Texas courts rarely order child support payments exceeding 20% of an owing parent’s net income plus 5% for each additional child. This “soft cap” is derived from guidelines contained in the Texas Family Code, and courts presume that they are in the best interest of children. Within this in mind, support will vary on a case-by-case basis according to each family’s needs. According to the Texas Family Code Section 154.062 (b), net resources include the following:
- 100 percent of all wage and salary income and other compensation for personal services (including commissions, overtime pay, tips, and bonuses);
- Interest, dividends, and royalty income;
- Self-employment income;
- Net rental income (defined as rent after deducting operating expenses and mortgage payments, but not including non-cash items such as depreciation); and,
- 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, United States Department of Veterans Affairs disability benefits other than non-service-connected disability pension benefits, as defined by 38 U.S.C. Section 101(17), unemployment benefits, disability and workers’ compensation benefits, interest income from notes regardless of the source, gifts and prizes, spousal maintenance, and alimony.
- Returns of principal or capital; or
- Accounts receivable; or
- Benefits paid in accordance with the Temporary Assistance for Needy Families program or another federal public assistance program; or
- Any payments for foster care of a child.