Quote:
Originally Posted by MsD
I am going to ask other more experienced members to clarify some points I'd like to raise:
Line 150 is the income reported to the CRA, yes? which means he cannot legally change that amount.
Same goes for your income. Unless he knows for a fact that you're hiding substantial income from other sources, what you declare on line 150 cannot be changed either.
The bigger question, for me, is the CS Guidelines. In Family Law, support is a legal right and judges will use those very guidelines to determine amounts - am I correct??
One last question, frustrated: have you tried mediation instead of lawyers?
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Line 150 is from the income tax return, yes. There is no law that states you absolutely must use line 150, it is just the most common number for most situations.
Line 150 should be taken from the Notice of Assessment after the return is filed, because CRA may insist on changes, for example disallowing an expense deduction. Line 150 can be changed after an audit. It can be changed months or years later by filing for a change to the original return, for example finding out that a particular expense could have been claimed, or finding lost receipts.
For people who are self-employed or who receive irregular bonuses, you may not want to just go with line 150. Certain expenses could be challenged like a home office or a car used for both business and personal use. Depending on the type of employment and the amount of expense, it may be worth going over it carefully with both an accountant and experienced lawyer and challenging some expenses.
For bonuses, if they are irregular, then possibly they may not be counted as income. This has to be shown and argued, not just claimed. It would be helpful for you to go through these
Child Support Worksheets and see some of the options for excluding bonuses or deducting expenses.
As far as benefits go, if it is a taxable benefit it should be included as income. If not, then you have a difficult argument. Pick your battles and don't waste thousands in legal fees arguing over a non-taxable benefit.