News

If you’d like to talk to us about a project, or anything else, we’d love to hear from you.

  • You are here:
  • Home
  • Uncategorized
  • Legal Fees incurred for Child/Spousal Support Payments May be Tax Deductible

Legal Fees incurred for Child/Spousal Support Payments May be Tax Deductible

There are 2 types of support payments, spousal support and child support.

Spousal support is to support a spouse or common-law partner as stated in a court order or written agreement. The support payments are made only to support the recipient.

Child support is to support a child, or a child and a spouse or common-law partner, as stated in a court order or written agreement. The support payments are not only made to support the recipient.

The tax rules are different depending on the type.

Generally, child support payments made under a court order or written agreement made after April 1997 are not deductible by the payer and do not have to be included in

the recipient’s income. Spousal support payments continue to be deductible to the payer and must be included in the recipient’s income.

However, as the recipient, you can deduct, on line 22100 of your tax return, legal and accounting fees incurred:

■ to collect overdue support payments owing

■ to establish the amount of support payments from your current or former spouse or common-law partner

■ to establish the amount of support payments from the legal parent of your child (who is not your current or former

spouse or common-law partner) where the support is payable under the terms of a court order

■ to try to get an increase in support payments

You can also deduct, on line 23200 of your tax return, legal and accounting fees incurred to try to make child support

payments non-taxable.

As the recipient, you cannot claim legal and accounting fees incurred:

■ to get a separation or divorce

■ to establish child custody or visitation rights

Legal and accounting fees paid to collect a lump-sum payment are not deductible. The lump-sum also does not qualify as a support payment.

For further information and details speak to a family lawyer today.

Book an Appointment

x