What are Schedule III adjustments and when do they apply to child support income?

Schedule III of the Child Support Guidelines lists specific adjustments that are made to a parent's income before applying the support tables. These adjustments allow certain deductions that a tax return does not capture or disallows certain deductions that a tax return does permit, so the income figure used for support reflects what is truly available to the parent for support purposes.

Examples of Schedule III adjustments include: union or professional dues, child care expenses paid by the payor for children from the relationship, certain employment expenses that are genuinely required as a condition of employment, and non-capital losses available from prior years. On the addition side, certain amounts that are deducted on the tax return — such as RRSP contributions and some tax-shelter deductions — are added back because they represent available income that the parent chose to defer or shelter rather than spend.

The adjustments work in both directions: some items reduce the income used for support, and others increase it. Schedule III is not commonly invoked in straightforward employment-income cases, but it becomes important for self-employed individuals, investors, and those with complex financial arrangements. If you believe Schedule III adjustments significantly affect your income calculation — either up or down — discuss this specifically with your lawyer or a financial professional who works in family law.