Child Support Payments – Are they tax deductible?

I remember when mothers everywhere were outraged about this tax. I didn’t have children at the time so it didn’t affect me but now a similar outrageous policy is affecting our children/youth and the U-turn Generation where their earnings are considered family income and clawed back by the government for individuals receiving Social Assistance or a Person With a Disability (PWD). I can understand having some of their earnings clawed back when they reach above a certain amount and they have their own bedroom but this is ridiculous! Click here to learn more or read an excerpt below.


The government changed the tax treatment on Child Support payments on May 1, 1997. Whitney Smith Chadder is a lawyer specializing in family law issues, here is her explanation:

Subject to a few exceptions, the amount of child support paid is determined by the government Child Support Guidelines.  These are based on the payor’s income (line 150) and the number of children to be supported.

In addition to the base amount of support, parents are typically required to share the cost of section 7 expenses on a pro rata basis based on their respective incomes.  Section 7 expenses refer to expenses that are in excess of what the base amount of support could reasonably cover; they include day care costs and significant extra-curricular activity costs.

The general rule with respect to child support is that it is not tax deductible to the payor, or taxable as income to the recipient.  However, this has not always been the case.  Prior to May 1, 1997, when the new law came into effect, child support was tax deductible to the payor and taxable as income to the recipient.


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