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If I redeem some RRSP's to take my kids on vacation is that considered income for the purpose of calculating child support?
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Yes, it counts toward your income, all T4RSP slips get included in line 129 (2011 tax year) which forms part of the amounts added to get to Line 150, which is the basis on what most child and spousal supports claims are calculated. -
Actually in can go either way, I would talk to your ex and get it in writing. Maybe if your ex knows why you took the money out, they may cut you some slack. Can't hurt to ask, but if your ex agrees, I would get it in writing.
I also found this thread:
http://www.ottawadivorce.com/forum/f...drawals-11198/Comment
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Took a bit to dig up = something I was given along the way by a member here (an accountant I believe!) Anyway this section under #17 establishes for support purposes that a one time income may not have to be declared as far as support is concerned. I was told that the regulation can apply to SS as well - as it is the regulation used to determine income levels for support purposes - any support.
There is another thread on this topic which came later and has what follows in the posts..... but here it is:
Family Law Act - O. Reg. 391/97
Pattern of income
17. (1) If the court is of the opinion that the determination of a parent’s or spouse’s annual income under section 16 would not be the fairest determination of that income, the court may have regard to the parent’s or spouse’s income over the last three years and determine an amount that is fair and reasonable in light of any pattern of income, fluctuation in income or receipt of a non-recurring amount during those years. O. Reg. 446/01, s. 5.
The one thing you should make note is the ultimate use the income went towards.... IE meeting a "one time" expense like - say lawyer fees, which for most, would be ultimately up to the judge to decide the fairest determination of final income level for that year.
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