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  • Child support and tax

    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?

  • #2
    Originally posted by undersc0re View Post
    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?

    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.

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    • #3
      Originally posted by rockscan View Post
      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.
      form 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

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      • #4
        Originally posted by respondent View Post
        form 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 dont 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 doesnt 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 wouldnt have the trouble we do with recovering funds.

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        • #5
          Originally posted by rockscan View Post
          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.
          I 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.

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          • #6
            Originally posted by respondent View Post
            I 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.

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            • #7
              FRO is probably the way to go in order to have proof on either side that payments are made I would imagine.

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              • #8
                Originally posted by undersc0re View Post
                FRO is probably the way to go in order to have proof on either side that payments are made I would imagine.

                Cash is the only thing you cant track

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                • #9
                  Originally posted by undersc0re View Post
                  FRO is probably the way to go in order to have proof on either side that payments are made I would imagine.
                  probably, 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.

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                  • #10
                    Originally posted by respondent View Post
                    probably, 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 Im saying they arent duplicating FRO. They just havent updated from when cs was taxed.

                    This is an organization that cant even figure out an order splitting the ccb. They arent going to deal with non payment of support!

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                    • #11
                      Originally posted by rockscan View Post
                      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!
                      Both 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.

                      Comment


                      • #12
                        Originally posted by respondent View Post
                        Both 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 cant happen.

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                        • #13
                          It seems like a big mess with provincial and federal courts and programs and taxes and payments etc etc…..just put them all federal lol.

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                          • #14
                            Originally posted by rockscan View Post
                            One is federal and the other provincial. It can�t happen.
                            Can easily happen. We've got 13 different programs in each and every province performing the very same function, having the same overhead and wasting dozens or even hundreds of millions taxpayers money yearly - see the list below.

                            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

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