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groobi
Level 2

Spousal support

My client paid to his former spouse (support payments) in 2020 but doesn't want to record the amount as a deduction on his return since the former spouse would have to record it as income. Would it be ok if he records the payments under "Amount paid" but zero under "Allowable deduction" on Support payments page? Or does he have to deduct it?

Solved
Best answer March 18, 2021

Best Answers
janisbossenberry
Level 4

Spousal support

If the support payments are being made under a court order or a written separation agreement, then I would think the amount he is paying would have been set based upon the allowed tax treatment (deduction to him, income to her).  If there is no written agreement or court order, the payments do not have to be treated under the proper tax rules and you would record nothing.  If there is a written agreement (but no court order), I suppose that both parties could agree to basically scrap the agreement.  If it is under a court order, I don't think you would have any option.  If you do end up not taking the allowed deduction, do not record anything on the tax return - if you do, you will have to send in a copy of the written agreement and the CRA will treat it according to the proper rules.

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1 Comment 1
janisbossenberry
Level 4

Spousal support

If the support payments are being made under a court order or a written separation agreement, then I would think the amount he is paying would have been set based upon the allowed tax treatment (deduction to him, income to her).  If there is no written agreement or court order, the payments do not have to be treated under the proper tax rules and you would record nothing.  If there is a written agreement (but no court order), I suppose that both parties could agree to basically scrap the agreement.  If it is under a court order, I don't think you would have any option.  If you do end up not taking the allowed deduction, do not record anything on the tax return - if you do, you will have to send in a copy of the written agreement and the CRA will treat it according to the proper rules.

View solution in original post