A new legislative proposal, SB0027, introduced in Illinois on January 13, 2025, aims to reshape child support calculations by incorporating a more nuanced approach to income assessment for parents. The bill seeks to clarify how gross and net income are defined, particularly for retired parents, and introduces a child support credit system for benefits paid to the other party for the child.

At the heart of SB0027 is the definition of "gross income," which now includes maintenance payments treated as taxable income. This change is designed to ensure that all relevant income sources are considered when determining a parent's child support obligations. The bill also outlines a method for calculating "net income," allowing for standardized or individualized tax amounts to be deducted, thus providing a clearer picture of a parent's financial situation.

Notably, the bill stipulates that the parent with the majority of parenting time is generally entitled to claim the dependency exemption for the child, unless otherwise determined by a court or mutual agreement. This provision could significantly impact tax benefits for custodial parents, potentially easing their financial burden.

While the bill has garnered support for its intent to create a fairer child support system, it has also sparked debates regarding its implications for parents' financial responsibilities and the potential for increased litigation over income definitions. Critics argue that the complexities introduced by the new definitions could lead to confusion and disputes in already contentious custody cases.

As SB0027 moves through the legislative process, its potential economic and social implications are becoming clearer. Advocates believe it could lead to more equitable outcomes for children and parents alike, while opponents caution that it may complicate an already challenging system. The bill's progress will be closely watched as stakeholders weigh in on its future impact on family law in Illinois.