Hypothetical question: If one were to "roll up their sleeves" and burn the candle by moonlighting at McDonald's to help dig themselves out of the hole that their ex left them in (ie: pay legal bills and debts), does the moonlighting job count towards support support payments?
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Support Payments on Moonlighting jobs?
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Originally posted by LovingDad1234 View PostHypothetical question: If one were to "roll up their sleeves" and burn the candle by moonlighting at McDonald's to help dig themselves out of the hole that their ex left them in (ie: pay legal bills and debts), does the moonlighting job count towards support support payments?
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You don’t get consent on this type of income. You can only argue for the removal of a one time payment like withdrawing RRSP funds to pay a lawyer or in my husbands case his RRSP rollover when he lost his job.
Income is income and if it gets reported on line 150 it’s fair game for income calculations. If it doesn’t go on your taxes, it’s not income. Infer what you want from that.
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Originally posted by LovingDad1234 View Post...does the moonlighting job count towards support support payments?
What is "support support"?
Did you mean to say child support? Or spousal support?
Child support would just be based on your income, so yes, it would be adjusted for an increase in income. No question there.
I'm not sure spousal support would be as straight-forward. If spousal support, what does your current order/agreement say in regards to this? Usually spousal support is "determined", and if there is no "adjustment" mentioned in the order or agreement, I think it would need to be "revisited". I would not automatically adjust spousal support, unless the order/agreement already specifically called for that.
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Originally posted by Abba435 View PostA judge recommended this very thing in a case conference.
She recommended to reduce child support on consent to reflect direct costs resulting from unconsented actions by my ex.
Before that I thought CS was untouchable too.
Thats different. In cases where there are access costs then yes you can agree on consent to reduce it to cover those costs but again you have to have a judge sign off on it.
In OP case extra income is not considered for reduction on consent.
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On consent (in an agreement) SS can be adjusted annually the same as CS. It is need based so if the recipient starts to make more earlier than expected then it is reasonable (IMHO) to reflect this.
SS entitlement and duration are normally not reviewed annually, usually every 3-5 years depending on the circumstances. There is nothing stopping parties to agree to revise annually.
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I know parties where no CS is paid on consent and other parties where CS was either increased or reduced on consent. You cannot of course consent to reducing T1 taxable income. But you can absolutely vary child support from table amounts on mutual consent.
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Caveat. When CS and SS are paid CRA will attribute the table amount to CS and then the balance to SS to disallow parties from making CS deductible to the higher income earner. They removed income splitting a long time ago by making CS non-deductible. If only CS they do not care.
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Originally posted by Brampton33 View PostSo if I make an extra $10,000 by moonlighting in 2021 and quit in December 2021....when I do my taxes in 2022, my earnings will show as higher and that will be reflected in my support payments for 2022, despite me quitting that "extra" job in December 2021? Did I get that right?
On average, this system probably very slightly benefits support payers because income usually increases over time.
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