Spousal Support: Difference between revisions
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*'''Separation Agreements:''' In addition to a term describing a fixed, periodic sum as spousal support, the agreement must also state that the parties have been separated since a certain date and intend to continue to live separate from each other. Payments for child support and spousal support should never be expressed as a single amount. | *'''Separation Agreements:''' In addition to a term describing a fixed, periodic sum as spousal support, the agreement must also state that the parties have been separated since a certain date and intend to continue to live separate from each other. Payments for child support and spousal support should never be expressed as a single amount. | ||
*'''Unwritten Agreements:''' In general, the tax department will not recognize anything other than a written separation agreement or a court order. There are some exceptions to this rule, but you really should arrange your support payments in a formal fashion. | *'''Unwritten Agreements:''' In general, the tax department will not recognize anything other than a written separation agreement or a court order. There are some exceptions to this rule, but you really should arrange your support payments in a formal fashion. | ||
*'''Proof of Payment:''' CRA will want proof you made the payments you are seeking to deduct. If you can’t get receipts, make sure you can document the payments you made. E-transfers or bank records in the correct amount may not be enough. It has to be recorded as spousal support somehow ( | *'''Proof of Payment:''' CRA will want proof you made the payments you are seeking to deduct. If you can’t get receipts, make sure you can document the payments you made. E-transfers or bank records in the correct amount may not be enough. It has to be recorded as spousal support somehow (e.g. cancelled cheque — with “spousal support” noted in the memo line). Cash payments are the worst. If you must pay in cash, get a receipt. | ||
===Changing source deductions=== | ===Changing source deductions=== | ||
