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 South Dakota, when calculating child support payments, it is important to accurately determine a military parent's income, which can be more complex than civilian income due to various types of military pay and allowances. The state follows guidelines that consider all forms of income, including non-taxable income such as housing allowances, basic allowance for subsistence (food), and hazard pay, when calculating child support. These allowances, although not taxed by the IRS, are factored into the income calculation for child support purposes because they contribute to the overall financial resources available to the military parent. The military parent’s Leave and Earnings Statement (LES) is a key document that provides detailed information about their pay and allowances, and it is used as a reliable source to establish their income level for child support calculations. South Dakota's child support laws aim to ensure that the child support payments reflect the true economic capacity of the military parent, including the value of in-kind compensation.