Q - Can parents claim or deduct child support payments for income tax purposes?
A – This depends when the child support order was made.
The Income Tax Act was amended in 1997. Before the amendments the rules were that the paying parent could claim child support payments as a tax deduction, and the receiving parent had to claim the support as income. If your child support order or agreement was made before May 1, 1997, the old tax rules continue to apply, unless you obtain a new order or agreement or vary the order after May 1,1997.
Child support orders made or varied since May 1, 1997, cannot be claimed as a deduction by the paying parent and the receiving parent does not have to claim the support as income.
A – This depends when the child support order was made.
The Income Tax Act was amended in 1997. Before the amendments the rules were that the paying parent could claim child support payments as a tax deduction, and the receiving parent had to claim the support as income. If your child support order or agreement was made before May 1, 1997, the old tax rules continue to apply, unless you obtain a new order or agreement or vary the order after May 1,1997.
Child support orders made or varied since May 1, 1997, cannot be claimed as a deduction by the paying parent and the receiving parent does not have to claim the support as income.