§3.09 Hardship

Gross income is reduced for hardship. [FC §4059(g).] At the request of a parent, you may deduct for hardship if that parent is experiencing "extreme financial hardship due to justifiable expenses" [FC §4070] resulting from any of the following:

• Extraordinary health expenses for which the parent is financially responsible [FC §4071(a)(1)],
• Uninsured catastrophic losses [FC §4071(a)(1)], or
• Minimum basic living expenses of either parent's natural or adopted children who the parent is obliged to support from other marriages or relationships and who reside with the parent [FC §4071(a)(2)]. Necessary expenses include food, clothing, shelter, and child care.

If you allow a hardship deduction, you must:

• State the reasons supporting the deduction in writing or on the record [FC §4072(a)(1)],
• Document the amount of the deduction and all of the underlying facts and circumstances [FC §4072(a)(2)], and
• Whenever possible, specify the duration of the deduction [FC §4072(b)].

Click here for a printable net income chart listing sources of gross income and available exclusions and deductions.