My wife and I separated on Jan 4th 2010. Is she entitled to any of my tax refund for last year?
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Is she entitled to my tax refund?
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A tax refund is just a repayment of money that was all along YOURS. i.e. you only got a refund becuase you overpaid your tax during 2009.
So imagine what the situation would be if you had not overpaid your tax during 2009 (and therefore had no refund).
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Originally posted by dinkyface View PostA tax refund is just a repayment of money that was all along YOURS. i.e. you only got a refund becuase you overpaid your tax during 2009.
So imagine what the situation would be if you had not overpaid your tax during 2009 (and therefore had no refund).
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It was an asset built up during your marriage, so she is in fact entitled to half of it.
A tax refund means you overpayed the government during the 2009 tax year, so if you had paid the proper amount, your assets would be higher, and she'd be entitled to half of that.
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Tax and governemnt monies
Child support or spousal support
either way the tax refund or lump sum payments are NOT income and can not be considered! PERIOD!
Also CTB and UTB as well are not income.
Here is my personal favourite.....
Ontario works (welfare)
is not income, so guys if she is on Ontario works and you have the child forget about getting support!
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Originally posted by microcrashboy View PostChild support or spousal support
either way the tax refund or lump sum payments are NOT income and can not be considered! PERIOD!
Also CTB and UTB as well are not income.
Imagine if he had short payed Revenue Canada, he would not have had a refund. And, instead, he would have deposited 10$ per week for the full 2009 year a Royal Bank investment account. At the end of the year, it would have been an asset and should have been divided equally between the two of them. It doesn't matter when it matures, the value at the time of the separation is divided equally between the two.
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No its not
Ok income is not an asset it is income.
besides the federal child support guidelines prohibit the use for CTB or UTB to be used to calculate child support. Think about it you are being double taxed.
About Child Support in Canada
You can even lookup what you should be paying
About Child Support in Canada
Here is a better description
Federal Child Support Guidelines: A List of Selected Case Law and Summaries
Also a tax refund is not income, and it is a personal tax return even if you filed jointly.
There is caselaw in appeals court that clearly states income tax refunds are not income.
Child Tax and UCB is under federal law and they have made it very clear no judge is allowed to order payment. They decides who gets what and how much.
Don't take my word for this do some reading as I did.
Remeber you are now dealing with two laws child support guidleines and tax law. Also refer to canlawii and search child tax you will see lots of caselaw stating it is not income.
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A tax return is not an income. The tax refund is an amount of money that is owed to the OP from CRA. He overpayed them during the year, which was while he was married. As of December 31, 2009, Revenue Canada owed him money.
Any other year, the tax return should not be taken into consideration, for revenue or assets. However, in this situation, as of December 31st, 2009, they were still married, therefore the money owed to one of the spouse is the same as money owed to both of them.
In this case, where they divorced after the year end, but before they received their tax refund, how is that different then paying the proper amount of taxes during the year, but investing the money in a private bank instead?
The UCB and any EI or social assistance provided is not included in line 150. However, the CCTB is a taxable benefit, and it's usually not removed from the CS calculations. Unless I'm mistaken, you remove SS and CS from your line 150 to calculate the CS, but you don't remove the 100$ per month provided by the CCTB.
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Logic is good!
You use logic to determine if something is income, which is a very good argument, however for example, I got a $35,000 lump sum payment from my employer for a previous year, is this income? (I got a T4 slip, declared it on my T1, notice of assement, etc.)
You would think it is, logic would say it is, but whoever said the law was logical or even made sense. The answer is: It is not! I ahve several caselaw cases to show it and a judge would backdown once you state that.
My point here is never asume income is income even if you think it is. You have to yourself reasearch and find the law (spousal or child support) and also caselaw on the subject, as well as other laws like Rev Can. They are very clear on CTB and UTB a court can not touch that for any reason period they even provide caselaw.
A good lawyer would know all this, but a better client would also know it too.
See as a client you are dealing with two profesionals an accountant and a lawyer. A lawyer is not a good accountant and an accountant is not a good lawyer. You have to look at both equally - you are the one who will pay as well as your kid(s)!
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Originally posted by microcrashboy View PostYou use logic to determine if something is income, which is a very good argument, however for example, I got a $35,000 lump sum payment from my employer for a previous year, is this income? (I got a T4 slip, declared it on my T1, notice of assement, etc.)
If I get a lump sum payment for tax purposes, it's not income. I never said it was. In this specific case, it's an asset, because the amount was owed while they were still married, but it was paid after they separated. The date of payment is of no importance, it's the value of the asset at the date of separation.
And, EI, UCB and any other non taxable benefit can not be used for CS calculation. I agree with that. However, it's very clear that for SS, you take all incoming cash flow, taxable or not.
And, CTB is taxable, and it is not removed from your line 150 for calculation of CS.
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