Net Resources
Definition: Net resources is the income figure Texas child support guidelines are applied to, defined in Family Code § 154.062 as a parent’s income from wages, self-employment, rental, and other sources, minus federal taxes, Social Security, union dues, and the child’s health insurance premium.
Also called: net monthly resources, net income for child support
What net resources means in Texas
Net resources is the number the child support percentage is multiplied against. Texas Family Code § 154.062 defines it in two steps. First, it lists what counts as resources: all wage and salary income, including commissions, overtime, tips, and bonuses; interest, dividends, and royalties; self-employment income; net rental income; and all other income actually received, including severance, retirement, pensions, trust income, annuities, capital gains, Social Security benefits other than supplemental security income, unemployment, disability and workers’ compensation, gifts, prizes, spousal maintenance, and alimony.
Second, it lists what gets subtracted: Social Security taxes, federal income tax based on a single person claiming one personal exemption and the standard deduction, state income tax, union dues, and the cost of health and dental insurance and cash medical support for the child. Section 154.062(c) excludes the return of principal, accounts receivable, TANF benefits, and payments for foster care of a child.
How it works in practice
The Office of the Attorney General publishes a tax chart each year under § 154.061 that converts gross monthly wages to net resources for an employed parent, which removes most of the arithmetic. For a salaried parent with a W-2, net resources are usually not in dispute. The chart is built on a single filer with the standard deduction, so the parent’s actual filing status does not matter.
Self-employed parents are harder. Section 154.065 allows the deduction of ordinary and necessary business expenses but not depreciation, personal expenses run through the business, or other deductions the court finds inappropriate. If a parent is intentionally unemployed or underemployed, § 154.066 lets the court base support on earning potential rather than actual income. When no reliable income evidence exists, § 154.068 presumes income at the federal minimum wage for a 40 hour week.
Why it matters in your case
Every dollar of net resources, up to the $11,700 cap, moves support by 20 to 40 cents depending on the number of children. That makes the definition the center of most support disputes involving business owners, commissioned salespeople, and parents whose income has recently dropped. Tax returns, profit and loss statements, and bank deposits are the proof. A parent who hides income risks a finding of intentional underemployment and an order based on what the court believes they could earn.
Frequently asked questions
Does a new spouse's income count toward net resources in Texas?
No. Section 154.069 states that the court may not add any portion of a new spouse's net resources to the paying parent's net resources, and may not reduce a parent's obligation because of a new spouse's income. Only the parent's own resources are counted.
Are bonuses and overtime included in net resources?
Yes. Section 154.062(b) expressly includes overtime pay, tips, bonuses, and commissions as resources. When these amounts fluctuate, courts typically average them over the prior year or more to arrive at a monthly figure. A parent whose bonus is a large part of compensation can expect it to be counted.
How is net resources calculated for a self-employed parent?
Gross receipts minus ordinary and necessary business expenses required to produce that income, under § 154.065. Depreciation, personal expenses paid by the business, and excessive write-offs are added back. Courts often look at bank deposits and lifestyle alongside tax returns when the reported figures seem low. The resulting net is then reduced by the standard tax deductions.
Cite or link to this definition
This glossary is free to cite. Please link to the page rather than copying the full entry, and send corrections to SMB Law, PC.
Citation
"Net Resources." Texas Legal Glossary, SMB Law, PC, law-smb.com/legal-glossary/net-resources/. Updated October 2026.Link HTML
<a href="https://law-smb.com/legal-glossary/net-resources/">net resources (Texas)</a>Talk to an Austin family law attorney
Questions about how net resources applies to your divorce or custody case? Call (512) 561-5003 or request a free consultation. SMB Law, PC has handled Travis, Williamson and Hays County family cases since 2010.
This entry explains Texas law in general terms and is not legal advice for any specific situation. Statutes and case law change; the date above reflects the last review.