How is child support calculated in Alberta when income is self-employed or irregular?
This answer covers the law of Alberta.
In Alberta, child support for a self-employed or irregular earner starts from the paying parent's annual income. Income is generally taken from the "Total income" line of the T1 General tax form, adjusted under Schedule III.
Because this kind of income can swing, a court may look at your income over the last three years if the current year would not fairly reflect it. If you are a shareholder, director or officer of a corporation, the court may attribute all or part of its pre-tax income to you where your salary does not fairly reflect money available for support. The court may also impute income, for example for unreasonable deductions of expenses. Parents may agree in writing on income, and the court may accept the figure if reasonable.
Expect to produce documents. An applicant must include the other parent's personal income tax returns for the three most recent taxation years, plus notices of assessment and reassessment. A respondent served with an application must provide the same documents within 30 days if in Canada or the United States, or 60 days elsewhere, unless the court sets another deadline. A lawyer can help confirm your situation.
Key takeaways
- Income is generally taken from the "Total income" line of the T1 General tax form, adjusted under Schedule III.
- A court may look at your income over the last three years if the current year would not fairly reflect it.
- A court may attribute corporate pre-tax income to you, or impute income for things like unreasonable expense deductions.
- Tax returns and notices of assessment for the three most recent years are required, with 30 days to respond in Canada or the United States and 60 days elsewhere.