Is there any benefit the payor of child support can get in terms of a taxable benefit any where in Canada? I am not sure if the payor is asked to state the amount they pay, but I know I am asked how much I received for the year, just wondering why they ask is all. Is child support used in calculating other things and thats why they ask?
Announcement
Collapse
No announcement yet.
Child support and tax
Collapse
X
-
Originally posted by undersc0re View PostIs there any benefit the payor of child support can get in terms of a taxable benefit any where in Canada? I am not sure if the payor is asked to state the amount they pay, but I know I am asked how much I received for the year, just wondering why they ask is all. Is child support used in calculating other things and thats why they ask?
No it is not taxable nor is it a benefit. I believe the only reason why they ask is for things like gst or ccb. My husband has never reported paying cs and his ex has never claimed it. The reason why is because it makes no difference on certain income levels and payors.
-
Originally posted by rockscan View PostNo it is not taxable nor is it a benefit. I believe the only reason why they ask is for things like gst or ccb. My husband has never reported paying cs and his ex has never claimed it. The reason why is because it makes no difference on certain income levels and payors.
I am not aware of tax consequences for either side. To me CRA explained they want to ensure you don't have arrears for CS, before they issue you tax refund on SS. Technically if you don't pay/receive SS, reporting CS is irrelevant
Comment
-
Originally posted by respondent View Postform 1158 https://www.canada.ca/en/revenue-age...rms/t1158.html requires you to report both CS and SS.
I am not aware of tax consequences for either side. To me CRA explained they want to ensure you don't have arrears for CS, before they issue you tax refund on SS. Technically if you don't pay/receive SS, reporting CS is irrelevant
CRA has no knowledge of what is going on with support unless you are with a maintenance agency and an order has been filed for recovery. I don’t care what the CRA person said, that is the only way they recover it and I know this because I have experience with my parents spousal and also my own recovery of other arrears I had ordered. It doesn’t matter what you put in, if there is an order against you all they care about is what your refund is because they will take it.
If the system was that advanced we wouldn’t have the trouble we do with recovering funds.
Comment
-
Originally posted by rockscan View PostCRA has no knowledge of what is going on with support unless you are with a maintenance agency and an order has been filed for recovery. I don�t care what the CRA person said, that is the only way they recover it and I know this because I have experience with my parents spousal and also my own recovery of other arrears I had ordered. It doesn�t matter what you put in, if there is an order against you all they care about is what your refund is because they will take it.
If the system was that advanced we wouldn�t have the trouble we do with recovering funds.
If I was in charge of CRA, I'd probably audit first accounts where the tax return on SS is largest.
Comment
-
Originally posted by respondent View PostI don't have "maintenance agency and an order has been filed for recovery" - not even sure what is it. I pay directly to ex, without FRO involved, never delayed CS/SS even by a day. They still came to me asking for 1158 and proof of CS paid. CRA can't check everyone, so your experience could be different from my.
If I was in charge of CRA, I'd probably audit first accounts where the tax return on SS is largest.
Like I said to you before, I have no idea why CRA said what they did to you or if it is simply a translation issue. The bottom line is the only thing CRA has to do with child support is to hold back a refund if the payor has an order for seizure due to arrears. Another poster on here who went through an issue with his ex had his tax refund seized due to an arrears order.
Comment
-
Originally posted by undersc0re View PostFRO is probably the way to go in order to have proof on either side that payments are made I would imagine.
When there is a court order, I don't know why CRA needs anything more than that. Worst case have court order and form 1158 signed only by one person. If I don't pay CS/SS there is a FRO that would chase me, no need for CRA to duplicate their function.
Comment
-
Originally posted by respondent View Postprobably, but when I just started paying support I didn't use FRO (still don't) as first I didn't know form 1158 exists, and second I couldn't imagine that high conflict lawyer representing my ex would instruct her not to sign it or provide a receipt for support payments.
When there is a court order, I don't know why CRA needs anything more than that. Worst case have court order and form 1158 signed only by one person. If I don't pay CS/SS there is a FRO that would chase me, no need for CRA to duplicate their function.
And this is why I’m saying they aren’t duplicating FRO. They just haven’t updated from when cs was taxed.
This is an organization that can’t even figure out an order splitting the ccb. They aren’t going to deal with non payment of support!
Comment
-
Originally posted by rockscan View PostAnd this is why I�m saying they aren�t duplicating FRO. They just haven�t updated from when cs was taxed.
This is an organization that can�t even figure out an order splitting the ccb. They aren�t going to deal with non payment of support!
Comment
-
Originally posted by respondent View PostBoth CRA and FRO are the government organizations, and could be reorganized with a snap of fingers, and would even allow reducing staff. The only challenge that FRO is apparently specific to Ontario, which means other provinces duplicate the overhead for similar programs, but it would be a nice little reorg from government that would actually help people by simplifying the process.
One is federal and the other provincial. It can’t happen.
Comment
-
Originally posted by rockscan View PostOne is federal and the other provincial. It can�t happen.
Alberta Maintenance Enforcement Program
B.C. Family Maintenance Enforcement Program
Manitoba Maintenance Enforcement Program
New Brunswick Office of Support Enforcement
Newfoundland & Labrador Support Enforcement Division
Northwest Territories - Maintenance Enforcement Program
Nova Scotia - Maintenance Enforcement Program
Nunavut - Family Support Program
Ontario - Family Responsibility Office
Prince Edward Island - Maintenance Enforcement Program
Quebec - Support – Payment Collection Program
Saskatchewan - Maintenance Enforcement Office
Yukon - Maintenance Enforcement Program
Dear Justine Trudeau. If you are looking for a specialist with years of experience restructuring public and private sector companies to help you re-organize all these redundant services and help millions Canadians, as well as provide yearly savings to the taxpayers, please PM me.
Comment
Comment