Are child support payments taxable income in Canada?

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Generally, child support becomes a significant issue after the divorce. Usually, child support includes child custody, living, caretaking of the child, and so on. The child should get all the help from their parents, like when they were together before divorce.

But the question arises that are child support payments taxable in Canada? Also, what happens if you don’t pay child support in Canada?

This article answers all these questions with more details. Let’s know.

How is child support determined?

Usually, child support is determined based on the government’s Child Support Guidelines. Then again, many factors play a very important role in determining child support. The child support guideline is made in favor of the parents and also for the children.

Some of the factors that determine child support are given in the following:

  • Parents monthly income
  • The lifestyle of each parent
  • Number of the children and dependent children
  • Child caring cost
  • Child’s education costs
  • Health care costs
  • Costs for any disabilities or medical conditions.

Other than these factors mentioned above, various factors can determine child support. Each case is unique from than other. So the court usually takes some fundamental factors to determine the support amount. After the court decision, you will know how much you would have to pay or receive.

What child support usually covers?

Each and every case are different. So the needs of children are also can be different than others. But usually, there are some common things that the child support covers. And those are considered as the fundamental needs of children. Such as:

  • Food
  • Shelter
  • Proper clothing
  • Health care
  • Ensuring the child care
  • Education or proper schooling
  • Mental and physical health

How long would you have to pay or receive child support?

In general, child support is only applicable to children. That means, when an individual is no longer a child, it will not apply to them when a child grows up into an adult person. You do not have to pay child support anymore. On the other hand, if you are the recipient of child support, you’ll no longer receive child support.

Now, what is the age that considers as an adult? In Canada, as long as a child is 18 years old. That child will be considered an adult. And the child support will not be applicable for that person.

But there are also some exceptional cases where the child is unable to live alone for physical disabilities. In those certain circumstances, the child supports will be continued. 

Can you suddenly stop providing child support?

Sometimes, the other party may violate your visitation rights to your children. In such cases, you may think that you can stop providing child support. But no, visitation right has nothing to do with the child support. If the court determines a certain amount as child support, you have to pay it in time.

Even if you suddenly stop paying the child support. You may have to deal with some penalties from the court. The penalties for not providing child support also can be several.

Some of the penalties are given in the following:

  • Court charges for not paying in time
  • Wage garnishment
  • Legal action from the law of courts
  • Financial charges and so on.

What happens if you don’t pay child support in Canada?

If the court determines a certain amount as child support and if you are the payer. Then you have to pay the child support amount in time. If you refuse to do that, you will be charged for that by the court. There are several penalties that you may need to deal with.

Some of the penalties are in the following:

  • Wage garnishment
  • Federal payment garnishment (i.e., income tax refund)
  • Seizure of passport or bank account
  • Driving license suspension and many more

Are child support payments taxable income in Canada?

If you are the child support payer, you do not have to deduct the child payment. On the other hand, if you are the recipient of child support, there are no taxes for the money you get.

Note that the child support amount is not a taxable income in Canada and the nearby territories.

There are also some rules and regulations regarding income tax in Canada. If you want to know more about it, you can explore the online resources by the Canadian bar association. You will find the child support laws and rules there.

Does the child support include any additional expenses?

Child support usually covers all the basic needs of a child. But in some cases, there are some additional expenses that a child needs to deal with—for example, private schooling, private tutor, expenses for extracurricular activities, and many more.

Generally, those special and extra expenses will not come under child support. If there are any special costs, both parent needs to share that expenses. So, no matter which party pays child support, the parents will share the expenses.

Conclusion:

After the divorce, child support becomes a critical issue. Sometimes, it is normal to get confused about the rules and regulations of child support. Especially when you are the payer of child support, various questions may arise in your head. In such cases, you can seek professional help to guide you throughout the process.

A child support lawyer can help you protect your rights, deal with your best interest, and so on. Sometimes, you will have no chance to negotiate with the court. But a lawyer can negotiate on your behalf. Hopefully, this writing helped you to find the answer to your question.



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