How Texas Child Support Is Calculated, Including Bonuses

Does Texas calculate child support using gross or net income?

Texas uses net income, which the Family Code calls net resources. The court starts with gross resources, everything the paying parent receives, and subtracts only the deductions listed in Texas Family Code § 154.062.

• Social Security and Medicare taxes
• Federal income tax, figured as a single person with the standard deduction, regardless of how the parent actually files
• State income tax, which is zero for Texas wages
• Union dues
• The cost of health and dental insurance or cash medical support for the child
• Required retirement contributions, only for a parent who does not pay Social Security tax

Voluntary 401(k) contributions, car payments and other personal bills are not deducted. The guideline percentage, 20% of net resources for one child, 25% for two, 30% for three, 35% for four and 40% for five or more, is then applied to the monthly net figure.

How much child support would I pay if I make $100,000 a year?

The answer is the guideline percentage of your monthly net resources after the deductions above, not a fixed dollar figure. To estimate it, divide your annual income by twelve, subtract the monthly taxes and the child's insurance premium, and multiply what is left by the percentage for your number of children.

At $100,000 a year your monthly net resources are below the $11,700 cap, so the percentage applies to the whole net amount. The Texas Attorney General's online calculator uses the current tax tables. The figure can still move: the judge may adjust it for the possession schedule, child care or special needs, and the cost of the child's insurance changes the net number.

Two details change the math more than people expect. First, if you already support children from another relationship, the percentage for this case is lower under Texas Family Code § 154.129. Second, a high income only matters up to the cap: above $11,700 of monthly net resources, the guideline amount stops growing, and anything more must be justified by the child's proven needs.

Do overtime, bonuses and commissions count as income for child support?

Yes. Texas Family Code § 154.062 counts 100% of wages and salary and other pay for personal services, and names commissions, overtime pay, tips and bonuses. Interest, dividends, royalties, net rental income, severance, pensions, trust income, capital gains and gifts and prizes also count.

The hard part is irregular pay. A bonus paid once a year or overtime that rises and falls is usually averaged over a period the evidence supports, often using prior years' tax returns. Some orders set a base amount from salary plus a share of each bonus when it is paid. The right approach depends on how predictable the income is.

How is child support calculated for business owners?

For a business owner, child support is based on self-employment income: what the business actually makes available to the owner, not only the salary he or she chooses to draw. Texas counts self-employment income as a resource, and net rental income is figured without non-cash deductions like depreciation.

That is where the numbers often differ from the tax return. Personal expenses run through the company, a vehicle or phone paid by the business, retained earnings and a below-market salary can all be part of the picture. John works with CPAs and forensic accountants to read business records the way a court will (see business valuation).

What if my ex is self-employed and hides income?

The court can look past what the other parent reports. Through discovery, a parent can obtain bank statements, business ledgers, tax returns, loan applications and credit card records. Spending that does not match reported income is evidence in itself.

When a parent does not produce records, Texas law presumes, unless other evidence shows otherwise, that the parent earns at least the federal minimum wage for a 40-hour week. A judge who finds the evidence more convincing than the paperwork can set support on the income the evidence shows. A forensic accountant is often the person who makes that case clear.

Can a parent avoid child support by quitting their job?

No, not reliably. Under Texas Family Code § 154.066, if a parent's income is significantly less than what he or she could earn because of intentional unemployment or underemployment, the court may apply the guidelines to earning potential instead of actual income.

The evidence is the parent's work history, training, prior pay and the jobs available. A real layoff, a disability or a good-faith career change is treated differently from a parent who walks away from a job right before a hearing. The judge decides which one the facts show.

Do both parents pay child support with 50/50 custody?

Equal possession does not end support in Texas. The guidelines were written with one parent having primary possession, and Texas Family Code § 154.123 lets the judge depart from them based on the time each parent has the child and each parent's ability to contribute.

In equal-time cases, courts often compare the two parents' guideline figures and order the higher earner to pay the difference, or order no periodic support while splitting expenses. There is no single formula in the statute, so the possession schedule, the income gap and who pays for school, activities and insurance all shape the outcome. Learn more about schedules on the child custody page.