I live in Massachusetts and I wanted to know if 401K & Café 125 is still considered countable for gross income if your paying child support. Here's an example of the case...

Court order states other parent shall pay 20% of any gross income that he earn for that year in excess of $35,000.

Now lets say he made $40,000 which is $5000 over & 20% of that is $1000.

OK, now lets say he has 401K & Other Café 125...

So he makes $40,000/yr minus $1000 for 401K & minus $2000 for Other Cafe125 & so the reported W-2 wages would be $37,000.

Now the actual question I'm asking is the $37,000 is now the gross income?
So the excess for the year would be $2000 & 20% of that is $400.

Is this correct?