What are the tax implications for support payments received from a former spouse?
Allan Madan, CA
Child support payments made under a court order or written agreement after April 1997 are generally not taxable and hence do not have to be included in income by the recipient. It is also not deductible by the payer.In contrast, spousal support payments made under a court order or written agreement are usually taxable to the recipient and are required to be reported.
The payer of the spousal payment can claim the amount as a deduction on his/her tax return if the amount is stated in the court order or agreement and if all child support payments for current and prior years have been paid completely.
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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