Offset CS

[kingstonmomof2]

Can someone tell me how child support is figured out with 50/50 access?
Example. Dad makes 40k and Mom makes 30k

[Mess]

Each pays CS to the other. It's important to have it worded that way so that CRA will allow full deductions to both/either parent. If one parent is designated the payor, they will disallow deductions for that parent. Deductions may or may not be challenged by CRA; both parents should apply for the CCTB and fill out a form designating shared parenting. CRA may ask for a copy of the custody order or separation agreement.

The $40k parent would pay $360 per month; the $30k parent would pay $245. One would be subtracted from the other in practice, meaning $40k would pay $30k $115 per month.

Each parent would cover the child's full expenses while with the child, and costs of food, clothing, entertainment, transportation, school supplies, sports, activities, etc. should hopefully work out evenly.

Section 7 Extraordinary expenses are daycare, summer camps, medical expenses over $100, and sports that are higher cost than ordinary, such as elite level leading to a scholarship. These are split proportionate to income. In other words, most expenses should be covered by each parent when the child is with them. They should cover the cost of "ordinary" expenses like swimming lessons equally. They should split higher level sports like competitive hockey proportionate to income.

[OrleansLawyer]

It's important to have it worded that way so that CRA will allow full deductions to both/either parent.

For clarity; child support is a transfer of after-tax dollars and is income tax neutral.

[Tayken]

Can someone tell me how child support is figured out with 50/50 access?
Example. Dad makes 40k and Mom makes 30k

The child support for shared 50-50 access for an income earner of 40,000 to an income earner of 30,000 would be $115 per month on the offset method. (MySupportCalculator.ca)

[kingstonmomof2]

Thanks Everyone!!! Unfortunately, might cost me quite a bit to get that into place

[Mess]

For clarity; child support is a transfer of after-tax dollars and is income tax neutral.

To clarify, if the setoff amount is simply ordered to be paid, the CRA sees the situation as one party paying support. They will recognise that both parties are technically paying support if it is stated as such. They require that both parties pay support in order to allow the Eligable Dependant deduction. This has nothing to do with claiming child support as a deduction, it has to do with claiming the child as a deduction.