Because of the unique nature of military pay, it can be difficult to determine a military parent’s income for purposes of calculating child support payments. In addition to the military parent’s base salary, they may have a housing allowance or live in base housing, and be provided meals and hazard pay. Because the Internal Revenue Service (IRS) does not tax military housing and food allowances, this information will not appear on the military parent’s tax return. But most courts agree that even though this in-kind compensation is not taxable, it should be counted as income when calculating child support obligations.

A military parent’s Leave and Earnings Statement (LES) documents pay and leave status on a monthly basis (similar to a pay stub), and is a good starting point for determining the military parent’s income for purposes of calculating child support obligations.

In Iowa, when calculating child support payments, the court considers the income of both parents. For a military parent, this includes not only the base salary but also other forms of compensation such as housing allowances, base housing benefits, and hazard pay. Although the IRS does not tax military housing and food allowances, and thus they do not appear on tax returns, Iowa courts typically include these in-kind compensations as income for the purpose of determining child support obligations. The military parent’s Leave and Earnings Statement (LES) is a crucial document in this process, as it provides a detailed record of the military parent’s pay and leave status on a monthly basis. This statement is used to accurately assess the military parent's total income, ensuring that child support calculations are fair and reflective of the parent's true financial situation.