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  • nontaxable income, self employed and expenses

    I hope someone knows about this.

    My ex is on WSIB. He wentfor retraining and graduated and then looked for work.
    His WSIB has been reduced. This is non taxable income. He has found a job that is 100% commission.

    He is telling me that he will be taking all his business expenses from his self employment commision job and using them to reduce his WSIB income so that he doesn't have to pay me child support and that I will have to pay him.

    Can he do that? Can he take expense deduction from a taxable job to reduce the income from a nontaxable income?
    I know he can't for Income tax purposes but I also know that sometimes Child Support looks at things differently.

    Thanks for any help.

  • #2
    If has a loss from his business it will operate to reduce the WSIB and lower his line 150 amount on his tax return.

    Business losses (or profits as the case may be) are reported at line 135 of the tax return. WSIB income is reported at line 147, so if line 135 is negative (i.e. a loss) then line 150 will be lower than line 147.

    Two things:

    1)Is the loss a real loss or just opportunistically created to reduce his CS?

    2)No ones gets rich on WSIB. The CS that flows from WSIB income won't be huge. You're can't be talking about a lot of money.

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    • #3
      I'm not worried about what he would pay.
      He has been paying reduced support because he had them factor in my share of the mortgage of the matrimonial home that he was living in. So instead of getting $278 a month (based on his grossed up full WSIB at the time) I was only getting $137.
      The house sold in August of 2009. WE have not been able to get a signed agreement since then so I'm still just getting the $137 and he contributes nothing toward the health benefits that cover the dhildren and cost me $200.
      Now that he's graduated, they've reduced his WSIB benefits and he got this commission job.
      And he plans to come after me for child support because his income is reduced (straight commission at the new job so he's counting on his $411 a week WSIB as being the most he will make.

      I only make 33 000 a year and he will make 26000 minus whatever expenses he can deduct from his commission business.

      I've offered to have him pay me the arrears that he owes and then we'll just call it even with me keeping the health benefits for the kids but he maintains I will pay him $121 a month in child support.

      Comment

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