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Does anyone have the formula and rules for calculating propotionate to income in regards to section 7 expenses. I heard it was suppose to add support I paid to the CP's income when calculating. I had a case conference back in June 2008 and am still waiting. I was sent a trial record from her recently with no trial date yet?? She also now has included a new affidafit of all these new expenses she never brought up in the case conference. Just confused with the process I thought I knew. Can she actually add a new affidavit with new information not brought up before. She is still asking for orthodontics which are 100% paid through both our plans but still hasn't submited a claim yet. Thousands of dollars not claimed seems fishy to me.
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It's simple. Take the income on line 150 of your respective tax returns, and add it together to get your "total income." Then to get your proportionate share, divide your income by the total income. Voila!Originally posted by enoughalready View Post
Example:
Parent A's income: 40,000
Parent B's income: 60,000
Total income: 100,000
Therefore...
Parent A's proportionate share: 40,000 / 100,000 = 40%
Parent B's proportionate share: 60,000 / 100,000 = 60%
Simple. -
The formula is that you add your incomes, then determine what percentage each income is of the total. An easy example, one party earns $60k the other earns $40k so they split the expenses 60%-40%.
Things that make it more complicated: For Child Support you go by the basic line 150 on the tax assessment. For Section 7 you include all other money coming in (except Child Support) for example Spousal Support or Child Tax Credit or GST refund.
The cost of the expenses should consider the tax refunds they create. Most section 7's are deductable, like daycare, after school programs, summer camp which all qualify as child-care for deductions. Post-secondary education can also create a deduction.
Medical and Dental costs over $100 can be claimed. That is if they were actually paid and not refunded by a benefit plan. So you can claim the deductable or anything over the yearly limit of your plan. If it is paid 100% by both plans then it is not a special expense.
As far as her affidavit goes, let her submit nonsense like that, and then point out that she is committing fraud by trying to claim an expense that was covered by benefits.Comment
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Thanks everyone. In regards to the dental I think she figured out I caught her and that is why she is not filing for trial. I think she claimed the amount on her income tax or her new husbands as he doesn't work. I'm certain they got a good chunk back. Makes no sense to sit on thousands of dollars in claims when it is covered 100%. She was asking for cash for the dental. So when or does the childsupport I pay get added as income into the calculations. I'm certain it does somewhere any ideas.Comment
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It doesn't really. Child support (in theory) is to pay for the child's ordinary living expenses, housing, food, clothes, transportation. The Special Expenses are "special", things that aren't considered part of the basic cost of living, so you pay those separately. That is why most Special Expenses are items that can end up being tax deductable. (Sports teams are a grey area, but often they get included. Think of it as working toward a scholarship or coaching career, etc. even though they aren't deductable.)Comment
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