Does Child Support Count as Income for Taxes in Ontario?

Whether child support is taxable or deductible is a tax question, so confirm how it applies to your return with an accountant or the Canada Revenue Agency. What the family law rules do cover is how the amount is set. A court making a child support order must follow the child support guidelines, and the paying parent's income starts from "Total income" on their tax return.

Because tax returns drive the numbers, disclosure matters. A parent whose income is in issue must provide every personal income tax return and notice of assessment and reassessment for the three most recent taxation years. After an order is made, each person whose income was used must give the other party their latest return and notice no later than 30 days after each anniversary of the order, unless the parties agree otherwise. Dividends and taxable capital gains are counted at the actual amounts received or realized.

How child support affects benefits such as the Canada Child Benefit depends on your circumstances and is also worth confirming with the CRA or an accountant before you file.