Any opinion...

[Janus]

It's non-taxable, so nothing shows up on tax returns.

It depends, if the income is coming from an employer-provided benefit, then it is indeed taxable income.

If the income is coming from an insurance policy that you bought yourself, then it is tax free.

The idea is that you pay tax eventually. Employees do not pay tax for the premiums paid by their employer, which is why employer-funded plans are taxable when/if they pay out. If you purchase a plan yourself though, you are paying in after tax dollars, so they do not tax you again if you are unfortunate enough to need to claim the benefits.

However for support purposes only, the non-taxable amounts received will be grossed up to a taxable amount.

Yuppers, that is true for any non-taxable income.

 

[StillPaying]

The idea is that you pay tax eventually.

Sounds good but no. I paid double my income in support for years which always gave CRA a double look.

I'm in receipt of many different incomes (disability, income replacement, pension, annuities, etc). They are all tax free and undeclared. The only tax I pay, and therefore file a tax return for, is CPPD.

Although you and Rockscan say otherwise, the OP is correct in that the "tax free" disability income will be undeclared and therefore they will not benefit from any spousal support tax deductions- which only reduces your taxed income.

 

[StillPaying]

Understood but as I learned, getting too deep will impact your mental health.

Although you and the OP came to ODF for the same reasons, which makes your response interesting, just because you continue to suffer mentally does not mean it'll affect others the same.

 

[rockscan]

Although you and the OP came to ODF for the same reasons, which makes your response interesting, just because you continue to suffer mentally does not mean it'll affect others the same.

I don’t continue to suffer. I found myself getting in deep during the situation but realized I needed to step back. From OP posts it seems like she lets a lot of what his ex says/does bother her and that he depends on OP a lot more than my husband did me. Sometimes a little reminder goes a long way.


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[Janus]

Although you and Rockscan say otherwise, the OP is correct in that the "tax free" disability income will be undeclared and therefore they will not benefit from any spousal support tax deductions- which only reduces your taxed income.

Nothing I said contradicts this statement.

Some disability income is tax free. Some disability income is not tax free. If you have disability income that is of the "tax free" variety, then spousal support will not reduce your taxes, since they are already zero.

Your claim was that disability was non-taxable no matter what. I was just pointing out that the taxation status of disability income depends on the source of the income.

Your disability income may be of the "tax free" variety, but that does not mean that all disability income is like that.

 

[StillPaying]

It depends, if the income is coming from an employer-provided benefit, then it is indeed taxable income.

False. I receive long term disability from my employer, tax free.

If the income is coming from an insurance policy that you bought yourself, then it is tax free.

Agree, it's tax free.

The idea is that you pay tax eventually. Employees do not pay tax for the premiums paid by their employer, which is why employer-funded plans are taxable when/if they pay out.

False. My LTD is tax free.

If you purchase a plan yourself though, you are paying in after tax dollars, so they do not tax you again if you are unfortunate enough to need to claim the benefits.

I never paid into an employment plan, only CPP, and I'm taxed on that disability amount.

Yuppers, that is true for any non-taxable income.

Agreed.

My "claim" was that the OP was correct in her statement, not even question, which created all this. No tax. No tax statement. And therefore, no tax benefits.