- Child support under an order or written agreement made after April 1997 is not taxable income for the parent who receives it.
- The parent who pays cannot deduct it.
- Spousal support is different: it is deductible for the payer and taxable for the recipient.
- In shared custody, each parent gets half of the Canada Child Benefit they would get with full custody.
The rule for child support
The Canada Revenue Agency says child support paid under a court order or written agreement made after April 1997 is not deductible by the payer and does not have to be included in the recipient’s income. The federal tables were built on that rule, which is one reason they use gross income.
Older orders, made before May 1997 and never changed, can still follow the old rules, where child support was deductible and taxable.
Spousal support is treated differently
Support paid for a spouse or former spouse under a court order or written agreement is taxable to the person who receives it and deductible for the person who pays it.
When an order covers both, the CRA treats child support as coming first. Any amount not clearly identified as spousal support is treated as child support. A payer who falls behind has to be fully caught up on child support before a payment can count as deductible spousal support.
The Canada Child Benefit
Child support does not count as income for the Canada Child Benefit, because it is not taxable.
When a child lives with each parent at least 40% of the time, the CRA treats it as shared custody. Each parent then gets 50% of the benefit they would get if the child lived with them full time, calculated on their own family income.
Who claims the child at tax time
The amount for an eligible dependant (line 30400) is a credit a single parent can claim for one child. A parent who is required to pay child support for a child generally cannot claim this credit for that child.
There are two exceptions on the CRA’s page. One is the year of separation, when the parents were separated for only part of the year. The other is when both parents are required to pay support for the child. Then they can agree who claims, and if they cannot agree, neither can. The CRA looks at what the order or agreement actually requires, so the wording of a shared custody order matters. Speak to a tax professional before you sign.
Does child support affect social assistance?
That depends on the province. In Ontario, child support has been fully exempt as income for Ontario Works and the Ontario Disability Support Program since 2017. British Columbia has exempted child support for income and disability assistance since 2015. Check the rules where you live.
Common questions
Do I pay tax on child support I receive in Canada?
No. Child support under a court order or written agreement made after April 1997 does not have to be included in your income.
Can I deduct child support payments on my taxes?
No. Child support under an order or agreement made after April 1997 is not deductible. Spousal support can be deductible when it is paid under a court order or written agreement.
Is spousal support taxable in Canada?
Yes. Support paid for a spouse or former spouse under a court order or written agreement is taxable to the recipient and deductible for the payer.
Who claims the child on taxes after separation?
A parent who must pay child support for a child generally cannot claim the amount for an eligible dependant for that child. When both parents are required to pay support for the child, they can agree who claims. If they cannot agree, neither can.
Who gets the Canada Child Benefit in shared custody?
Each parent gets 50% of what they would receive if the child lived with them full time, based on their own adjusted family net income.
Need a family lawyer?
Every province has a service or directory that helps parents find a family lawyer. Find yours.
Sources
- Support payments: what to claim and report (Canada Revenue Agency)
- Income Tax Folio S1-F3-C3, Support Payments (Canada Revenue Agency)
- Line 30400, amount for an eligible dependant (Canada Revenue Agency)
- Canada Child Benefit: how much you can get, shared custody (Canada Revenue Agency)
- Ontario Works policy directive 5.5: family support (Government of Ontario)
General information only, not legal advice. For your situation, speak with a family lawyer or your province's family justice services.
