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 Montana, when calculating child support obligations, the income of a military parent includes various forms of compensation beyond the base salary. According to Montana's child support guidelines, income can encompass housing allowances, in-kind compensation such as base housing and meals, and hazard pay, even if these are not taxed by the IRS and do not appear on tax returns. The state recognizes that these benefits have monetary value and contribute to the overall financial resources of the military parent. The military parent's Leave and Earnings Statement (LES) is a critical document in this process, as it provides a detailed record of the service member's pay and leave status, and is used to ascertain the full scope of their income for child support calculations. Montana courts will consider the LES, along with other relevant information, to ensure an accurate and fair determination of child support responsibilities.