House Research Department Updated: November 2015
Minnesota’s Child Support Laws Page 9
Special Circumstances
Potential income. If a parent is voluntarily unemployed, underemployed, employed less than
full-time, or there is no direct evidence of income, the court must calculate child support based
on potential income of that parent. The court will determine potential income by imputing
income based on the parent’s probable earnings based on employment potential, recent work
history, and occupational qualifications; or if the parent is receiving unemployment or workers’
compensation, by using that amount as the individual’s income; or by imputing income based on
the full-time wages the parent could earn at 150 percent of the current federal or state minimum
wage, whichever is higher. Effective March 1, 2016, imputed income will be based on the
income a parent could earn working 30 hours per week at 100 percent of the current federal or
state minimum wage, whichever is higher. If a parent is physically or mentally incapacitated, or
is incarcerated other than for nonpayment of support, the parent is not considered voluntarily
unemployed, underemployed, or employed on a less than full-time basis. Minn. Stat. § 518A.32.
Independent contractors; self-employed. Income from self-employment or operation of a
business means gross receipts minus ordinary and necessary expenses. “Ordinary and necessary
expenses” for child support purposes does not include expenses, such as accelerated depreciation
expenses or investment tax credits allowed under the Internal Revenue Code, or expenses the
court determines are inappropriate or excessive. The person seeking to deduct an expense,
including depreciation, has the burden to prove the expense is ordinary and necessary. Minn. Stat.
§ 518A. 30.
Expense reimbursements; in-kind payments. If received in the course of employment, self-
employment, or operation of a business, expense reimbursements and in-kind payments are
counted as income if they reduce living expenses. Minn. Stat. § 518A.29.
S
ocial Security or veterans’ ben
efits. If a child receives Social Security benefits, veterans’
benefits, or veterans dependents’ education assistance due to the eligibility of a parent, the
amount will be included in the gross income of the parent on whose eligibility the benefits are
based. If the obligee, as representative payee for the child, receives the benefits for the child,
then the amount of benefit will be subtracted from the obligor’s net child support obligation.
Minn. Stat. § 518A.31.
Commissions; bonuses; lump-sum payments. Commissions and bonuses are considered when
determining gross income. Lump-sum payments may be withheld from an obligor to pay past
due support or to pay future support if there is a history of willful nonpayment. Minn. Stat. §§
518A.29, para. (a); 518A.53, subd. 11.
Seasonal employment. Obligors who are seasonally employed generally are required to make
equal monthly payments throughout the year. Courts do have discretion to construct support
orders to reflect fluctuations in income. But because the expenses of raising a child are not
seasonal, courts generally require equal monthly payments, and the obligor must budget
accordingly. Minn. Stat. § 518A.38, subd. 2.
Overtime. Generally, it is assumed that obligors are not required to work overtime. However, if
an obligor has a history of working overtime, the court may conclude that overtime is a normal,
regular source of income for the obligor. In that case, the court can consider overtime earnings