Taxes

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sufferer

sufferer

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My ex paid me support through out the year although the amount was of his choice.Then finally the court ordered him support in August 20O7. The court specified the SS and CS amount.Then in January 2008 We had the settlement conferance and although the amount remained same but SS increased and CS decreased.So How should I file my 2007 taxes ?As per the August order or the January order?
Also till August he paid me almost half of what he was suppose to pay.So again how should I consider the CS and SS.?
LV you are aware of the whole story in detail so I am really looig forward for your response.
 
CS is no longer taxable in the hands of recipient so you don't need to worry about that.

I believe for SS to be taxable, you either have to have a separation agreement or a court order. Also the support payments must be predetermined and periodical. For 2007, you should report the actual payments received throughout the year because I am sure your ex is going to claim them as his deductions. More details on http://www.cra-arc.gc.ca/E/pub/tp/it530r/it530r-e.html#P57_4350.
 
Hey Suff,

I concur with what singledad99 has posted. Claim only the amounts of spousal support that you received in year 2007. I would even go as far as to attach a letter and explain the discrepancies between the court ordered amount of support and actual amounts of spousal support received. Attach a copy of the court orders as well.

Don't forget to claim one of the children as an equivalent to spouse amount on your income tax return as an extra deduction to offset the payable tax that may be owing on the received spousal support.

lv
 
sufferer said:
Then finally the court ordered him support in August 20O7. The court specified the SS and CS amount.Then in January 2008 We had the settlement conferance and although the amount remained same but SS increased and CS decreased.So How should I file my 2007 taxes ?As per the August order or the January order?
Also till August he paid me almost half of what he was suppose to pay.So again how should I consider the CS and SS.?
For tax purposes, agreements can make retroactive reference to payments made in the year or the year before.

As said above, child support is non-taxable but spousal support is taxable. Part of your question centres around the ordering of application of payments, including what appear to be arrears payments. Arrears are first presumed to apply to (non taxable) child support.

I advise you to get the advice of a tax accountant. Put together a summary of payments received in 2007 and show him/her the two orders. While not overly complicated, your question does have some wrinkles.
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