Support Arrears Paid in full..Tax question

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geena

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I currently receive spousal support and child support. The final court order laid out a payment order. This was January 2011. As of Jan 2012, he was still over 15 thousand dollars in arrears. I had minimal income. Had to beg and borrow to make ends meet. As of last year, he got a job and has paid it all off, and is now caught up and paying as ordered.
My question is: Am I going to get nailed for income tax now? It is going to show I had a pile of money, all in one year. I am still behind with loans personal and other after having to borrow for the year he didn't pay anything.
He is now trying to reduce my support after only being caught up for a year. The year before, when he was ordered to pay, he didn't. I need to know how to be able to prepare my financial documents as I am now being asked to have my support assessed as to my income etc. I don't make much currently with my job, but I have made a little more due to having training and upgrading so I may support myself. I just feel that considering I have only had a short period of time where I can rely on payment, I am going to get slammed…all at my expense. I don't have money for a lawyer, and he has retained a large, expensive firm to represent him for this assessment. Im a bit overwhelmed. can anyone advise me here? thanks
 
You will have to pay taxes on SS only, for the year you received it. STBX gets a tax credit for SS but doesn't on CS. You pay taxes on SS but not CS.

A little of advice: I receive SS and I pay CRA 10% of it voluntarily a month so I don't get hit with paying taxes at the end of the year, which could amount to alot. You can create an account with CRA to make installments.

good luck
 
3/4 of support is spousal. Had it been paid annually I would not have to pay tax. Because it all came in one year I'm goi h to get nailed. Will the court look at this as "you got a pile of money, yo don't need anymore support?" Or do the look at the fact I had no support for a year after it was ordered? My ex has never been happy a out paying me and he is doing everything in his power to see that I get penalised. He wants me to have to pay. He'd rather that than me get anything. I'm goi g up against him in court with no attorney and he's going in with a high end lawyer. He is going to win and I will be stuck. Yet again paying more court costs and I still owe 20 grand to my divorce lawyer. This is so frustrating. Is it even worth it?
 
3/4 SS sounds like alot compared to the CS. Usually it is the other way around. In the court order, does it clearly state what the SS amount and CS amounts are? if they are combined there is no way to "prove" to CRA how much SS is, and it can be viewed as 100% CS.

Retroactive lump sum payments

If your support payments fell into arrears, and you made one lump-sum payment (of at least $3,000 that you can deduct and the recipient has to report as income) to bring your requirements for previous years up to date, give the recipient of the support payments a completed Form T1198, Statement of Qualifying Retroactive Lump-Sum Payment.

To the recipient:
We will not reassess your returns for prior years to include this income. However, you can ask us to tax the parts for the
prior years as if you received them in those years. You have to include the whole payment on the appropriate line of your return
for the year. See the back of this form for details.

This part would be your saving grace. In regards to taxing prior years.​
Hope this helps a little, but go to the CRA web site and search spousal support. Lots of information to read.
 
Thank you so very much. I will look into that. To answer a prior question. Yes. My court order specifies how much is spousal and how much is child support.
 
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