While this question may sound simple, the answer is rather complex. New Mexico law defines income in NMSA 40-4-11.1. Technically, many things that you may not have thought about become income when you read this statutory frame work. Overtime, work related benefits, car allowances and investments all fall under the definition of income. Why is this important? Well many people end up paying an amount different than they should based on improper understanding of income.
Here is a great example that we see happen frequently. A veteran is considered 50% disabled. While the veteran’s disability isn’t considered community property, it is considered income for child support purposes. Therefore, many people either mistakenly exclude this income or put too much in. Remember, child support in New Mexico is based on gross income, meaning the income one receives before taxes. Calculation of gross income has a significant impact on the calculation of child support.