Child Support is Based on Net Monthly Income
In Texas, child support is calculated based on the payor’s (or obligor’s) net monthly income. The Texas Family Code states that net income is to be calculated by “subtracting from gross income social security taxes and federal income tax withholding for a single personal claiming one personal exemption.” Tex. Fam. Code §154.061(b). This means that simply attempting to calculate one’s child support obligation based on his or her take home pay is a mistake. Payments for monthly health insurance premiums, 401(k) contributions, and other payroll deductions not specified in the family code will be included for purposes of calculating one’s net monthly income. In addition to wages and salary, rental income, retirement and annuity income, disability, unemployment, and gifts are all considered income for purposes of calculating child support. Read More “Child Support and High-Income Earners”
