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Marco, a Houston pipefitter, is staring at a pay stub that lists $7,400 in gross wages but only $5,920 in take-home pay. His former spouse's attorney calls one figure “income,” Marco calls the other his paycheck, and neither number alone answers the legal question: what amount should Texas use to calculate child support?
That answer comes from net resources, not just the amount deposited into a bank account. Texas Family Code §154.062 identifies the income included in resources and the deductions that may be taken before support is calculated. Union dues and a child's health insurance cost can matter, but many other lines on a pay stub won't lower the support base.
The distinction matters whether support is established through the Office of the Attorney General or a private lawsuit. A properly documented pay stub often becomes the starting point for both paths. The practical task is to separate deductions Texas law recognizes from expenses a judge will treat as personal financial choices.
Why Your Pay Stub Matters More Than You Think
Marco's pay stub contains more than gross pay and taxes. It shows union dues, medical insurance, retirement contributions, voluntary coverage, and payroll withholding. To Marco, each deduction reduces the money available for rent, food, and household expenses. To the court, each line must be tested against the limited deductions authorized by Texas law.
That distinction explains why two parents can look at the same stub and reach different conclusions. Marco sees $5,920 in take-home pay. The court may calculate a different figure after reviewing gross resources and subtracting only the deductions permitted under Texas Family Code §154.062. The legal calculation doesn't just copy the “net pay” box.
Gross wages, take-home pay, and net resources
Texas starts with resources from income sources identified in the Family Code, then subtracts qualifying items. Net resources are a legal calculation, not a payroll label. Federal income taxes, Social Security taxes, and qualifying insurance costs may reduce the figure, while credit-card garnishments or voluntary savings usually don't.
Union dues create a particularly common dispute. A deduction may appear on every paycheck and still fail to qualify if it isn't required as a condition of employment. Health insurance presents a similar problem when a parent claims the entire family premium even though the policy covers a spouse and other children.
Practical rule: A pay stub proves what was withheld. It doesn't, by itself, prove that every withholding is deductible for child support.
The same framework applies when the OAG establishes or reviews support and when a parent files in district court. The documents may be presented in different settings, but the judge or review officer still needs reliable evidence of income, qualifying deductions, and the child's insurance cost.
The sections that follow address the statutory sequence, the narrow treatment of union dues, and the proration rule for health insurance. They also show how a parent can prepare a clean calculation instead of arguing from the take-home-pay number alone.
How Texas Turns Gross Income Into Net Resources
Texas Family Code §154.062 requires the court to identify resources and then calculate net resources using specific deductions. The statute includes wage and salary income, self-employment income, and other resources recognized under the code. Variable compensation, including overtime, commissions, and bonuses, generally belongs in the analysis when it is part of the parent's resources.
The calculation should be organized in a fixed order:
- Identify total resources. Start with all relevant wage, salary, and self-employment income. For fluctuating income, the court may review historical records to determine a representative monthly amount.
- Account for taxes. The statutory framework includes Social Security taxes and federal income tax calculated under the applicable method. Texas has no state income tax, so a pay stub's state-tax line requires careful scrutiny if one appears.
- Subtract qualifying union dues. Under §154.062, dues qualify only when they're required as a condition of employment.
- Subtract qualifying child insurance costs. The statute addresses health insurance, dental insurance, and cash medical support paid for the obligor's child.
- Apply the guideline framework. After net resources are determined, the applicable percentage under §154.125 is applied, subject to the current cap described below.
This sequence is why a payroll “net” figure can be misleading. The court isn't deciding which expenses make a household budget difficult. It's applying a statutory definition. The Texas Family Code §154.062 text describes the deductions and the proration requirement when a plan covers multiple minor dependents.
Deductions parents often misunderstand
A 401(k) contribution may be sensible financial planning, but it usually isn't treated like a required tax deduction in this calculation. The same is true of charitable contributions, voluntary life insurance, credit-card garnishments, and personal debt payments. Union initiation fees that aren't recurring employment conditions also face a serious qualification problem.
A parent shouldn't assume that every deduction marked “mandatory” by an employer is legally deductible. The question is whether the deduction fits §154.062, not whether payroll automatically took it.
For a practical review of the income sources included in the calculation, see What Counts as Net Resources for Child Support. The Texas net-resources calculation guide also provides a useful way to organize the statutory arithmetic before presenting it to the court.
The OAG's Texas monthly child support calculator reflects the guideline structure, including rates of 20% for one child, 25% for two, 30% for three, 35% for four, and 40% for five or more children, and the $11,700 monthly net-resources cap effective September 1, 2025.
Union Dues and What Actually Counts
Texas Family Code §154.062 doesn't make every union-related charge deductible. The key phrase is “required as a condition of employment.” A parent seeking the deduction must connect the monthly dues to the employment arrangement, not merely show that the union appears on the payroll record.
Texas workers may be protected from compelled union membership or financial support in many employment settings. That makes the proof especially important. A court may ask whether the collective bargaining agreement requires membership or payment to keep the job, whether the worker has an alternative status, and whether the deduction is recurring.
Three pay-stub categories
Mandatory monthly dues tied to employment are the strongest category. The parent should provide the relevant collective bargaining agreement language, payroll authorization, and a record showing the recurring amount.
Political-action contributions and optional union insurance upgrades are different. They may be useful or important to the worker, but they don't ordinarily satisfy the statutory condition-of-employment test.
Initiation fees, reinstated back dues, strike assessments, and late fees require separate analysis. Courts may view one-time or penalty charges as non-recurring expenses rather than a monthly resource deduction. A parent shouldn't fold those charges into ordinary dues without documentation and a clear legal basis.
| Pay Stub Line Item | Deductible From Net Resources? | Why |
|---|---|---|
| Required recurring union dues | Usually, if proven | The deduction may qualify when payment is required as a condition of employment under §154.062 |
| Voluntary political contribution | Generally no | It isn't a required employment cost |
| Optional union insurance upgrade | Generally no | The added coverage is voluntary |
| Initiation fee | Usually not as a recurring deduction | It is commonly a non-recurring employment expense |
| Reinstated back dues | Often disputed | The parent must show why the charge is required to maintain employment |
| Strike assessment or late fee | Usually not treated like ordinary dues | It may be temporary, punitive, or unrelated to the recurring deduction |
The court may also distinguish a worker who pays only an agency-related amount from a full member who elects additional benefits. The record should identify the amount required to remain employed and separate it from optional charges. A concise review of excluded income and expense arguments is available in What Income Is Excluded From Child Support in Texas.
Bring the agreement, the authorization, and the payroll history. A single unexplained deduction line rarely carries the argument by itself.
Health Insurance, Dental, and Cash Medical Support
Health insurance can reduce net resources only to the extent the parent pays a qualifying cost for the child. Texas Family Code §154.062 also requires proration when a single plan covers multiple minor dependents. If the parent, spouse, and children share coverage, the court does not accept the entire employee-plus-family premium as the child's deduction.
The arithmetic starts with the total premium attributable to the coverage tier, then divides that cost by the total number of covered minor dependents, including the child at issue. The statute's rule prevents a parent from assigning every family insurance cost to one child-support case.
What the court examines
The evidence should show the premium before and after the child's enrollment, the covered individuals, and the amount withheld from the parent's compensation. An employer-paid portion isn't the parent's payroll deduction and shouldn't be claimed as money the parent paid.
COBRA and marketplace coverage can create different questions. A parent must show the actual monthly cost, account for any subsidy affecting the parent's net premium, and explain whether the coverage is available and appropriate under the order. Dental coverage receives similar scrutiny when the premium is combined with medical coverage.
Cash medical support is not another name for a health-insurance premium. It is a separate support mechanism addressed by the statute and the applicable order. Texas materials identify a reasonable health-insurance cost benchmark of no more than 10% of the responsible parent's monthly net income, while related guidance identifies 9% for health insurance and 1.5% for dental insurance as percentages of annual net resources. Those benchmarks are discussed in the Texas health and dental support obligation guide.
A parent should separate three figures in the proposed order: the premium paid for the child, the prorated share of a family policy, and any cash medical amount ordered separately. Combining them can produce a number that looks persuasive on a spreadsheet but doesn't match the statutory treatment.
A Real Calculation Using the 2025 Guidelines
A pay stub can show a parent earning $7,200 in gross monthly income, but support depends on the deductions Texas law permits. In this example, the records show $95 in qualifying union dues, federal income tax, FICA, and $412 for the child's prorated share of employer health insurance. The policy covers the parent, spouse, and two children.
In this example, net resources come to $4,980 after the statutory deductions below. To make the arithmetic reconcile, the illustrative tax entries are shown as $1,034 for federal income tax and $779 for FICA.
| Line Item | Amount | Running Total |
|---|---|---|
| Gross monthly resources | $7,200 | $7,200 |
| Qualifying union dues | -$95 | $7,105 |
| Federal income tax, FIT | -$1,034 | $6,071 |
| Social Security and Medicare taxes, FICA | -$779 | $5,292 |
| Child's prorated health insurance cost | -$312 | $4,980 |
| Calculated net resources | $4,980 |
The $312 insurance deduction represents the child's allocated share, rather than the full family premium. Under §154.062, a family policy covering multiple minor dependents must be allocated among those children. The payroll record and insurance documents should support the amount used.
Applying the guideline percentage
This is a one-child calculation, so the applicable 20% guideline rate applies. The updated cap is $11,700 in monthly net resources effective September 1, 2025. Because the example's $4,980 in net resources falls below that cap, the full one-child percentage applies.
$4,980 × 20% = $996
The example also includes $100 in separate cash medical support, producing a total monthly obligation of $1,096. The order should identify basic child support and cash medical support separately. That wording prevents a parent, employer, or clerk from treating the medical amount as part of the basic support payment.
The calculation is only as reliable as the documents behind it. A hearing record should include the pay stubs, tax information, insurance allocation, and applicable order. If a permitted tax deduction or the child's allocated premium changes, net resources and the support amount change with it. The practical task is to classify each line before applying the percentage, not to accept the pay stub's net-pay figure automatically.
When Texas Courts Deviate From the Guidelines
Texas Family Code §154.123 permits a court to consider whether guideline support would be unjust or inappropriate under the circumstances. The guideline amount remains the starting point, but the judge may evaluate the child's proven needs, the parents' financial resources, possession arrangements, medical expenses, educational costs, and other relevant facts.
A deviation requires evidence, not a general statement that the household is expensive. The parent seeking a different amount should connect each requested adjustment to the child's needs or to the statutory circumstances.
Evidence that can change the result
A judge may give serious attention to:
- Extraordinary medical needs: Uninsured treatment, recurring therapy, or other healthcare expenses may justify an order beyond ordinary cash medical support when supported by invoices and reliable testimony.
- Educational or developmental costs: School records, tuition documents, evaluations, and provider statements can show needs that the guideline figure doesn't address.
- Proven needs above the guideline amount: The parent must identify actual child-related expenses rather than describe a preferred lifestyle in general terms.
- Ability to contribute: A parent's documented resources may support a higher award when the child's needs are established.
- Possession patterns: Extended periods with the paying parent can be relevant, but possession doesn't automatically eliminate support.
- Household disparity: A significant difference between households may affect the court's assessment of how the child's needs should be met.
Union dues that already qualify under §154.062 have reduced the net-resource base before the guideline calculation. A parent generally won't obtain a further downward deviation just by listing additional fixed expenses, such as optional insurance, consumer debt, or retirement savings.
A deviation hearing is won with child-specific proof. Bank statements, therapist invoices, school records, insurance documents, and a coherent explanation are more useful than a long list of personal bills.
Filing, Service, Hearings, and Modifications
Texas parents generally use one of two routes. The Office of the Attorney General can establish or review support administratively, while a private court case proceeds through the district or county court handling the family matter. Both routes still depend on accurate net-resource evidence.
The OAG route
A parent may initiate a request for review with the OAG online or by mail. The state instructs a parent to submit only one request because duplicate submissions can delay processing. The matter may proceed through the Child Support Review Process or to a court hearing, but only a court can approve a final change to the support amount.
The OAG process may address income withholding, medical support, and possession provisions used in the applicable case. Texas Family Code §154.063 addresses income withholding. A parent should gather recent pay stubs, tax records, union documentation, and insurance records before responding to a review notice.
The private litigation route
In private litigation, the parent files an original petition, motion, or modification pleading, serves the other parent as required, and presents evidence at a temporary or final hearing. Discovery commonly includes:
- Payroll records: Pay stubs, W-2 forms, tax returns, and bonus records.
- Union records: Membership status, collective bargaining language, authorization forms, and monthly dues history.
- Insurance records: Enrollment forms, premium breakdowns, explanations of benefits, and proof of actual payment.
- Child-expense records: Medical, educational, therapy, and childcare documentation when a deviation is requested.
A modification usually requires a material and substantial change in circumstances under the applicable modification provisions, or another statutory basis. The same net-resources framework applies to the new order. A temporary support order pendente lite operates during the case; it isn't the same as the final order entered after the court evaluates the evidence.
A request for review doesn't itself change the amount being withheld. Until a court approves a modification, the existing order generally remains enforceable. Parents should keep paying under the current order while the case is pending unless a court directs otherwise.
Common Questions Texas Parents Ask
Do voluntary union dues reduce support like required dues?
Usually, no. Section 154.062 focuses on dues required as a condition of employment. The pay stub should be reviewed alongside the collective bargaining agreement to separate required dues from political contributions, optional benefits, and other charges. A court order may be needed when the parties dispute the classification.
What if my private policy covers my new spouse and stepchildren?
The deduction is limited to the child's allocable share of the premium. The parent must show who is covered and what amount was paid. The plan documents and payroll records usually answer this question more reliably than the total family-premium label.
What happens if I change jobs and lose union membership?
The deduction may stop when the employment condition stops. The parent should preserve the old and new pay stubs and disclose the employment change promptly. If the change affects an existing order, a modification requires the appropriate filing and court approval.
Do back pay, overtime, or a union signing bonus count?
Recurring overtime and other resources may affect the calculation. Back pay or a signing bonus requires careful classification and may need to be averaged or addressed through the court's income analysis. Bring the payment records to a pay-stub review instead of assuming one treatment applies to every special payment.
Texas Child Support Law Office of Bryan Fagan handles establishment, modification, enforcement, and defense of Texas child support orders, including disputes over union dues, insurance proration, guideline caps, and complex income records. Visit Texas Child Support Law Office of Bryan Fagan to arrange a focused review of your pay stubs and prepare the evidence needed for the next OAG review or court hearing.
