Ontario child support tables. Which tax year's income?

L

Leszek

New member
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.
 
Blink is right but to expand on that advice...you can do this easily because we are going to tell you how!

Because you are with FRO you will need an updated order. You can get that quickly via a motion to change on consent. It's a 15C. So you tell your ex how much your line 150 is for 2021 and that you will draw up the paperwork to get it changed for her signature. You would then give her all the paperwork to sign, go to the courthouse and get a rubber stamp. As part of that filing you will say the amount will change as of July 1. You can start paying FRO on July 1 the updated amount and then they will calculate what you owe when they do the paperwork. They will take that money from the account you pay into.

If your ex doesn't agree with that, you will still need to file a motion to change, it will just take longer to get through the courts. If she's smart, she will simply agree and move on.

As for the other stuff, it doesn't really matter what your changes are unless it's a major change that needs to be done immediately. For instance, you were earning 100 grand a year and lost your job and went to 25 grand a year. Then you would want an immediate change but if your ex doesn't agree, it will take court. Or if you go from 50 grand to 100 grand, you could agree and do a motion immediately. For people who make more money in January versus July, it all evens out in the end so it's the whole year of income they consider.

Because you are with FRO, it's difficult to change on a dime so you should go with the average which is your NOA line 150 each year.
 
Hm...

Let's consider this example with made up figures for easy consideration. The assumption is that child support is to be updated on July 1st. Please focus on numbers to explain the proper calculation. This is a totally made up example to understand how item 15000 should be used.

Year Income
2019 50K
2020 100K
2021 75K

What child support should I have paid in 2020?
a) 6 months of 50K base + 6 months of 100K base?
b) 12 months of 100K base?
c) Otherwise?
 
Ontario child support tables. Which tax year's income?

No it catches up each year. It works out in the end. You are overthinking it. The amount that should have been paid in 2020 would have been the 2019 income.
 
I am not overthinking. I need to know the answer to this, regardless of the fact that it catches up eventually. I was rushing to meet an FA and I realize I made a mistake in my post @4:25PM. I can't edit it, so I'll repost my question here.

Year Income
2019 50K
2020 100K
2021 75K

What child support should I have paid in 2021?
a) 6 months of 50K base + 6 months of 100K base?
b) 12 months of 100K base?
c) Otherwise?
 
Why is that the case?

For January to June of 2021, I would have still been paying child support set for July of 2020 which would have been based on 2019 NoA and 15000 equal to 50K. Then from July to December of 2021, I would have been paying child support set for July of 2021 which would have been based on 2020 NoA and 15000 equal to 100K.

Are you saying that FRO would have called me in July of 2020 to tell me I need to make aa equalization payment for the period of January though June?
 
No because you are paying based on the previous years income. It equals out by December. That’s how the tables work. Regardless of whether you earned the most money in the end of the year or not, you still earned that money the previous year so you pay based on that income.
 
Rock, how can January 2021 child support payment be based on income in 2020 when item 15000 of 2020 income is only known in May 2021 when NoA arrives..?
 
Youre already paying an amount of child support that was determined the previous year. You update at the same time each year. So you pay each year accordingly. Regardless of how much you made in January or July, it is the annual amount determined by the tables.

If it’s that big of an issue for you, use your paystubs and update whenever your income changes but you said your ex is not easy to work with so you follow the legislation that dictates it is done when your line 150 is known. Or adversely you could do your taxes when you get all your documents and update in March or April. Or you can take your final paystub for the year and use your annual income starting in January. There is no set logic for why or when. It is simply that your agreement/order says once your taxes are done or July. It reduces the amount of misinterpretation of paying child support. You know what your income was by May 1 and for some people it takes a month to get their shit together and update. If you don’t like July, ask your ex and agree on a month.

Whichever way you do it, you are still using the annual income for the year previously and paying for the year going forward.

It truly isn’t that difficult unless you lose your job and are paying an astronomical cs amount on unemployment.
 
OK. Let's leave it because you have not answered my question and you're getting stressed out. I need the answer and I'll get it somewhere else. No worries. Thanks for replies.
 
Ontario child support tables. Which tax year's income?

I did answer your question but I will say your confusion over the “science” (if you will) of the tables is not yours alone. Many people have had the same type of wondering over it and unhappiness over how things are calculated. For some the tables work, for others they do not. Case in point, my husband lost his job part way through the year and was still unemployed during the regular update. He was going to be required to pay support on an increased income he wasn’t making anymore. His lawyer told him he needed to update immediately and settle arrears. His ex wanted the increased support he was paying to continue (he had updated when he found the job over a year earlier) and then the increased amount that would be on his line 150 to be in place. Truly he would not be paying support on his actual income until the year after and paying on a higher income for two years despite his income being that amount for one.

The tables work for the majority of cases but not all. The idea is that they catch up the next year but not for many. And with FRO in place, it is even more difficult to update properly. But this isn’t something the courts can change, it’s a legislative issue.
 
Rock, I am not suggesting that tables are confusing or that they don't make sense because I over or underpay. That's completely beside the point. I'm not showing my income for anybody's consideration. I have made up some numbers only to understand how to use those tables to properly compute child support payable in a calendar year.

My question was:

Year Income
2019 50K
2020 100K
2021 75K

What child support should I have paid in 2021?
a) 6 months of 50K base + 6 months of 100K base?
b) 12 months of 100K base?
c) Otherwise?
Click to expand...

I see it this way:

2021-01 - table amount for 50K (Income for 2020 is not yet confirmed via NoA, so it's still 2019's 15000 that was used to update child support for July 1st of 2020.).
2021-02 - table amount for 50K, as above.
2021-03 - table amount for 50K, as above.
2021-04 - table amount for 50K, as above.
2021-05 - table amount for 50K, as above.
2021-06 - table amount for 50K, as above.
2021-07 - table amount for 100K (Income for 2020 confirmed via NoA, so it's 2020's 15000 that is used to update child support for July 1st of 2021.).
2021-08 - table amount for 100K.
2021-09 - table amount for 100K.
2021-10 - table amount for 100K.
2021-11 - table amount for 100K.
2021-12 - table amount for 100K.

So based on my understanding, the answer is A. Part of what you're saying does point me to same conclusion but part does not and you did answer B.
 
You are looking at it from a January to December payment plan but it is not. It is a July to June plan. And because you use line 150, it is considered income for all of 2020 paid beginning in July 2021. So because you are doing that, you pay the amount for all of 202 beginning in July until June.

If you want it to be exactly January to December like your annual income, you would need to use a pay stub or offer letter that shows that income, not income tax.

Unfortunately the law uses income tax and that is not completed until April 30 and therefore the three months after the fact are used to calculate.
 
rockscan said:
You are looking at it from a January to December payment plan but it is not. It is a July to June plan. And because you use line 150, it is considered income for all of 2020 paid beginning in July 2021. So because you are doing that, you pay the amount for all of 202 beginning in July until June.

If you want it to be exactly January to December like your annual income, you would need to use a pay stub or offer letter that shows that income, not income tax.

Unfortunately the law uses income tax and that is not completed until April 30 and therefore the three months after the fact are used to calculate.
Click to expand...

This is correct. So even though your income may be different for the months of January to June, it balances out over the following 12 months until the next adjustment. You pay based on line 150 of the previous year, starting in July.
 
I understand the OP and why the responses are confusing.

Year Income
2019 50K
2020 100K
2021 75K

What child support should I have paid in 2021?
a) 6 months of 50K base + 6 months of 100K base?
b) 12 months of 100K base?
c) Otherwise?
Click to expand...
During the year of 2021 you would pay income based on 100K of 2020 income

In 2022 when your taxes are revealed showing 50K income an adjustment would be done so you ask for the money overpaid for 2021.


The actual change or request for a change of CS can happen anytime of the year, if it didn't then there would be this year end rush and so can the adjustment. There isn't a Change CS day.



Spreading that return money out over many months is normal. It was explained to me as allowing your ex to not be worried about the amount of income they have.



There are more factors like your ex saying his income should always be 100K they are under earning or that extra 25K of your income was a one time windfall.






There are some other things that come into play like your ex bringing you into court because you have a new job and are earning a lot more and they need that extra CS now. You might say I lost my job but normally there is an expectation that you could be employed newly next week so no adjustment is prudent, maybe you lost all 4 limbs and that expectation is gone.
Court system is so slow right now those things will never make it to court on time. If it is done by Separation Agreement you can always ask but don't expect your ex to have to deal with your life's ups and downs.
 
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