What Counts as Net Resources in a Texas Child Support Case
Texas child support is a percentage of net resources. Getting net resources right is the most important — and most disputed — part of any child support calculation. The rules are in Texas Family Code § 154.062.
Income that IS counted
- Wages, salary, overtime, tips, commissions, and bonuses
- Self-employment and business income (net of legitimate expenses)
- Rental income
- Interest, dividends, and royalty income
- Retirement, pension, and annuity income
- Severance pay, unemployment benefits, and disability benefits
- Workers' compensation benefits
- Trust income, capital gains, and gifts or prizes
- Spousal maintenance or alimony actually received
In short, Texas starts from almost all income, from all sources.
Income that is NOT counted
- Return of principal or capital (for example, the principal portion of a loan repayment)
- Accounts receivable
- Federal public assistance program payments (TANF)
- Supplemental Security Income (SSI)
Deductions allowed to reach "net resources"
From the gross figure above, Texas subtracts only:
- Social Security taxes — or mandatory retirement contributions if the job does not pay into Social Security;
- Federal income tax for a single person claiming one personal exemption and the standard deduction (a standardized figure, not your actual W-2 withholding);
- State income tax (Texas: $0);
- Union dues; and
- The cost of the child's health and dental insurance (and any cash medical/dental support ordered).
Notice what is not deductible: rent, car payments, credit-card debt, and similar living expenses do not reduce net resources.
Why this matters
Because actual paycheck withholding is ignored in favor of a standardized tax calculation, the "net resources" used for child support is often different from the take-home pay a parent sees. Self- employment and cash income are frequent sources of dispute — see child support for self-employed parents.
Frequently asked questions
Does a new spouse's income count? No. A new spouse's income is not part of the paying parent's net resources.
Can a parent's income be "imputed"? Yes. If a parent is intentionally unemployed or underemployed, a court can calculate support based on earning potential rather than actual income.
This is general information, not legal advice. For help establishing the correct net resources in your case, contact Nemec Law Office, serving Tarrant, Dallas, Denton, and Collin counties.
Related: How child support is calculated · Self-employed parents · Calculator