No announcement yet.

CRA question

This topic is closed.
  • Filter
  • Time
  • Show
Clear All
new posts

  • CRA question

    Background: CRA disallows the deduction for spousal support payments instead the amount is put under child support. Spoke with CRA and have filed the appropriate Amendment to declare SS payments as deductible. Waiting on the Re-Assessment. In the meantime, SSAG report calculation is being done.

    My question is: Since CRA disallowed the tax deductible to me, can I safely assume that CRA did not tax the spousal support amount to the recipient (did not add the spousal support amount to income). Which would mean that this amount does not get deducted when doing the SSAG calculations.

    I have received copies of my ex-spouse's Notice of Assessment but it does not state if the spousal support was allowed or disallowed.

    Any one out there with a similar situation that could provide feedback. Thanks.

  • #2
    As far as I know, the CRA denied my SS write off claim because I did not have a separation agreement (I did have signed receipts), yet they accepted my ex's SS as income and gladly tax her.

    I don't think the CRA ever denies that you made money, they only deny adjustments.

    I now have a signed separation agreement which is dated from when I started SS, so I have resubmitted for previous years to get my SS deduction from the CRA.


    • #3
      Before I was able to have my taxes adjusted I needed a signed agreement. In my case it was a 1 sentence paper stating it was an interim agreement for spousal support for X amount and that the agreement could be registered with CRA. My ex and I both signed it. I had no problems getting my taxes reduced.

      My only complaint is that my lawyer didn't include an end date on the "interim" agreement and thus my ex seems to be stalling for as long as humanly possible to continue collecting money from me.

      You'll need some form of agreement to register with CRA. Then you need to send copies of the agreement to 1-2 tax centres with the appropriate forms to register it as a tax deduction if you want to have taxes reduced at-source.


      • #4
        first timer:

        Spousal Support is only tax deductible to the payer and taxable to the recipient if a court order or signed Separation Agreement is in place. Otherwise, it is considered voluntary support and your spouse does not have to claim it as income and you cannot claim it as a deduction. The same holds true if the support is paid in one lump sum.



        • #5
          Thanks Bill M, after doing some research and calling CRA for their policy regarding SS being disallowed by the payor and still being taxable in the hands of the recipient; I found out that indeed in most cases that is what occurs; according to CRA they do not cross check SS payments when it comes to taxing the money even if the deductible was disallowed by the payor which means the money will be taxed twice. Apparently its up to the individual who received SS to verify whether it was taxed or not. And up to the payor to prove that it was indeed SS payments and allowed the deductible.

          Since I can prove that the SS was disallowed as a deductible, the onus is on the recipient to prove that it was taxed. This helps with my inquiry when it comes to doing up a SSAG report for the annual review of support payments. The recipient will have to prove the SS was included in total income and indeed taxed before it can be deducted from the SSAG calculations.

          In the meantime, I have filed Form T1158, Registration of Family Support Payments. I had an agreement registered already, but it changed and instead of sending an updated form along with the updated agreement, we both included our updated agreement with our tax returns. Big no-no. You live and learn.

          Once this is cleared up I will simply do an updated SSAG report to reflect the Re-Assessments.


          Our Divorce Forums
          Forums dedicated to helping people all across Canada get through the separation and divorce process, with discussions about legal issues, parenting issues, financial issues and more.