If you’re wondering how child support is calculated in Texas, you’ve come to the right place. To get a strong understanding of how child support is calculated, you must first understand the child support formula that the State of Texas uses to determine the amount the state “presumes” is in the child’s best interest.
In essence, the child support formula first looks at the income that the paying parent brings in each month. Then, it looks at the deductions as the second part of the formula. This includes items such as health insurance and the number of children under 18 in the child support order. These two pieces of the formula determine how much calculated child support is to be paid each month.
So how does this formula determine the amount that needs to be paid? Well, child support in Texas is determined by looking at the average net monthly resources of the paying parent. The state then applies guidelines established by the Texas legislature that require paying a percentage of those average net monthly resources, dependent on how many children are involved in the child support order.
Sound confusing? It can be at first, but by understanding the formula to determine this amount, it makes the process a little less daunting. Using a monthly child support calculator helps provide an idea of the amount owed in child support each month.
Determine Average Monthly Net Resources
To accurately calculate child support in Texas, you will first need to determine the average monthly net resources of the paying parent. You do this by calculating the gross income over an annual basis.
When the paying parent is paid a fixed amount, calculate annual gross income with the following guidelines:
- If paid weekly, multiply by 52
- Every two weeks, multiply by 26
- If paid two times a month, multiply by 24
- And multiply by 12 if paid monthly
This will give you the annual gross income of the paying parent.
You may wonder what money to include in the annual gross income. We’re covering this and how child support is calculated in greater detail in the following steps.
Step 1 – Determine the Income to Include in Annual Gross Income
To understand how child support is calculated, it’s important to first know what income should go into the annual gross income calculation. Here are the items you will want to include to determine annual gross income:
- One hundred percent of all wage and salary income as well as other compensation for personal services (this includes commissions, overtime pay, tips, and bonuses)
- Any interest, dividends, and royalty income
- Any self-employment income
- Net rental income (this is the rent amount after deducting operating expenses and mortgage payments. It does not include non-cash items such as depreciation)
- Other income received. This may include social security benefits, unemployment, annuities, retirement pay, disability or worker’s compensation, trust income, alimony, interest income, etc.
You do not need to include the following in your annual gross income:
- Return of principal or capital on a note that is not included in net resources
- Any accounts receivable
- Any benefits paid through Temporary Assistance for Needy Families (also known as TANF)
- Payments that are for foster care
- Net resources of a new spouse
Step 2 – Determine the Average Monthly Net Resources
In order to determine the average monthly gross income, you’ll want to divide the annual gross income you get by 12. This will give you average monthly gross income.
After you’ve determine the monthly gross income, you will want to subtract from your number the items below to get the average monthly net resources:
- State income taxes
- The social security tax as well as federal income taxes paid for a single person
- The health insurance cost for involved children
- Any union dues
After subtracting these items from your monthly gross income, this will give you your average monthly net resources. When determining how child support is calculated, there is one last step.
Step 3 – Determine the Amount of Monthly Child Support Calculated
Now it’s time to determine the actual amount of monthly child support owed. First, multiply the following percentages by the average net monthly resources. Do this if the number is $8,550 or less. $8,550 is currently the maximum amount child support is calculated from.
- One Child: 20% of net resources
- Two Children: 25% of net resources
- Three Children: 30% of net resources
- Four Children: 35% of net resources
- Five Children: 40% of net resources
- Six Children: Not less than 40% of net resources
As an example, if the the average monthly net income of a paying parent is $2,800, their child support breakdown would be as follows:
- For one child: $2,800 (avg. monthly net income) x .20 (net resources) = $560 per month
- For two: $2,800 (avg. monthly net income) x .25 (net resources) = $700 per month
In the event that a child lives in different households or the average monthly net resources is greater than $8,550, this would make the calculation slightly different.
In September 2019, the maximum amount of $8,550 will likely change again because this is the next time the Texas legislature will review the maximum amount and likely adjust based on inflation.
As we’ve seen, the amount of calculated child support is a percentage of the average net monthly resources.
What if the Paying Parents Average Monthly Net Resources Exceed $8,550?
In the event that the paying parents average monthly net resources of $8,550, then the amount owed could be higher. This would depend on whether the the child’s needs are greater than the amounts in the established guidelines. This would first need to be proven.
A judge might order the difference in the amount to be paid by either one or both of the parents. This would be dependent on each parent’s circumstances as well as the child’s proven needs.
Need Additional Help Calculating Child Support?
Child support calculations are a little confusing at first. We certainly understand that. At our family law firm, we help families who are expecting to receive child support as well as those ordered to pay child support.
To help reach a positive solution in your case, we encourage you to contact us. Child support laws change from time to time. The best option is to get a professional legal partner by your side.
