What counts as income when calculating child support in Ontario?

Under the Child Support Guidelines, "income" means your total annual income as set out in your federal income tax return, with adjustments. This generally includes employment income, self-employment income, rental income, investment income, pension income, and EI or social assistance benefits. The starting point is Line 15000 of your Notice of Assessment.

For employees, this is usually straightforward. For self-employed individuals, business owners, or those who earn dividends through a corporation, the calculation is more complex. The Guidelines allow the court to "add back" certain deductions — such as depreciation claimed on a business — that reduce taxable income but do not reflect actual spending power. The court can also consider pre-tax corporate income retained in a company if a payor controls the corporation and is not paying themselves a market salary.

If a payor is intentionally unemployed or underemployed to reduce support, the court may impute income — attribute earnings the payor is capable of making based on their skills and work history. Gathering proper financial disclosure is essential. A lawyer can help you analyze a payor's income documents and determine the correct figure to use.