A client is receiving support payments (incl. spousal support) from a non-resident husband without SIN.
If there is an written agreement, does she have to register it with CRA?
If there is no written agreement, does she need to report the amounts received on T1 even though it is non-taxable?
Spousal support is taxable to the recipient and deductible by the payor.
Spousal support payments are taxable, and she is required to pay tax on her world income.
A five-second query on the search engine of your choice as below….
taxability of support payment canada from “non-resident”
…reveals this, which is a complete answer:
Opinion: Doing this should be well-within the ability of anyone holding themselves out as a tax pro.
I try to refer to the difference between TAXABLE and REPORTABLE when I talk about Support Payments.
Support Payments are ALWAYS reportable.
Support Payments may not necessarily be taxable.
It is the taxpayer’s obligation to ensure that they can support whatever claim that they raise.
Exactly what I was looking for. Thank you!