I hope I can explain this clearly.
For 2016 tax year, ex and I have an agreement saying:
January - June CS is $1660 per month
July - December CS is $3500 per month (as we updated July 1)
So, ex pays his child support by bank transfer usually a day or two prior to the first of the month.
So, January 1 2016's payment ($1660) was received by me on December 28/15.
All the other month's were paid a few days before the first.
January 1 2017's payment ($3500) was received by me on December 29/16.
So ex says we should calculate for when the payment was actually received for tax purposes. Therefore the $1660 received on Dec 28/15 would be on 2015 taxes even though it is a payment meant for January 1, 2016. He says that this makes the most sense as CRA follows this procedure with the income reported on T4's as well. CRA counts the year when the payday is, not the hours/date you worked.
I think that it is based on our agreement and therefore the few extra days mean nothing.
Ultimately I couldn't care less as it doesn't change my taxes. He is freaking out, being audited and has requested a proper receipt from me. I completed one based on the actual payments on the agreement and filed that on my taxes. He is the one arguing about the extra $2,000.
Anyone know the law? Is it year the actual money was received or when the payment is intended for?
Thanks.
For 2016 tax year, ex and I have an agreement saying:
January - June CS is $1660 per month
July - December CS is $3500 per month (as we updated July 1)
So, ex pays his child support by bank transfer usually a day or two prior to the first of the month.
So, January 1 2016's payment ($1660) was received by me on December 28/15.
All the other month's were paid a few days before the first.
January 1 2017's payment ($3500) was received by me on December 29/16.
So ex says we should calculate for when the payment was actually received for tax purposes. Therefore the $1660 received on Dec 28/15 would be on 2015 taxes even though it is a payment meant for January 1, 2016. He says that this makes the most sense as CRA follows this procedure with the income reported on T4's as well. CRA counts the year when the payday is, not the hours/date you worked.
I think that it is based on our agreement and therefore the few extra days mean nothing.
Ultimately I couldn't care less as it doesn't change my taxes. He is freaking out, being audited and has requested a proper receipt from me. I completed one based on the actual payments on the agreement and filed that on my taxes. He is the one arguing about the extra $2,000.
Anyone know the law? Is it year the actual money was received or when the payment is intended for?
Thanks.
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