Where do I find my paycheck or my W-2?
If your job has an online employee portal, your paystub or W-2 can generally be found there. If you are unsure of where to find your paystub or W-2, contact your employer so that they can provide it for you.
What’s the difference between gross and net incomes?
Gross income is the amount of money you earn before taxes and other deductions are taken out of your pay. This means how much you make from working plus any benefits you receive and other money you make such as income from a rental property.
Net income is the amount of income after taxes and other deductions are taken out of your pay. Net income is sometimes referred to as “take home” pay.
What’s the difference between salaries and wages?
A salary is when you pay employees the same amount each pay period regardless of how many hours they work. On the other hand, a wage is an hourly rate you pay employees based on how much time they work in a pay period.
How do I calculate weekly amounts?
On the Short Form Financial Statement, you will need to report income, deductions, and expenses in weekly amounts.
- If you are paid bi-weekly (every two weeks) you will divide by two (2).
- If you receive a check (like SSI) or pay an expense monthly (like rent), divide the monthly number by 4.3. This number is used to divide monthly amounts because it is the average number of weeks in a month.
Pay attention to when the form asks for weekly and monthly amounts. Putting the wrong amount may result in the Court having an incorrect understanding of your financial situation. This may result in the Court calculating alimony, child support, or property division incorrectly.
What if my income changes week to week?
If your income fluctuates or changes, you may wish to figure out an average amount that you make and write a note on the form that your income changes and how you arrived at that calculation.
What's the difference between OASDI, Social Security, SSR, SSDI, Survivor & Dependent benefits, and SSI?
The Social Security Administration (SSA) has various cash benefit programs for elders and people with disabilities. These programs include Old-Age, Survivors and Disability Insurance (OASDI) and Supplemental Security Income (SSI). Knowing which benefit you have can sometimes be confusing and some people receive a combination of the benefits depending on their situation.
Old-Age, Survivors and Disability Insurance (OASDI) also known simply as “Social Security”, is a program paid into through Social Security taxes. This program includes Social Security Retirement, Survivor & Dependent benefits, and Social Security Disability Insurance (SSDI). These benefits are based on work history.
- Social Security Retirement (SSR): is a monthly check that replaces part of your income when you reduce the hours you work or retire.
- Social Security Disability Insurance (SSDI): provides financial assistance to people with qualifying disabilities.
- Dependents & Survivor’s benefits: people in this group include dependents of those who are now retired or disabled, or survivors of certain family members who paid into Social Security before they died.
Supplemental Security Income (SSI) is a needs-based program for people with low incomes who are blind, disabled, or 65 or older. Unlike Social Security Retirement and SSDI, there is no work-related requirement to qualify for this benefit.
What is FICA?
Federal Insurance Contributions Act (FICA) is a deduction from your paycheck that helps fund both Social Security and Medicare programs. It may also appear on your paycheck as Social Security, OASDI, or Medicare. Sometimes it is separated out between Social Security (SS) and Medicare (Med) on a paycheck.
Where do I put dependents benefits on the Financial Statement?
If a dependent benefit check is being paid to you for the benefit of a dependent child, you must report this in Paragraph 2 either under subsection (j) “Social Security” or subsection (q) “other.” Wherever you decide to list it, make sure to divide the monthly amount by 4.3, write down that it is a dependent’s benefit, and state the name of the child receiving the benefit.
If a dependent benefit check is being paid to the other parent of a dependent child, you would not list this amount on any answer line of the financial statement because it is not income you are receiving. You may, however, make a note in a blank area of the financial statement to alert the court that a dependent benefit exists, write down who the benefit is being paid to, the amount of the benefit and the name of the child receiving the benefit.
Where do I put deductions for Paid Family and Medical Leave (FML, PFML, MA MLI/EE, and MA FLI/EE)?
Paid Family and Medical Leave (PFML), which includes Medical Leave Insurance (MA MLI/EE), and Family Leave Insurance (MA FLI/EE) deductions may be added to the State income tax deductions in Paragraph 3: Itemized Deduction, subsection (b). Make sure these amounts are calculated weekly.
What’s the difference between expenses, liabilities, and debt?
Expenses include routine current living costs associated with housing, food, and essentials.
Liabilities are incurred debts, such as credit cards and student loan debt.
You may think of liabilities as debts that could possibly go away once paid off, while expenses would likely not, as these are for recurring needs, such as food and shelter.
Do I list assets that I own with other people, such as joint bank accounts or real estate?
Yes, jointly owned assets must be listed. When listing jointly owned assets, you should describe the asset (such as, “joint checking account”), where the asset is held (such as, “Main Street Bank of Massachusetts”), who the co-owners are (Mary Smith, Mother) and what the percentage of your respective ownership is (50% self/50% Mary Smith). Note: For the security of your financial information, do not write account numbers unless a Court orders you otherwise.
Is a leased car considered an asset? Where do I list my car insurance payment?
No, a leased car is not an asset because you do not own it. You may list your lease payment under the expenses section on the line labeled, “Motor Vehicle Payment.” Your car insurance payment will be listed under expenses section as a “Motor Vehicle Expense.”