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Tax question - how to calculate?

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  • Tax question - how to calculate?

    I've called CRA and they've given me two different answers so maybe someone here can help out


    I receive CS, S7 expenses and SS. There are also arrears and interest added to my account as the payor tends to not quite pay everything owing.



    On my return CRA has asked I report all I have received as total income regardless of the added amounts (S7 and interest and arrears) as FRO does not distinguish which payments are applied to which individual expense. Only SS is taxable so I guess it wouldn't make any difference other than showing an inflated income for son/s OSAP application etc,


    What do I report as taxable? It's over $8000 in arrears as of Dec 31 - so do I calculate $SS - $arrears?


    Anyone had this come up before?

  • #2
    Did you get the money? Only report what came to you. Not arrears. If he owed you $10,000 but paid $8,000 you only report the $8,000.

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    • #3
      I called CRA again and finally seem to be getting a consistent answer as she checked with her resource supervisor while on the call with me.

      Ex owed $4000 in arrears Dec 31 2018 - then had to pay a monthly CS and SS amount - and added to that was the S7 expenses throughout the year and interest (because he's always late and always in arrears). He ended the year over $8000 in arrears.

      I was told to report the full amount I received even if that amount totals more than what the Order states is the total amount for CS and SS (no specified amount is on any Order for S7, only percentage and FRO enforces it). As there's no option to distinguish the breakdown for the T1 return and no option that FRO can divide the payments they received to different charges it all has to be lumped together on the support received line.

      I then need to report the total amount of SS for the year and deduct the amount of arrears (so a tax savings for me) as it is assumed that anything received goes toward the children first and anything over that is SS.

      If it sounds confusing...well that's because it is and CRA doesn't make it easy!

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