Hello,
I have a lot of questions but I need some basic understanding before I ask them. Ontario tables are simple to use and line 15000 on Income Tax is clear. What is not clear to me is how updates to child support are effected, given that income fluctuates somewhat each year.
Item 15000 is really only known when Notice of Assessment arrives. So we're already in late May. Given that FRO will not effect any changes without a Court order, we need to add some time for Court processing, so I think we arrive in late June. So what happens now?
I assume we change child support payments as of July using 15000 of the previous year. Between January and July, a lot can change. Salary can decrease or increase but the Total Income is not going to be known until the next year. So if we're using line 15000 it must be previous tax year.
If above is correct (child support payments are updated July 1st), then what happens to period January through June? Is there a lump sum catch-up amount paid in case Total Income is higher from previous update?
I understand that a lot depends on what Parties agree to but in order for me to understand the process, let's assume that Parties are not in agreement and decision is made for them.
I have a lot of questions but I need some basic understanding before I ask them. Ontario tables are simple to use and line 15000 on Income Tax is clear. What is not clear to me is how updates to child support are effected, given that income fluctuates somewhat each year.
Item 15000 is really only known when Notice of Assessment arrives. So we're already in late May. Given that FRO will not effect any changes without a Court order, we need to add some time for Court processing, so I think we arrive in late June. So what happens now?
I assume we change child support payments as of July using 15000 of the previous year. Between January and July, a lot can change. Salary can decrease or increase but the Total Income is not going to be known until the next year. So if we're using line 15000 it must be previous tax year.
If above is correct (child support payments are updated July 1st), then what happens to period January through June? Is there a lump sum catch-up amount paid in case Total Income is higher from previous update?
I understand that a lot depends on what Parties agree to but in order for me to understand the process, let's assume that Parties are not in agreement and decision is made for them.
Comment