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Guide

Child Support for Self-Employed Parents

Why 1099 and business income is handled differently in Texas.

If you or the other parent is self-employed — a contractor, freelancer, gig worker, or business owner — the Texas guideline percentages are the same, but the net resources they're applied to are calculated differently. Two things change: how income is defined, and how taxes are deducted.

1. Self-employment income is net of expenses

Under Family Code §154.065, self-employment income means gross receipts minus the ordinary and necessary expenses required to run the business. You don't use the top-line revenue of the business; you use what's left after legitimate operating costs.

Important: "ordinary and necessary" for child support is not identical to what the IRS allows. Texas courts can add back deductions that reduce taxable income but don't reflect real out-of-pocket cost — most commonly depreciation, and sometimes a portion of vehicle, travel, meals, or home-office write-offs. The goal is the parent's true ability to pay, not the tax return's bottom line.

2. Self-employment (SECA) taxes are higher

A W-2 employee pays 6.2% Social Security and 1.45% Medicare; the employer pays a matching half. A self-employed person pays both halves — the self-employment tax:

TaxEmployee (W-2)Self-employed (SECA)
Social Security6.2%12.4%
Medicare1.45%2.9%

SECA tax is figured on about 92.35% of net self-employment earnings (Social Security still stops at the annual wage base, $184,500 for 2026), and one-half of the SE tax is deductible when computing federal income tax. The Attorney General publishes a separate self-employed tax chart that bakes all of this in. The practical effect: for the same "take-home," a self-employed parent's net resources are usually a bit lower than a W-2 parent's because their payroll-type taxes are higher.

How to estimate it on this site

The calculator's "Estimate from gross income" mode assumes a W-2 employee, so it isn't exact for the self-employed. The reliable approach for self-employment income is:

That applies the correct guideline percentage, the $11,700 cap, and the low-income rule to a number you control.

Already know your net resources?
Use the direct-entry mode for an exact guideline figure.
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What courts look at with self-employed parents

Because there's judgment involved, self-employment cases are where a good estimate and a family-law attorney matter most.

Related guides

⚠️ General information, not legal advice. Based on Texas Family Code §154.065 and the Office of the Attorney General 2026 self-employed tax chart. Self-employment cases are fact-intensive; consult a licensed Texas family-law attorney and, where needed, a tax professional.