- Child support under a court order or written agreement made after April 1997 is not deductible by the payer and is not income for the recipient.
- Older arrangements made before May 1997 follow different rules until certain events move them to the non-taxable treatment.
- Payments made without a court order or written agreement are not treated as support payments for tax.
If you pay or receive child support in Ontario, you probably wonder how it shows up on your tax return. The answer depends mainly on when your order or agreement was made, and whether it exists in writing at all.
This article explains the general rule, the exception for older arrangements, how spousal support differs, and why informal payments are treated differently. It is general information, so an accountant or lawyer can confirm how it applies to you.
The general rule for child support
Child support paid under a court order or written agreement made after April 1997 is not deductible by the person paying it, and it is not included in the income of the person receiving it.
In plain terms, the payor cannot reduce their tax by paying it, and the recipient does not add it to their income.
How spousal support is different
Spousal support is treated differently. It remains deductible to the payer and taxable to the recipient.
This matters if one order or agreement covers both kinds of support. It is worth making sure the document clearly separates the child support amount from any spousal support amount, and an accountant can confirm how each is reported.
Older orders and agreements made before May 1997
There is an exception for orders or agreements made before May 1997. Child support under these is taxable to the recipient and deductible by the payer.
An older arrangement can move to the non-taxable rules. The new treatment applies instead if any of these happens:
- The child support amount is later changed.
- A new order is made with the same person.
- A non-taxable date is specified.
- The parties file a joint Form T1157 election.
Payments without an order or written agreement
Payments made without a court order or written agreement are not treated as support payments for tax. The payer cannot deduct them, and the recipient does not report them.
Informal arrangements also leave you with less protection if payments stop, which is one more reason to put the arrangement on paper.
What to do next
If your support is informal, consider putting it into a formal arrangement. There are several routes, and each connects to enforcement through the Family Responsibility Office (FRO):
- A court order. Court-ordered support is automatically filed with FRO.
- Ontario's online Child Support Service, which issues a Notice of Calculation or Recalculation that is sent to FRO for enforcement. It is not available in every situation.
- A written agreement, which can be filed with the court with a Form 26B affidavit, with a copy sent to FRO, so FRO can enforce it.
- Find the date of your order or agreement.
- Check whether it separates child support from spousal support.
- If it was made before May 1997, find out whether any of the four events has happened.
- Speak with an accountant or lawyer before filing a return or making a change.
Frequently asked questions
Can I deduct child support I pay in Ontario?
Generally not, if it is paid under a court order or written agreement made after April 1997. Older arrangements made before May 1997 may be deductible by the payer until they move to the non-taxable rules.
Do I report child support I receive as income?
Under a court order or written agreement made after April 1997, child support is not included in the recipient's income. Under a pre-May 1997 arrangement it is taxable to the recipient.
What if we only have a verbal arrangement?
Payments made without a court order or written agreement are not treated as support payments for tax, so the payer cannot deduct them and the recipient does not report them.
Does changing an old child support amount affect the tax treatment?
Yes. If a pre-May 1997 child support amount is later changed, the non-taxable treatment applies instead. A new order with the same person, a specified non-taxable date or a joint Form T1157 election has the same effect.
Sources
- Ontario.ca – Set up or update child support online — ontario.ca
- Ontario.ca – Arranging child support — ontario.ca
- CRA – Amount you can claim or report — canada.ca
- CRA – Support payments — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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