Difference between revisions of "Child Support"

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Child Support (view source)

Revision as of 01:05, 5 August 2016

338 bytes removed ,  01:05, 5 August 2016
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Shortening old news pre-1967
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==Income tax considerations==
==Income tax considerations==


It used to be the case that the person paying child support could claim an income tax deduction for his or her support payments, while the recipient had to claim it as taxable income. On 25 April 1997, the federal ''[http://canlii.ca/t/7vb7 Income Tax Act]'' was amended to do away with this rule, and now child support payments are neither deductible for the payor nor taxable for the recipient.
It used to be the case that the person paying child support could claim an income tax deduction for his or her support payments, while the recipient had to claim it as taxable income. Not so anymore. Any child support payments made pursuant to a written agreement or court order made after April 30, 1997 are neither deductible for the payor nor taxable for the recipient


These changes do not apply to court orders or family agreements that were made before 1 May 1997, when the [[Child Support Guidelines]] came into effect. If those orders or agreements are varied at any point after 30 April 1997, however, the new rules will apply and the provisions for child support will become tax neutral.
The portion of a lawyer's bill attributable to obtaining, increasing, or enforcing a child support order is tax-deductible. The cost of defending a claim for child support is not deductible. Read the Canada Revenue Agency's [http://www.cra-arc.gc.ca/E/pub/tp/it99r5-consolid/ Interpretation Bulletin IT-99R5] for the fine print.


The portion of a lawyer's bill attributable to obtaining, increasing, or enforcing a child support order is tax deductible. The cost of defending a claim for child support is not deductible. Read the Canada Revenue Agency's [http://www.cra-arc.gc.ca/E/pub/tp/it99r5-consolid/ Interpretation Bulletin IT-99R5] for the fine print.
To claim this deduction, the lawyer must write a letter to the CRA setting out what portion of his or her 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 he or she 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 his or her fees were attributable to advancing 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 he or she can keep a log of time spent on the child support claim.


==Child support and social assistance==
==Child support and social assistance==
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