1 / 6

Income Tax Implications of Child and Spousal Support

When it comes to filing your Income Tax Return, there is a big difference between Child Support and Spousal Support.

richmondhillfamilylawyers
Download Presentation

Income Tax Implications of Child and Spousal Support

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 INCOME TAX IMPLICATIONS OF CHILD AND SPOUSAL SUPPORT https://www.richmondhillfamilylawyers.com/

  2. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 When it comes to filing your Income Tax Return, there is a big difference between Child Support and Spousal Support. https://www.richmondhillfamilylawyers.com/

  3. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 Child Support is tax neutral, which means that if you are paying Child Support, you cannot deduct these payments from your income and if you are receiving Child Support, you need not include these payments as income on your return. Spousal Support is just the opposite: if you are paying Spousal Support, you can deduct the periodic Spousal Support that you pay on your Income Tax Return and if you are receiving Spousal Support, you must report these payments as income on your Income Tax Return.  This only applies to Spousal Support paid pursuant to a Separation Agreement or Court Order, which is one of the many reasons why it is important to ensure that any agreement that you reach is properly drafted. https://www.richmondhillfamilylawyers.com/

  4. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 Periodic Spousal Support Can Impact Your Income Tax Return The difference between Child Support and Spousal Support is not the only important difference when it comes to filing your Income Tax Return. Another important distinction is the difference between periodic, or monthly, Spousal Support payments and a lump sum, or one-time, payment of Spousal Support.  Periodic Spousal Support payments affect your income when you file your Income Tax Return. If you are making, or receiving, a lump sum payment, then this may not apply to you.   https://www.richmondhillfamilylawyers.com/

  5. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 Legal Fees Can Also Impact Your Income Tax And Support Another key issue when it comes to Income Tax and Support are your legal fees. You can deduct legal fees that you spend on obtaining periodic Child Support or periodic Spousal Support.  The important distinctions to note here are that you can only deduct legal fees spent to obtain periodic Child Support or Spousal Support payments.  This means that you cannot deduct legal fees spent to obtain lump sum payments. Also, you can only deduct legal fees spent to obtain Child Support or Spousal Support payments.  This means that you can only deduct these legal fees if you are the recipient of Child Support or Spousal Support; this does not apply to support payors. https://www.richmondhillfamilylawyers.com/

  6. Richmond Hill Family Lawyers Book A Free Consultation. Call:(905) 237-5548 Thank You https://www.richmondhillfamilylawyers.com/

More Related