support payments Flashcards
1
Q
2 types of support payments
A
Spousal support child support
2
Q
Is SPOUSAL SUPPORT taxable?
A
- spousal support is TAXABLE to person receiving
- tax DEDUCTION for person paying
3
Q
is CHILD SUPPORT taxable?
A
- child support payments are NOT TAXABLE AND NOT TAX DEDUCTION (after april 1997)
- when reporting support payments on return- DO NOT include amount paid that are more than required in the specified order (i.e pocket money, gifts, etc..)
4
Q
id martial status chan ged mid year, what happens to support payments?
A
- if made support paym ents for a child and you were seperated from spouse for PART of the eyar, can claims whichever if more beneficial
- any deductible support amounts paid for the eyar
- any applicable non refundable tax credit you qualify for
5
Q
Suopport payment 5 conditions (for spouse ?)
A
- based opn court order/wri tten agreement
- ex spouse must be living at a different home when breakdown occurs
- payment is made to help with cost of living
- payment must be made regularly
- payments have to be made from individual to former spouse
