What Counts as Income for Child Support in Texas?

 Posted on June 22, 2025 in Child Support

In a Texas divorce or custody case, one of the most important and hotly contested issues is child support. Whether you are the parent paying or receiving support, you need to understand how the court calculates the amount. That begins with knowing what counts as "income" under Texas law.

At The Law Office of Linda Risinger, our mother-daughter team of Frisco family lawyers has over 30 years of combined experience in Texas family law. We live and work in the communities we serve, and we offer free consultations to help parents understand their rights and obligations when it comes to child support.

How Does Texas Define Income for Child Support Purposes?

Texas child support guidelines are set out in Texas Family Code Section 154.062, which defines "net resources" as the basis for calculating support. Net resources include a wide range of income sources, not just wages from a traditional job.

The Court looks at all income that a parent receives, including:

• Salary, wages, commissions, and bonuses

• Self-employment income or profits from a business

• Rental property income

• Retirement benefits or pensions

• Severance pay

• Unemployment or disability benefits

• Alimony or spousal maintenance from another case

• Interest, dividends, and capital gains

• Gifts, prizes, and even lottery winnings

The court then subtracts certain allowable deductions, such as taxes, union dues, and the cost of the child’s health insurance, to arrive at the "net" amount used for support calculations.

What Does "Imputed Income" Mean?

If a parent is unemployed or underemployed on purpose, the court may "impute" income. This means it estimates what the parent could be earning based on education, experience, and work history. Texas judges do not look favorably on parents who attempt to avoid child support obligations by quitting or taking a lower-paying job.

How Do Tips or Seasonal Jobs Affect Child Support?

Some parents have income that varies from month to month. For example, construction workers, real estate agents, or commission-based salespeople have incomes that can vary wildly depending on the time of year. In these cases, the court may review income over a longer period of time (such as 12 months) to calculate an average. Bonuses, stock options, and other irregular income will be factored in, even if they are not guaranteed.

Can a Parent Hide Income to Reduce Child Support?

Trying to hide or underreport income is very risky. The court can and will investigate income sources, subpoena financial records, and call witnesses. If a parent is found to be hiding money or lying about income, the court may increase support, order penalties, or impose sanctions.

Working with a local attorney who understands both the law and the judge’s expectations can help you prepare an accurate financial statement or challenge one that is misleading.

Contact a Frisco, TX Child Support Lawyer Today

If you have questions about income and child support in Texas, contact a Collin County, TX child support attorney at The Law Office of Linda Risinger. Our experienced mother-daughter legal team is proud to serve families in Frisco and throughout North Texas. We offer free consultations and are ready to help you get the support your child needs or defend against unfair demands. Call 972-294-6533 today.