Spousal support tax treatment guide.

The rules in short

The CRA says the support payment tax rules apply only when there is a court order or written agreement. Spousal support is generally deductible to the payer and taxable to the recipient. The conditions the CRA asks about: payments are an allowance on a periodic basis, the payer and recipient live apart because of a relationship breakdown, the recipient is the payer's current or former spouse or common-law partner, and the recipient can use the money as they see fit (or the order or agreement says the recipient includes it in income and the payer deducts it). Child support payable must be paid in full before spousal support can be deducted, and overdue child support is carried forward.

Child support. Under an order or agreement made after April 1997, child support is not deductible by the payer and does not have to be included in the recipient's income. For earlier orders it is generally deductible and taxable unless the amount changed, a new order was made with the same person, a specified non-taxable date applies, or both parents jointly file Form T1157.

On the return. Support received goes on lines 12799 and 12800; support paid is totalled on line 21999 and the deductible part claimed on line 22000. Payments made before the order or agreement are reported by the recipient and deductible by the payer only if the order or agreement says they were treated as received under it.