WHAT: Is Support Taxable Income?

Changes to your marital status can have implications on your income, taxes and financial situation. Once you have separated there are certain tax credits that you will no longer be eligible for, while others many now be available to you. Child support and spousal support are reported together on line 220 and 230 of your annual tax returns.

Is Child Support Taxable?

Child support is not taxable in Ontario. Parents receiving child support are not taxed on the child support and the parent paying child support cannot claim a tax deduction for the support. Neither the parent who receives the support, nor the parent who pays the child can claim the child support as a deduction.

Child support always gets paid before spousal support.

Some legal fees incurred for claiming child support are tax-deductible.

If you have primary care for your children, you may also be able to claim them as eligible dependents for the Eligible Dependent Tax Credit.

Do We Split Child Benefits When We Divorce?

A lower household income may mean an increase in the amount of child benefit you are entitled to. Be aware that if you share joint custody of your children, you may have to share any child benefits as CRA may split the benefit 50/50 between you and your ex. If your income is below a certain threshold, you may be eligible for an additional education grant for an RESP.

Is Spousal Support Taxable?

Spousal support is fully taxed as income. Spousal support id taxable income to the recipient but if you are paying spousal support to your ex, you can claim it as a deduction on your tax return.

Certain tax deductions you were able to make as a couple, like your pension income amount, any disability, and certain education claims like tuition and textbook can no longer be shared when you separate.