Is child support taxed?
Question & AnswerIs child support taxed?
Check the date of your agreement or order
Check the date of your or to see if it was made before May 1, 1997.
Before May 1, 1997, parents could deduct from their income when they filed their income tax returns. And, parents receiving child support paid taxes on child support as income.
Child support is no longer taxable. The current tax rules say that payor parents cannot claim a deduction for making child support on their taxes. And, parents receiving child support are not taxed on the child support they receive.
This income tax change applies to separation agreements or court orders made on or after May 1, 1997.
So if your order was made before May 1, 1997, the old rules apply unless you and your partner agree to the current rules.
If you and your partner agree to keep the amount of child support the same and only want to change how it is treated for tax purposes, fill out a T1157 Election For Child Support Payments form and file it with the Canada Revenue Agency.