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Retro-active Support when not in arrears?

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  • Retro-active Support when not in arrears?

    My ex has filed a motion to court because she believes that I/O her retroactive child support. In actuality I have overpaid by a couple thousand I have tried explaining to her numerous times about child support calculations etc...

    Will this help in anyway of her having to pay costs for me to go to court to prove I am up to date?

    She has brought forward only 4 years of my income tax. I helped her out and offered the court all of them from the beginning of our divorce. Several years worth.

    Apparently I am allowed to deduct employment expenses off of line 150. Which means I have overpaid even more in child support. What about severance pay?

    I am trying to do what is fair and right when it comes to supporting my children. I can't help that she doesn't understand the guidelines. So I have to pay legal fees to get a judge to explain it? She is seeking costs from me.

  • #2
    what sort of "employment expenses" are you deducting? As far as I know, you have to (for CRA) complete a form T220E(15) Declaration of Conditions of Employment. That may help your claim in family court that employment expenses are legit but its not guaranteed.

    Why do you not go through FRO and let your ex bitch to them? That's what they are there for (aside from a collection agency for courts).

    Comment


    • #3
      We would have to go through MEP.

      The worksheet 1 on justice.gc.ca shows how to calculate income used for childsupport purposes. It allows for deductions of employment expenses from line 229 which I have.

      Either way, even if I didn't deduct them, I am still not in arrears. And the bulk of the court issue is Section 7 extra-ordinary expenses for extracurricular activities.

      My ex is bringing forward a stock pile of them I was never told about nor asked to contribute to. 90% of the expenses are NOT extraordinary in anyway. The rest I will pay willingly because had I been asked Or known they existed I would have paid them.

      I think she wants a specific list of sports added to the divorce judgement so she can throw every receipt she can to maintenance and make me pay...how does that work when the expenses are $30 reg fees?

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      • #4
        A T4044 is used for my employment expenses and are filed by a chartered accountant

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        • #5
          Maybe I am wrong but my accountant says they use this deduction all the time for calculating support. That's why I am wondering if anyone might know forsure and point me in the right direction if I am wrong.

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          • #6
            What, specifically, are the expenses you are trying to use to reduce support?

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            • #7
              I am not "trying" to reduce support. Just never knew about the Worksheet 1 on www.justic.gc.ca that helps calculate your income for Child Support. The expenses are for Meals and lodging. I am not trying to fight the issue either just questioning if it is legit.

              My ex is nickel and dimming me for sports expenses i have never been asked to contribute to nor even knew the expense existed. From 2011-2014 the sports fees total $700...I am first arguing the fact I was never asked for contribution to these nor seen the receipts until now as well as the expenses were stock piled. I do not think $700 in a matter of 4 years can be extraordinary.

              If I am being taken to court for retroactive support and section 7 sports and being nickel and dimmed for these expenses I want to make dang sure my calculations are correct and if I have overpaid then she can see I have in a way contributed to these expenses already.

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              • #8
                When did she start this court action because in some cases the court will not allow such a long retro active period.

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                • #9
                  She filed a motion in my birthday in may. But asked for financial disclosure last oct.

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                  • #10
                    Have you provided disclosure throughout? Is her motion just for support? Has anything changed? Have you been attempting to update accordingly?

                    I ask because my partners ex filed a motion to change (not a motion for support) to continue support for kids still in school. As part of that she is requesting a recalculation of cs for the last three years AND s7 expenses she has no proof of and did not seek permission for. His response is that he had been keeping her apprised of his income changes, had provided her with proof of these changes and she refused to work on amending the original agreement. Also provided calculations for proper s7 expenses he is responsible for and advised she is claiming non s7 expenses. This is early though so I have no info other than what the lawyer has said.

                    You may want to seek legal advice on your response rather than getting into the weeds on calculation. What expenses are used for tax calculations are not necessarily used for child support calcs. Cases in point include truck drivers who make $150,000 but reduce their income to $20,000 with expenses. Several cases on canlii have the judge adding expenses back in to the income.

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                    • #11
                      I don't make that much lol but yah I have not deducted my expenses just was inquiring about it.

                      I have disclosed and asked how she would like my income tax return in 2014 with her asking what I made me telling her it was more and support would go up and asked if we wanted to do a 3 yr average due to fluctuations she told me to keep my support the same. In 2015 my income was much lower I did not disclose but continued to pay the same from the year prior because of shorting the support. This year it was emailed to her and again made much less so will continue to pay the same making up for the 2014 when she told me to keep it the same. All other years prior were disclosed through lawyers.

                      My increase in 2014 was mostly severance pay.

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                      • #12
                        Apparently I am allowed to deduct employment expenses off of line 150
                        It depends on the expense. Generally, yes they are deducted - but if they are gratuitous, CRA accepting them does not guarantee the court will for child support.

                        Ie, if you claim 90% of your vehicle as an expense, CRA may accept it, the court may only allow a 30% (or 50%, or some other number).

                        What about severance pay?
                        Generally, this is a payment that replaces income and therefore your income to calculate child support includes the severance pay.

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                        • #13
                          I am also not arguing that severance pay be deducted but arguing it should not been an indication of a significant increase in income, as it was a one time occurrence.

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                          • #14
                            Severance Pay

                            This is indeed a one time expense which will likely appear on Line 130 (Other Income) on your tax return. The proper treatment is to exclude it when its paid in a lump sum. However your regular income should be extrapolated out which it sounds like you are ok with. You just don't want it to look like your income increased. It could look like that because the severance payment plus your regular pay reflects income over a one year period.

                            This is the third time today I can give our software information. Here it is on Employment Expenses which should help you.

                            Employment expenses (Sch.III, s.1)
                            Input the party's tax deductible employment expenses (including GST/HST) that qualify as an adjustment under Sch.III, s.1 of the CSG (T1, all or portion of Line 229. Note that the software will automatically deduct these employment expenses from the party's annual income in the determination of the party's Guidelines Income and child and/or spousal support (CSG, Sch.III, s.1).
                            IMPORTANT: If there are tax deductible employment expenses that do not qualify as an adjustment under Sch.III, s.1 of the CSG, input these expenses under "Employment expenses (not Sch.III, s.1)".
                            Certain expenses paid to earn income are tax deductible if the following two conditions apply:
                             the employment contract required the party to pay them;
                             the party did not receive an allowance for the expenses, or the allowance received is included in the party's income.
                            Note that most employees cannot claim employment expenses.
                            The Income Tax Act (par.8(1)) provides that certain employees are entitled to deduct employment expenses from their T1, Line 150 income. The CSG similarly allow these expenses to be deducted (CSG, s.16; Sch.III, s.1) in the calculation of the party's Guidelines Income:
                             teachers' contribution to a Teacher's Exchange Fund (maximum $250/year) (CSG, Sch.III, s.1(b));
                             railway employees’ expenses for meals and lodging (must have Form TL2, Claim for Board and Lodging signed by his/her employer) (CSG, Sch.III, s.1(c));
                             sales expenses; salespersons are hybrid employees/self-employed, and optionally, may deduct travel expenses only, or sales expenses including advertising, entertainment, promotion, auto and travel expenses, employed sales help, and in some cases, a home office (CSG, Sch.III, s.1(d));
                             transport employees' expenses; employees tranporting goods and/or passengers may deduct their lodging and part of their meals while away from home (CSG, Sch.III, s.1(e));
                             travel expenses, including applicable meal and lodging, if employee travels and is required by contract to pay for his/her own food and lodging (CSG, Sch.III, s.1(f));
                             motor vehicle travel expenses, if employee travels and is required by contract to pay for his/her own automobile expenses (CSG, Sch.III, s.1(f.1);
                             dues and other expenses of performing duties required by employment contract (Note: do not include any union, professional or like dues that have already been input as a tax deduction under "Union, professional or like dues") (CSG, Sch.III, s.1 (g));
                             motor vehicle and aircraft costs, including applicable interest and capital costs, for vehicles required by the party in the performance of their duties (CSG, Sch.III, s.1(h));
                             CPP contributions and EI premiums paid by the party on behalf of an individual employed by the party as an assistant or substitute. (Note: do not deduct the employed party’s own CPP and EI) (CSG, Sch.III, s.1(i));
                             salary reimbursement for a period when the party did not perform duties and therefore had to payback income (CSG, Sch.III, s.1(j));
                             forfeited amounts under an applicable salary deferral arrangement (CSG, Sch.III, s.1(k));
                             musical instrument costs, including applicable capital, insurance, rental and maintenance costs for an instrument required by the musician party in order to fulfill his/her duties (CSG, Sch.III, s.1(l));
                             artists' employment expenses pertaining to earning an income from a dramatic, musical or literary work; artist may need to be a member of a certified professional artists’ association (CSG, Sch.III, s.1(m)).

                            Employment expenses (not Sch.III, s.1)
                            Input the party's tax deductible employment expenses (including GST/HST) that do not qualify as an adjustment under Sch.III, s.1 of the CSG (T1, all or portion of Line 229.
                            IMPORTANT: If there are tax deductible employment expenses that do qualify as an adjustment under Sch.III, s.1 of the CSG, input these expenses under "Employment expenses (Sch.III, s.1)". For a full list of what employment expenses qualify as an adjustment, see the help under "Employment expenses (Sch.III, s.1)".
                            Other employment expenses that do not qualify as adjustments under CSG, Sch.III, s.1 include:
                             legal fees paid to collect or establish a right to salary or wages (less any amount awarded in respect of those fees).

                            Comment


                            • #15
                              Yes I am a transport employee with meals and lodging on line 229 of each return. I have never deducted those and always used line 150 for support. I will be deducting them starting now. I am not about to go back the past 5 years to further stir the pot.

                              Thank you for that information. I found it all this afternoon and I am attaching that to my proposal to settle.

                              Comment

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