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I just got off the phone with CRA to discuss a payment plan for previous years outstanding debt. During the conversation, and when trying to tell them that I didn't have the money to pay the amount in full at this time, we discussed my bills and ability to pay. They are sending me a statement to fill out which should show them my monthly bills and how much I have left over at the end of the month, to determine how much my repayemnt plan will be on this outsatnding debt. She rep fromCRA told me that I have to claim child support as income, even though it's not taxable. And, my ex has to also put it on his filing as something he is paying out. Why? Please tell my why this is when I've always been told it's not taxable and as such, didn't claim it as income. Any input. I'm very confused here. Thanks.
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You report everything that comes in, taxable or not. That's the law. You enter the total support payments received on line 156, including child support. This line isn't taxable. You enter the amount of taxable support payments (spousal) on line 128. It's called disclosure. -
Thanks for the reply. I had no idea and I'm a little upset with a family friend who is an accountant and who asked me specifically about this, yet didn't add to my filing in previous years. Does this mean that it will make any difference to what I get back each year ( or don't) and same for my ex? Will he benefit from paying child support on his taxes?Comment
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No it won't make any difference to either of you.Comment
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All I know is CS is not taxable but SS is. I always included the CS on my tax return. Wondered about that too. If I ever SEE any of the SS, I will include that as well.Comment
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oh my i had no idea..... oops! what about payout of equalization? Is it true too that you need to register your court orders with cra?Comment
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The equalization payment is a capital transaction and does not need to be reported for tax.
You do not have to register anything with CRA - sometimes they will request to see your agreements/court orders if they are questioning or clarifying somethingComment
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Whew, one less thing to do...
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In order for the support payor to claim the SS as a tax deduction, they must be current on their CS obligation. If they are in arrears in CS, they can't claim SS.
That would be why you have to report it...to make sure the numbers match up.Comment
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found this:
Registering your court order or written agreement
If a court order or written agreement requires payment of support for a spouse or common-law partner, it must be registered with the Canada Revenue Agency. By doing so, we are able to verify the part of your payments that is spousal support and, if applicable, the part that is child support. You will also avoid unnecessary delays and adjustments to your income tax and benefit return.
To register your court order or written agreement, follow the instructions on Form T1158, Registration of Family Support Payments. Do not include your order or agreement with your income tax and benefit return.
So you only need to register if spousal is included?Comment
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Another question: how are arrears handled? If the cs paying parent did not pay for a few months, or if they paid to catch up? Especially if other things such as daycare are included in that? How are these calculated ?Comment
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Where is DDTE when you need him!Comment
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He's happily in love..... Lol and went out and moved on and got a life! Can you imagine that? LmaoComment
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the NERVE of some people
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He was at the Lighthouse concert Friday night, had a great time I'm sure!Comment
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