Child support is a percentage of the net income of the non-custodial parent’s income. The percentage varies depending on the number of children for whom the child support is ordered and the number of other children that parent is supporting, such as children from a previous marriage.
Net income includes the following:
100% of all wage and salary income and other compensation for personal services (including commissions, overtime pay, tips, and bonuses);
interest, dividends, and royalty income;
self-employment income;
net rental income (defined as rent after deducting operating expenses and mortgage payments, but NOT including non-cash items such as depreciation); and
all other income actually being received, including severance pay, retirement benefits, pensions, trust income, annuities, capital gains, social security benefits, unemployment benefits, disability and workers’ compensation benefits, interest income from notes regardless of the source, gifts and prizes, spousal maintenance, and alimony.
Net income does NOT include:
return of principal or capital;
accounts receivable;
benefits paid in accordance with aid for families with dependent children (welfare payments); or
income from a new spouse
The following items are deducted from your resources prior to calculating child support:
social security taxes;
federal income tax based on the tax rate for a single person claiming one personal exemption and the standard deduction;
state income tax;
union dues; and
expenses for health insurance coverage for the child for whom child support is paid.
What constitutes income and what deductions are allowed for self-employed persons can get quite complicated. Consult an attorney to discuss specific circumstances in calculating child support.
If your income varies over time, the courts may take your average income over a period such as your average income over six months to one year.
How does the court decide the child support amount?
Texas has established a formula to calculate what amount a non-custodial parent should pay for child support. If a non-custodial parent’s net monthly income is less than $6,000, Texas law has established the following guidelines for child support payments. The amount withheld is based on the net income each month.
• 20 % for one child
• 25 % for two children
• 30 % for three children
• 35 % for four children
• 40 % for five children
• Not less than 40 % for six children