Is child support taxable income in British Columbia?
This answer covers the law of British Columbia.
Generally, no. Child support paid under an order or agreement made after April 1997 is not deductible by the person paying it, and the person receiving it does not have to include it in income. For most separated parents today, that means support is simply left off both tax returns.
Older arrangements are different. Orders or agreements made before May 1997 are taxable to the recipient and deductible by the payer, unless the amount was changed after April 1997, a new order changes the total, the order says payments after a certain date (not before May 1, 1997) are non-taxable, or both parties elect the post-April 1997 treatment using Form T1157, which is irreversible. If your arrangement is that old, it is worth checking which category it falls in.
Tax treatment is separate from how the amount is set. In British Columbia the table amount depends on the payor's income, taken from the Total income line of the T1 General with Schedule III adjustments, not on the recipient's income. The recipient's income still matters for sharing section 7 expenses and for shared-parenting and hardship claims. An accountant can confirm how your own return should look.
Key takeaways
- Child support under an order or agreement made after April 1997 is not deductible by the payer and need not be included in the recipient's income.
- Orders or agreements made before May 1997 are generally taxable to the recipient and deductible by the payer, with listed exceptions.
- Both parents can elect post-April 1997 treatment for an older arrangement using Form T1157, but the election is irreversible.
- The BC table amount depends on the payor's income only, though the recipient's income matters for section 7 expense sharing.