It’s tax season, also known as the most stressful time of the year. If you are new to paying or receiving spouse support, you might be confused if you should or not pay taxes over this amount. We can help clarify, let’s get to it.
A support payment is an amount payable or receivable as an allowance on a periodic basis to support the recipient with a court order.
In the case of spouse support, the spouse who receives them (the recipient) must report the support payments as taxable income to the Canada Revenue Agency. And they must pay income tax on the payments.
The spouse who pays the support (the payor) can claim it as a deduction.
For spouse support inquiries or consultations, please contact Clark Woods LLP at 604-330-1777 or through the website at clarkwoods.ca.