7,388
edits
Nate Russell (talk | contribs) |
Nate Russell (talk | contribs) |
||
Line 252: | Line 252: | ||
To claim this deduction, the lawyer must write a letter to the CRA setting out what portion of their fees were attributable to advancing or enforcing a child support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case, so that they can keep a log of time spent on the child support claim. | To claim this deduction, the lawyer must write a letter to the CRA setting out what portion of their fees were attributable to advancing or enforcing a child support claim. If you intend to ask your lawyer for a letter like this, you must tell your lawyer as soon as possible, preferably the moment the lawyer takes your case, so that they can keep a log of time spent on the child support claim. | ||
In shared parenting | In a shared parenting situation, where each parent has to pay child support to the other parent, the higher income parent often just pays the difference between the higher amount they owe and the lower amount they would receive. This difference is called a ''set-off amount''. In a court order or agreement, however, it matters how this arrangement is worded. Recently, the Canada Revenue Agency (CRA) has taken the position that: | ||
* | *If the agreement or court order says that ''only'' the higher income earning parent pays the difference, then | ||
*the CRA will treat the situation as if there is only ''one'' payor and ''one'' recipient of child support. | *the CRA will treat the situation as if there is only ''one'' payor and ''one'' recipient of child support. | ||