The lump sum payment made at the end of the divorce or separation is not taxable to the beneficiary. But it will not be deductible for the person who pays it. However, maintenance paid to spouses is taxable in the following four circumstances and deductible for the payer: 3.48 According to the definition of the amount of maintenance in subsection 56.1(4), sums to be paid to a beneficiary for which the beneficiary has no discretion as regards the use of the amounts are not eligible for support and therefore cannot be used to determine the amount, which a payer may deduct pursuant to Article 60(b). However, if a court order or written agreement provides for the payment of an amount that otherwise requests an amount of assistance from another party in favour of the beneficiary, the beneficiary`s children or both, there may be discretion if: John cannot deduct the $500 monthly amount paid directly to the lessor, because Karen has no discretion as to the use of the amount. and the amount is in addition to the amount of aid indicated in the agreement. The written agreement expressly provided that all amounts paid before March 8, 2011 were considered paid and received under the agreement. Nathalie and Sylvain separated in January 2009. Starting in February 2009, on the first day of each month, Nathalie Sylvain contributed US$500 to spouse assistance. 8 A written agreement was reached on March 3, 2011, confirming that Nathalie Sylvain would continue to provide $500 per month in assistance to spouses.
Child support cannot be deducted in the tax return of the person paying it. This applies to all agreements or court decisions that were negotiated after May 1997. However, the good news for the beneficiary is that family allowances are not taxable (in other words, the parent receiving family allowances does not have to tax this money). In addition, all maintenance payments provided for in a court agreement or order are considered family allowances when they are not expressly labelled as alimony. Child care expenses should normally be claimed by the low-income spouse. These fees may be claimed by the higher-income spouse if there is a separation due to a breakdown of relationship for a period of at least 90 days and are cross-checked within the first sixty days following the fiscal year. . . .