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hi my name is Mac peewee and this is a YouTube channel for your chat spoiler calm I'm an attorney at pure - or CSP LLC and I'm also a mediator and this is a law office that's located in Houston Texas today I wanted to go over how to calculate child support manually there's a lot of people who go online and plug in child support numbers and get in accurate information they get wrong answers and I've seen some of these tools that are on the internet giving people bogus advice so today I wanted to go through how to manually calculate child support by using a formula and using the tax chart that's available for free on the internet at the Texas Attorney General's website but first this information is for educational purposes only and should not be construed as legal advice alright so in this hypothetical we're going to assume that this there's a father and we'll call him John Doe John Doe has two kids one kid lives with him at his home who he supports directly the other kid he has a court order where he's supposed to pay child support and so we're going to calculate his child support based on his average monthly gross income all right so the in this scenario we're going to assume that John Doe is gonna be making an average monthly gross income of five thousand three hundred thirty two dollars and 59 cents okay that is our assumption that he's going to be bringing in each month five thousand three hundred thirty two dollars and fifty nine things gross now how I came up that number I can't really help you out with that'll be on you but basically just get an average of what the obligor makes each month to start things off okay so for example if an obligor makes sixty thousand dollars a year well to get the average gross income each month it's simple just divided by 12 to get the monthly average gross income each month or if you have a tax return for the end of the year you have a gross sum for the whole year again just divided by 12 to get an average I may do another video in the future on how to get to this average gross income each month but this is a place you start you have to have this number to begin this process okay so let me go through some of what I have here on the board so that you can kind of see what we're working with today the first thing is we need to know his gross income again the average monthly gross income we had that here five thousand three hundred thirty two dollars and 59 cents then we're going to be ducked from that the number known as the lower gross that number will be listed on the tax chart that's provided by the Texas Attorney General's Office then we're going to multiply that answer by the difference between the higher net and the lower net amounts you again find on the tax chart provided by the Attorney General's Office we're going to define that product by $100 also known as moving the decimal back two spaces then finally we're going to add that answer to the lower net that we find on the tax chart provided by the Attorney General and that will give us our net income each month so we can go from the gross income five thousand three thirty two and fifty nine cents and get to the net income by the tax chart taking out Social Security Medicare and FICA then we'll take that net income and we're going to be duct from that the obligor scrat's and by credits I mean specifically three things any state taxes you might pay for example some things have state taxes not just federal taxes in Texas we don't really have seen in so we don't worry about that too much also we have to give him credit for any union dues he might pay each month in Texas again most people aren't in unions however there are people who are police officers fire fighters teachers who do pay union dues and so we need to make sure we give them credit for the monthly union dues that they pay and finally we have to give them credit for the cost of insurance this is probably the most popular credit than the obligor is going to get and so instead of lis going to be the cost of health insurance that he provide each month or that he pays to the obligee to provide the insurance for the child also remember effective September 2018 he's also going to be getting credit for dental insurance as well so anyway we again take the net income that we receive over here we deduct from it subtract from it the credits that he gets and we arrived at our adjusted net income and it's this adjusted net income that we will take over here and multiply it by the percentage by the correct percentage that we find on the tax chart and everyone knows about this tax chart but one child for example the tax card says it is 20 percent of your adjusted net income for 3 children it is 25 percent of your adjusted net income for these three children 30 percent for children 35 percent 5 children 20 percent and it caps their a 20 percent now if he has children living with him at home or other children he might support them other court orders of course he'll get a credit on the percentage and that's why in our scenario John Doe has one child living at home and one child who he's gonna be paying Jocelin for through a court order so on the tax chart John Doe is going to pay seventeen and a half percent of his adjusted net income and that will produce the final answer child support monthly child support for him to pay to the obligee so we can go from the gross income here in this scenario 5303 2050 nine cents and we can get to the accurate monthly guideline child support down to the penny as long as we are using the correct tax chart information in the correct percentage all right now I'm going to be doing this example on the board manually but first I'm going to show you the texture that I'm going to be using so please stay tuned for this quick minute explanation of the tax chart and then I'll be right back to actually do the calculations all right so here we go on the tax chart so I'm on the computer and I'm going to the Internet and I have here open the Attorney General of Texas's website where it lists the current tax charts and it actually lists tech charts going back years but I'm gonna click on the most recent 2018 revised tax chart and when I do it's gonna take me to this page where it basically states that it's effective February 2018 this is because of the Trump tax cuts that had changed the numbers from January 1st 2018 and on the employed persons 2018 revised tax chart I'm going to scroll down to right about here where the numbers that I'm seeking will fall remember that in my scenario John Doe makes exactly five thousand three hundred thirty two dollars and 59 cents per month on average and so I'm going to look at the list and fine with that number falls in the first column I see the gross this column is gross monthly gross wages next column Social Security last column is Medicare and last column is tax and then finally the last column is net monthly income and so scrolling down here five thousand three hundred thirty-two and 59 cents falls in between $5,300 gross and $5,400 gross and then after the taxes are taken out it will produce a number in between these two net incomes four thousand twenty six ninety three and five four thousand three fifty seven twenty eight now I'm going to screenshot this and I actually have for you I plugged in where I list the defined terms so again the five thousand three hundred dollars is the lower gross the four thousand to 86 93 cents is the lower net in the four thousand three fifty seven and twenty eight cents is the higher net and I'm doing this because the scenario gives me five thousand three thirty two and fifty nine cents gross income per month and that's going to fall in between these two rows five thousand three hundred and five thousand four hundred hello again so we're here back at the board and we're going to actually calculate the child support based on the numbers that we obtained from the tax target put out by the attorney general's office so again going back over our terms gross income okay in our scenario we have the gross income as five thousand three hundred thirty two dollars and fifty nine cents and we're going to subtract that from the lower gross that's on the tax chart and on the tax chart that lowered gross value is five thousand three hundred dollars even they were going to multiply that by the difference between these two numbers the higher net in the lower net okay that's on the tax target so once we calculate that we're going to multiply those whatever we're going to take that product divided by 100 also known as moving moving the decimal back two spaces and then we're going to add that to the lower net the lower net income value that we already have over here to get our net income so let's go ahead and calculate this so we're going to take john doe's average monthly gross income five thousand three hundred twenty two dollars and fifty nine cents we're going to subtract that from the lower gross income that's on the tax part of fifty three hundred dollars even and we are going to get thirty two dollars and fifty nine cents we're going to take that number we're going to multiply it by the difference here so we're going to take four thousand three hundred fifty seven dollars and twenty eighths inch which is our high net income on the tax charge and we're going to subtract it from the lower net income on the tax part from four thousand two hundred eighty six dollars and ninety three cents and we're going to get seventy dollars and 35 cents we're going to multiplying these two numbers and divide it by 100 or just move it this one back two spaces they were going to finally add it to the four thousand two hundred eighty six dollars and ninety three cents all right let's go ahead and do this thirty two point five nine times seventy point three five is I'll go ahead and do this two thousand two hundred ninety two dollars and seventy cents we're going to divide that number by 100 and now this whole section will be twenty two point ninety two ninety three roundup and we're going to add that to the forty to eighty six point ninety three plus four to eight six point ninety three equals four thousand three hundred nine dollars and 86 cents this is our final net income this is the number we've been waiting for we went from a gross of five thousand three hundred thirty two dollars and fifty nine cents and it resulted in the net income of four thousand three hundred nine dollars and 86 cents this net income is not on the Texas Attorney General tax charge we have to do it manually through extrapolation to get to this number now that we have our monthly net income we're going to take that number and continue with that number over here so our net income is what we're going to then take and deduct from it the credits that the obligor is entitled to state taxes union dues and medical insurance so four thousand three hundred nine dollars and eighty six cents let's subtract from that let's say union dues is nothing as a state taxes is nothing but let's say he pays $100 per month in insurance costs for the child so we're going to take our four thousand three hundred nine thousand eighty six cents we're going to deduct from it one hundred dollars to get in adjusted net of four thousand two hundred nine dollars and 86 cents and this number is what we've really been waiting for because now we can take this number and multiply it by the correct percentage and what percent are we going to use remember on the percentage charge when an obligor has to pay child support for one child is twenty percent of his net income for two each within his twenty five percent four three two minutes thirty percent for four children it's 35 percent for five or more it caps at forty percent but if he has other children living with him over whom he's paying child support already to another court order and he's going to get a credit for that mother mouths Pyaasa feet in on scenario remember John Doe has one child living at home with him and he has another child who he has to be challenged before they were calculating here so on the tax chart says he has one child before the court and one child living with him they will be seventeen and a half percent you can find this percentage chart on our blog side during transformer com4 slash calculate you can also find it on the internet if you just google the Texas child support percentage chart for the number of children that the obligor has to support alright so we're going to take the four thousand two hundred nine dollars and eighty six cents net and we're going to multiply that by the correct percentage so 4200 will commit a mistake year four thousand two hundred nine dollars and eighty six cents net and we're going to multiply that by 17 and a half percent and that gives child support of seven hundred thirty six dollars and seventy two seventy three since that's average up to the nearest pain so that is how you get final child support from a gross income of five thousand three hundred thirty two thousand fifty nine cents you can go from that gross income all the way to a monthly child support amount of seven hundred thirty six dollars and 73 cents now remember I use the tax chart that's free online but on the Attorney General's website I use the percentage chart that is available for free also online is on our website as well and I use a calculator that's it I need to use any other tools but I was able to get correct child support of seven thirty six point seventy three each month from the growth of 5322 and fifty nine cents now I use the 2018 revised tax chart this is different from the January 1st 2018 tax cut that came up earlier this year we're now right now in June 2018 the reason it's different is because of a trump tax cuts where the tax rates change for a lot of people around the country so make sure that you're always using the correct tax chart and as long as you have the correct text right the quick percentage story and the a calculator you'll be able to follow the formula and calculate correct child support down to the pain I hope this helped a one last tip make sure that the tax are using is either for an employed person or a self-employed person because the tax rates do change depending if you work for yourself or if you are a w-2 works for a company for somebody else all right again this is Mack peer-review probably these videos helpful please make sure you subscribe and thank you for watching