T1157 Tax Form: Child Support Payments
Who uses the T1157 Tax Form?
This form can be used by divorced parents to make changes to the way child support payments are being taxed in Canada.
Did tax rules change regarding child support payments in Canada?
If your court judgment about child support payments is dated before May 1st, 1997, the old rules apply and child support is being treated the same way as spousal support. According to the old rules, the parent who pays child support can deduct them from his or her income tax and the parent who receives child support payments has to pay tax on those payments.
What do we have to do when filing a T1157 form?
If you both agree that the parent who pays child support will no longer deduct it and that the parent who receives the child support payments will no longer declare them as income, you can both sign this form and send it to the CRA.
Can we change our minds?
No, once you submit the T1157 form, you cannot return to the way things were in the past.
What is considered child support?
The payments have to be made under an agreement or court order, the parents must live apart because of a breakdown in their relationship, and the payments have to be made for the maintenance of the child. In most cases, child support payments have to be periodic and be made directly to the other parent.
For more information, consult the form and its accompanying guide on the CRA website today.