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how to determine child support whith mixed incomes?

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  • how to determine child support whith mixed incomes?

    I have a full time job and a small business that is a sole proprietorship. my line 150 on my tax return shows a lower amount than my t4 from my full time job. I had a very bad year with my small business and it lost some substantial money. What is the correct figure to use?

  • #2
    You would use the gross income from all sources (line 150) which presumably includes the salary of your full time job plus the salary you paid yourself from your other business.

    It's very likely the fact that your company did poorly has no bearing on your CS obligations. If you drew the salary, you pay CS based on it, even if the value of the company went down. Lots of people work for struggling companies; they still have to pay CS.

    Every year you are required to show proof of income (or notice of assessment from CRA) and adjust your CS accordingly. So it may move up or down a bit depending on the situation.

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    • #3
      ok I am still a bit confused. with it being a sole proprietorship and just a 1 man operation. I don't draw a salary. My profits or losses just become part of line 150

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      • #4
        Originally posted by TrevorS View Post
        ok I am still a bit confused. with it being a sole proprietorship and just a 1 man operation. I don't draw a salary. My profits or losses just become part of line 150


        If it's less than what you paid last year you pay the same amount. If it's higher you pay more.

        If it continues to be substantially lower and no hopes of your company improving then you can apply to reduce CS.


        Sent from my iPhone using Tapatalk

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