What income is used to set child support?

Guideline child support is calculated using the net resources of the noncustodial parent. Your net resources are not the same thing as your take-home pay.

Net resources is all money received by the noncustodial parent minus:

Social Security taxes, 

income taxes for a single person, 

the cost of health and dental insurance, or cash medical support for the child (if paid by the noncustodial parent),

union dues, and

non-discretionary retirement contributions (if the noncustodial parent does not pay social security taxes).

See Texas Family Code Section 154.062.

“Resources” includes all money from all sources, including: wages, overtime, tips, bonuses, dividend income, self-employment income, severance pay, retirement benefits, pensions, trust income, annuities, capital gains, social security benefits (other than SSI), veterans disability benefits (other than non-service-connected disability pension benefits) unemployment benefits, disability and worker’s compensation benefits, interest income, gifts, prizes, spousal maintenance and alimony.

Resources does not include return on principal or capital, SSI, accounts receivable, TANF or payments received for foster care of a child.

 

Net resources are capped at $8,550 per month. If the noncustodial parent earns more than $8,550 per month, the judge may order additional child support based on the income of the parties and the proven needs of the child. 

The court may not include the income of the noncustodial parent’s spouse when calculating child support.