The way you calculate income for child support purposes may be different from the way you would calculate income for tax purposes.
“impute” the income-in other words, the judge may add an amount to set an income that is more appropriate in your circumstances. impose a penalty-for example, the judge may order you to pay the legal costs of the other parent, which can be very expensive. If you don’t provide complete and up-to-date income information and your case goes to court, a judge can: If you live outside of Canada or the United States, you must provide the documents within 60 days of the application being served. If you live in Canada or the United States, you must provide the documents within 30 days of the application being served. In all cases, you must give the other parent copies of any documents you give to the court. information about your corporation’s pre-tax income if you are a shareholder, officer or controller of a corporation. copies of any applicable trust settlement agreements, along with the trust’s three most recent financial statements. information on income you received from social or public assistance. information on income you received from disability payments. information on income you received from workers’ compensation. information on income you received from employment insurance. your corporation’s financial statements if you are self-employed or if you control a corporation. your most recent statement of earnings or pay slip, or a letter from your employer stating your salary or wages. the notices of assessment and reassessment from the Canada Revenue Agency for each of the three most recent tax yearsĭepending on your situation, you may also need to share other income information such as:. your income tax returns for each of the three most recent tax years. If your income is needed to calculate a child support amount, it is important to provide complete and up-to-date income information, including: You may need to calculate the income of every member of both households to compare the standards of living if either of you is claiming undue hardship. You may need to calculate your child’s income-for example, if the child is over the age of majority and you are taking his or her financial means into consideration to determine a child support amount. If you choose this option, you would need to calculate both incomes. You can then determine an amount for the portion of income over $150,000 by looking at the condition, means, needs and other circumstances of the child and the financial ability of each of you to contribute. You can use the tables to determine the child support amount for the first $150,000. If you choose this option, you would only need to calculate the paying parent’s income. Then add the percentage listed in the tables for the portion of income over $150,000. The Federal Guidelines provide two options: If the paying parent earns more than $150,000 per year, you may need to calculate both incomes. your child is at or over the age of majority and the way you decided to calculate child support is different from the way you would calculate it if the child were under the age of majority. either of you has claimed undue hardship. 
there are special or extraordinary expenses.one of you is the parent and the other acted in the place of a parent to the child.
You will need to calculate both of your incomes if: When information about your income is required, you have a legal obligation to provide it. In other cases, both parents’ incomes will be needed. In some situations, only the income of the paying parent will be required. It may be a good idea to get help from a third party such as an accountant or a legal adviser. The receiving parent is also expected to help support the children financially based on their capacity to pay.Ĭalculating the income on which to base child support can be complicated, especially if you are self-employed or your income fluctuates a lot. Even if you only need to calculate the paying parent’s income in your situation, you both have an obligation to support your children.
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