Texas Family Code
As effective September 1, 2013
Subchapter B
Sec. 154.061: Computing Net Monthly Income
(a) Whenever feasible, gross income should first be computed on an annual basis and then should be recalculated to determine average monthly gross income.
(b) The Title IV-D agency shall annually promulgate tax charts to compute net monthly income, subtracting from gross income social security taxes and federal income tax withholding for a single person claiming one personal exemption and the standard deduction.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.062: Net Resources
(a) The court shall calculate net resources for the purpose of determining child support liability as provided by this section.
(b) Resources include:
(1) 100 percent of all wage and salary income and other compensation for personal services (including commissions, overtime pay, tips, and bonuses);
(2) interest, dividends, and royalty income;
(3) self-employment income;
(4) net rental income (defined as rent after deducting operating expenses and mortgage payments, but not including noncash items such as depreciation); and
(5) all other income actually being received, including severance pay, retirement benefits, pensions, trust income, annuities, capital gains, social security benefits other than supplemental security income, unemployment benefits, disability and workers' compensation benefits, interest income from notes regardless of the source, gifts and prizes, spousal maintenance, and alimony.
(c) Resources do not include:
(1) return of principal or capital;
(2) accounts receivable;
(3) benefits paid in accordance with the Temporary Assistance for Needy Families program or another federal public assistance program; or
(4) payments for foster care of a child.
Text of subsection effective until September 01, 2012
(d) The court shall deduct the following items from resources to determine the net resources available for child support:
(1) social security taxes;
(2) federal income tax based on the tax rate for a single person claiming one personal exemption and the standard deduction;
(3) state income tax;
(4) union dues; and
(5) expenses for the cost of health insurance or cash medical support for the obligor's child ordered by the court under Section 154.182.
Text of subsection effective on September 01, 2012
(d) The court shall deduct the following items from resources to determine the net resources available for child support:
(1) social security taxes;
(2) federal income tax based on the tax rate for a single person claiming one personal exemption and the standard deduction;
(3) state income tax;
(4) union dues;
(5) expenses for the cost of health insurance or cash medical support for the obligor's child ordered by the court under Section 154.182; and
(6) if the obligor does not pay social security taxes, nondiscretionary retirement plan contributions.
(e) In calculating the amount of the deduction for health care coverage for a child under Subsection (d)(5), if the obligor has other minor dependents covered under the same health insurance plan, the court shall divide the total cost to the obligor for the insurance by the total number of minor dependents, including the child, covered under the plan.
Text of subsection effective on September 01, 2012
(f) For purposes of Subsection (d)(6), a nondiscretionary retirement plan is a plan to which an employee is required to contribute as a condition of employment.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995. Amended by Acts 1995, 74th Leg., ch. 751, Sec. 41, eff. Sept. 1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 363, Sec. 1, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 620, Sec. 1, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 87, Sec. 9.001, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 767, Sec. 4, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 834, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1118, Sec. 1, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 91, Sec. 9.001, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 932, Sec. 1, eff. September 1, 2012.
Sec. 154.063: Party to Furnish Information
The court shall require a party to:
(1) furnish information sufficient to accurately identify that party's net resources and ability to pay child support; and
(2) produce copies of income tax returns for the past two years, a financial statement, and current pay stubs.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.064: Medical Support for Child Presumptively Provided By Obligor
The guidelines for support of a child are based on the assumption that the court will order the obligor to provide medical support for the child in addition to the amount of child support calculated in accordance with those guidelines.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995. Amended by Acts 2001, 77th Leg., ch. 1023, Sec. 7, eff. Sept. 1, 2001.
Sec. 154.065: Self-Employment Income
(a) Income from self-employment, whether positive or negative, includes benefits allocated to an individual from a business or undertaking in the form of a proprietorship, partnership, joint venture, close corporation, agency, or independent contractor, less ordinary and necessary expenses required to produce that income.
(b) In its discretion, the court may exclude from self-employment income amounts allowable under federal income tax law as depreciation, tax credits, or any other business expenses shown by the evidence to be inappropriate in making the determination of income available for the purpose of calculating child support.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.066: Intentional Unemployment Or Underemployment
If the actual income of the obligor is significantly less than what the obligor could earn because of intentional unemployment or underemployment, the court may apply the support guidelines to the earning potential of the obligor.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.067: Deemed Income
(a) When appropriate, in order to determine the net resources available for child support, the court may assign a reasonable amount of deemed income attributable to assets that do not currently produce income. The court shall also consider whether certain property that is not producing income can be liquidated without an unreasonable financial sacrifice because of cyclical or other market conditions. If there is no effective market for the property, the carrying costs of such an investment, including property taxes and note payments, shall be offset against the income attributed to the property.
(b) The court may assign a reasonable amount of deemed income to income-producing assets that a party has voluntarily transferred or on which earnings have intentionally been reduced.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.068: Wage and Salary Presumption
In the absence of evidence of the wage and salary income of a party, the court shall presume that the party has wages or salary equal to the federal minimum wage for a 40-hour week.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.069: Net Resources of Spouse
(a) The court may not add any portion of the net resources of a spouse to the net resources of an obligor or obligee in order to calculate the amount of child support to be ordered.
(b) The court may not subtract the needs of a spouse, or of a dependent of a spouse, from the net resources of the obligor or obligee.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.
Sec. 154.070: Child Support Received By Obligor
In a situation involving multiple households due child support, child support received by an obligor shall be added to the obligor's net resources to compute the net resources before determining the child support credit or applying the percentages in the multiple household table in this chapter.
Comments
Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. April 20, 1995.