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 North Carolina, when calculating child support payments, the income of a military parent is determined by considering various forms of compensation beyond the base salary. This includes housing allowances, the value of base housing, meals, and hazard pay, even though these benefits are not taxable by the IRS and do not appear on tax returns. North Carolina child support guidelines recognize that in-kind compensation should be included as income for the purposes of calculating child support. The military parent’s Leave and Earnings Statement (LES) is a key document that provides a detailed record of the military parent’s pay and leave status, and it is used as a reliable source to ascertain the total income for child support calculations. The LES reflects various allowances and special pays, which are factored into the child support determination to ensure an accurate assessment of the military parent's financial capacity to support their child.