III. Deductions From Income

§3.01 What Is Net Income?

Annual net disposable income is annual gross income minus allowable deductions. [FC §4059.] While gross income is broadly and expansively defined, deductions in calculating net income are specific and narrowly construed. [See Stewart v Gomez (1996) 47 CA4th 1748, 1755; County of Tulare v Campbell (1996) 50 CA4th 847, 851.] The statutory allowable deductions under FC §4059 are discussed in §§3.02-3.09.

Net disposable income is the "key financial factor" in calculating child support. [Marriage of Hubner (2001) 94 CA4th 175, 186.] After inputting gross income and deductions into any of the Judicial Council certified programs for determining child support, the program will calculate each parent's net monthly disposable income according to the statewide guideline. [See FC §4055.] See the online course Child and Spousal Support for more discussion of the guideline and the support programs.