How is Child Support Calculated?

Child support in Texas is calculated using a straightforward percentage-of-income model set forth in Chapter 154 of the Texas Family Code. The calculation begins with the obligor's (paying parent's) monthly net resources, which includes income from all sources — wages, salaries, self-employment income, commissions, bonuses, rental income, dividends, and certain other forms of compensation. Social Security benefits, disability payments, and unemployment benefits are also included.

From the obligor's gross monthly income, certain deductions are subtracted to arrive at net resources. These deductions include federal income taxes (based on the tax rate for a single person claiming one personal exemption), state income taxes (not applicable in Texas), Social Security taxes, Medicare taxes, union dues, and the cost of health insurance for the child. The resulting figure is the obligor's monthly net resources.

The Texas Family Code establishes guideline percentages based on the number of children before the court. For one child, the guideline amount is 20 percent of net resources; for two children, 25 percent; for three children, 30 percent; for four children, 35 percent; for five children, 40 percent; and for six or more children, not less than 40 percent. These percentages are applied to the first $9,200 of monthly net resources (as of the most recent statutory cap, which is updated periodically by the legislature).

Courts may order support above or below the guidelines if doing so is in the best interests of the child. Factors that may justify a deviation include the child's special needs, the cost of childcare, extraordinary educational expenses, the age and needs of the child, the ability of the parents to contribute, and any other relevant factors. When the obligor's net resources exceed the statutory cap, the court may order additional support based on the proven needs of the child.

Accurately calculating net resources is often the most contested aspect of a child support case, particularly when the obligor is self-employed, has variable income, or receives compensation in non-traditional forms. Tax returns, pay stubs, business records, and financial statements are all relevant evidence in establishing the obligor's true income and calculating the appropriate support amount.