Guideline child support is calculated based on the net resources of the non-custodial parent. Net resources are not the same thing as take home pay.
For child support purposes, net resources equals all money received by the non-custodial parent (see list of money included below) minus the following:
- Social Security taxes, - and -
- income taxes for a single person, - and -
- the cost of health insurance for the child or cash medical support (if paid by the non-custodial parent),
- union dues, - and -
- non-discretionary retirement contributions if the non-custodial parent does not pay social security taxes.
See Texas Family Code Section 154.062.
“Resources” is 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 SSI, return on principal or capital, accounts receivable, TANF or payments received for foster care of a child.
When calculating child support, the non-custodial parent’s net resources are capped at $8,550 per month. If the non-custodial parent earns more than $8,550 per month, the judge can order additional child support based on the income of the parties and the proven needs of the child. See Texas Family Code Sections 154.125 and 154.126
A judge cannot include the income of the non-custodial parent’s spouse when calculating child support. See Texas Family Code Section 154.069.