Difference between revisions of "Tax Implications of Support Payments"

Tax Implications of Support Payments (view source)

811 bytes removed , 03:47, 28 September 2020

2,553

edits

@@ Line 68: / Line 68: @@
 Keep a record of every spousal support payment. Keep copies of cancelled cheques or receipts of electronic money transfers. Make a note on each cheque or receipt what time period the payment covered.
 |}
-====The spousal support must be paid by a spouse to their spouse====
-Generally speaking, spousal support payments are only taxable and deductible if they’re made by a spouse to a spouse or former spouse.
-The payor shouldn’t have someone else make the support payments on their behalf, or pay them out of a joint account.
-Support payments aren’t usually deductible if they’re paid to someone else. A spouse might, for example, pay a smaller amount of spousal support. But, they may make up the difference by covering the mortgage on the family home. Before agreeing to this kind of payment arrangement, it’s important to get the advice of a lawyer or accountant. You want to be sure that Canada Revenue Agency will treat the support payments in the way that works best for your financial situation.
 ====Proving that the spousal support payments were actually paid====