Announcement

Collapse
No announcement yet.

income tax deduction - spousal support

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

  • income tax deduction - spousal support

    Interesting thing happened on the way to CRA -

    here are the guidelines:

    Spousal support is deductible for the payer, and is included in the income of the payee, as long as the recipient is receiving support as directed by a written separation agreement or court order, and those payments are made on a periodic basis.

    Well, the payer's claim was disallowed and the payee's claim was allowed. This is hilarious. Of course it will get rectified in the end but it makes a person wonder who is working at CRA, seems like if you owe money CRA allows a claim but if CRA owes you money, forget it, it gets disallowed.

    The crap one has to go through even when all the ducks are in a row.

  • #2
    first timer:

    When CRA disallowed the payee's deduction for spousal support payments, they should have informed him or her what documents were required to support the deduction, which would be either the Court Order or the signed Separation Agreement. Once the requested document is produced, the claim should be allowed.

    I agree that CRA only seems to challenge deductions and not income, but voluntary support payments are not tax deductible to the payee or taxable to the recipient, so they probably want confirmation that the deduction of spousal support payments is as a result of a Court Order or signed Separation Agreement.

    Linda

    Comment

    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.
    Working...
    X