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Is Child Tax Benefit included in Support as a wage?

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  • Is Child Tax Benefit included in Support as a wage?

    Quick question,

    I am just wondering if CCTB/Trillium Benefit in Ontario is considered part of my income when determining spousal and child support. I was told differing opinions on this matter so I just wanted to confirm. I get a large amount from the government for Child Tax Benefit per month, since my income is considerably lower than my ex's. My income is roughly 1/3 of his.

    Thanks,
    T.

  • #2
    I don't believe that it is.

    But what I DO know is that spousal support is taxable income for YOU, and a deductible expense for HIM.

    Which means that if you get a nice, big, fat monthly spousal payment, you will see your tax benefits lopped down to a degree.

    The same does not apply to child support.

    I make 80,000, and my ex makes 25,000. I don't pay spousal because we weren't married too long, and I gave her some lump some payments. I DO pay almost $10,000 a year in child support though. Because of my high income, I didn't even bother with trying to get the Canada Child Tax Benefit and let her have all of it. By the time that her CCTB comes in in, and she adds her income that is very minimally taxed, and adds the child support that I pay, and you factor in how much money I pay in taxes, we are not that far apart in net disposable monthly income. It is crazy.

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    • #3
      In my experience the Child tax credit has never been considered income. I get a very large amount with my current wife because we have 5 children at home but they have never considered it part of my income.

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      • #4
        Cctb is not income for anyone.

        SS is taxable income. But most single mom's that aren't working won't pay tax on it if they have a child to claim (the first $25K of income (or so) for a single - not married or living common law - mother with a child to claim is not taxable).

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        • #5
          It was included in our calculations for SS but not CS: In the with child support formula, the Child Tax Benefit, the Universal Child Care Benefit, the child portion of the GST credit and any other child benefits for the children of the marriage are treated as income for spousal support purposes, unlike for child support. The software automatically computes these benefits and thus these benefits should NOT be calculated manually and included as income, as that will lead to double-counting.

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