Child Support FAQs Tax Implications

How are child support payments taxed?

Parents who receive child support payments are not required to include those payments in their taxable income. Payor parents are not permitted to deduct these child support payments from their taxable income.

The result of this rule is that parents who receive child support payments are able to spend more of their support payments on their children.

There is an exception to this rule if your child support arrangements were made prior to April 30, 1997. If you have an old agreement that was made before 1997, you can elect to have the current rules apply. However, both you and your spouse must agree to the new rule, and complete a form T1157. If you would like this rule to apply but your spouse does not, you will have to go to court to request a new child support order.

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About the author

Russell Alexander

Russell Alexander is the founder of Russell Alexander Collaborative Family Lawyers and is the firm’s senior partner. At Russell Alexander, our focus is exclusively family law, offering pre-separation legal advice and assisting clients with family related issues, including: custody and access, separation agreements, child and spousal support, division of family property, paternity disputes, and enforcement of court orders. We have locations in Toronto, Markham, Whitby (Brooklin), Lindsay, and Peterborough.

For more information, visit our website, or you can call us at: 905-655-6335.