Monday, February 13, 2012

While setting child support payment, Is the 20% of income figured from Gross or Net Income?

While setting child support payment, Is the 20% of income figured from Gross or Net Income? Will the court take into consideration of Child health insurance premiums and travel expenses? Texas LawWhile setting child support payment, Is the 20% of income figured from Gross or Net Income?LAWS OF TEXAS: the c hild support office will take your gross - and figure out your net - using the information below.

hope this helps. I have attached the URL where I found it.

I got this from Texas family code chapter 154 subchapter B.

Its not as simple as 20% - they also take into consideration if you have health insurance on your child etc - and how much you pay monthly (going by the figures below)







SUBCHAPTER B. COMPUTING NET RESOURCES AVAILABLE FOR PAYMENT OF

CHILD SUPPORT





搂 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.



搂 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,

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; or

(3) benefits paid in accordance with aid for families

with dependent children.

(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.



(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 as added by Acts 2007, 80th Leg., R.S., Ch. 620,

搂 1

(e) In calculating expenses for health insurance coverage

for an obligor's 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.While setting child support payment, Is the 20% of income figured from Gross or Net Income?gross income.some take other things into consideration like health insurance but not travel.

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