For New Braunfels parents, almost every child support disagreement comes down to one question: what is the paying parent’s real income? Texas calls that figure net resources, and the guideline percentage is applied to it. Get net resources right and the rest of the calculation usually follows. In Comal County, where many families earn a mix of salary, overtime, side work and business income, defining net resources is often where a family law attorney earns their keep.
What Texas Counts as Resources
Texas Family Code § 154.062 defines net resources broadly. The starting point is nearly every dollar a parent receives on a regular basis, including:
- Wages and salary, including overtime, tips, commissions and bonuses
- Self-employment income from a business, partnership or contract work
- Interest, dividends and royalties
- Net rental income, meaning rent received minus reasonable expenses
- Retirement and pension income, annuities and trust income
- Capital gains
- Social Security benefits, other than Supplemental Security Income
- Unemployment benefits, disability benefits and workers’ compensation
- Spousal maintenance or alimony a parent receives
- Gifts and prizes
Because the list is so broad, a parent who earns a modest salary but owns rental homes around Canyon Lake, or who drives rideshare on weekends, may have net resources well above what their base pay suggests.
What Is Left Out
Texas law also excludes certain items from resources. These include:
- Return of principal or capital, such as money from selling an asset at cost
- Accounts receivable, which have not yet been collected
- Benefits from needs-based public assistance programs, such as TANF
- Supplemental Security Income
- Foster care payments
- Child support the parent receives for other children
The line between income and a return of capital can be important for parents who sell property or business assets during the case.
Allowed Deductions
After adding up resources, Texas subtracts only a few items to reach net resources:
| Deduction | Notes |
|---|---|
| Social Security and Medicare taxes | Based on actual earnings, or self-employment tax for business owners |
| Federal income tax | Calculated as if the parent were single and claiming one personal exemption and the standard deduction, not the parent’s actual return |
| State income tax | Not applicable to most Texas earners |
| Union dues | Only if actually paid |
| Child’s health insurance premium | The portion for the child in this case |
| Child’s dental insurance premium | The portion for the child in this case |
Notice what is not on the list. Voluntary 401(k) contributions, car payments, credit card bills, rent and a new family’s expenses are not subtracted. A parent who puts 15% of pay into a retirement plan will still have support calculated on the full pre-contribution amount.
The Office of the Attorney General publishes an annual tax chart that converts gross monthly income to net resources using these assumptions. Our child support calculator uses the same general approach to give you a starting estimate.
Self-Employed Parents
Self-employment is common in Comal County, from contractors and landscapers to real estate agents and small shop owners along the Gruene and downtown corridors. For these parents, net resources start with gross receipts minus ordinary and necessary business expenses. The court can disallow expenses that are really personal, such as a truck used mainly for family errands or meals that are not truly business costs.
Texas law also allows the court to look past expense deductions that are fine for tax purposes but do not reduce cash available to the parent. Depreciation is a common example. A business owner whose tax return shows little profit may still have substantial net resources for child support.
Helpful records for self-employed parents include:
- Two or three years of personal and business tax returns
- Profit-and-loss statements and general ledgers
- Business and personal bank statements
- Loan applications, which often state income more generously than tax returns do
Military and Benefit Income Near New Braunfels
Many families in the New Braunfels area have ties to Joint Base San Antonio. For service members, net resources typically include base pay plus allowances such as the basic allowance for housing and subsistence. A Leave and Earnings Statement is the key document. Veterans may receive disability compensation or military retired pay, which are generally counted as resources.
When a parent receives Social Security disability and the child receives a dependent benefit on that parent’s account, Texas law gives the parent credit for the child’s benefit. If the child’s benefit equals or exceeds the support owed, the parent may owe nothing more each month. This credit is often overlooked.
Unemployed or Underemployed Parents
Sometimes a parent’s income drops right when a case is filed. If the evidence shows a parent is intentionally unemployed or underemployed, the court may set support based on earning potential rather than actual earnings. Judges look at work history, education, licenses, health and the local job market. The court can also consider the reason for a job change. A parent who leaves a job to care for a young child or to go back to school is in a different position than one who quits to avoid paying support.
When there is no reliable evidence of a parent’s income at all, Texas presumes the parent earns the federal minimum wage for a 40-hour week. That presumption is a floor, not a target. The other parent can offer proof of higher earning ability.
Proving Income the Other Parent Is Hiding
If you think the other parent earns more than they admit, Texas discovery tools can help. These include requests for documents, written questions under oath, depositions, and subpoenas to employers and banks. Courts can also draw negative conclusions when a parent refuses to produce financial records.
How Net Resources Affects Other Issues
Net resources does more than set the base support amount. It also affects:
- Whether a health insurance premium is considered reasonable in cost, covered in our medical and dental support guide
- Whether a later change is large enough to justify a child support modification
- Eligibility for, and the amount of, spousal maintenance in a divorce
For a full walk-through of the formula once net resources is known, see how child support is calculated.
Help With Income Questions in Comal County
If the numbers in your case do not add up, or you are a business owner unsure how your income will be treated, our office can help you organize the records and present them clearly. We work with parents in New Braunfels, Comal County, Guadalupe County and the Hill Country communities nearby. Call (830) 302-4071 for a free consultation by phone, video or in person. Hablamos español.
Frequently Asked Questions
Does overtime count toward child support in Texas?
Yes. Overtime is part of a parent’s resources. When overtime varies from month to month, courts often look at an average over a year or more rather than a single unusually high or low pay period.
Are VA disability benefits counted as net resources?
Veterans’ disability benefits are generally treated as resources for child support purposes in Texas, along with military retired pay. Housing and subsistence allowances paid to active-duty service members are also typically included. The details can be technical, so bring your Leave and Earnings Statement or benefit letter to a consultation.
Does my new spouse's income count toward my child support?
No. A new spouse’s income is not included in your net resources. A court might hear evidence about a new spouse’s support for the household when deciding whether to depart from the guidelines, but the spouse’s paycheck is not added to the formula.
What if the other parent is paid in cash?
Cash income still counts. The challenge is proof. Bank deposits, spending patterns, social media, business advertisements and testimony can show income that does not appear on a tax return. Formal discovery and subpoenas may be needed in contested cases.
Last reviewed November 13, 2026. General information only, not legal advice.