Obtaining Reliable and Repeatable SSAG Calculations

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Appendix B: Sources of Income

The Child Support Guidelines uses the sources of income reported in the T1 General Income Tax and Benefit Return as the foundation of income assessment for child support purposes. The Spousal Support Advisory Guidelines largely use the Child Support Guidelines methodology to determine gross income. While the T1 personal income tax return is a convenient initial measure of income, two points must be kept firmly in mind:

1. the deductions permitted by the Canada Revenue Agency for tax purposes are not necessarily permitted for the determination of income for the purposes of child support and spousal support; and,
2. the income generally used for the calculation of support is the individual’s actual income not his or her taxable income for tax purposes.

The following is a summary of the sources of taxable income identified in the T1 personal income tax return.^[42]

LINE 101: Employment Income

• The tax payor’s income from all third party employers, usually as reported on T4 slips.
• Subject to the deduction of CPP/QPP contributions and EI premiums at source.
• Subject to the deduction of provincial and federal taxes at source.

LINE 104: Other Employment Income

• Income earned as a consequence of the tax payor’s employment, not reported on T4 slips.
• Includes:
  • tip income;
  • occasional earnings from short-term, impermanent employment;
  • clergy housing allowance;
  • foreign employment income;
  • income-maintenance insurance plan income;
  • veteran’s benefits;
  • royalties; and,
  • employee profit-sharing income.

LINE 113: Old Age Security Benefits

• Income received as regular OAS pension benefits only.
• NOTE: Do not includeOAS spouse’s allowance payments or Guaranteed Income Supplement payments in this sum; these amounts are reported elsewhere and have a different tax status.

LINE 114: CPP/QPP Benefits

Income received as regular CPP/QPP benefits or CPP/QPP disability benefits, including any lump-sum benefit payments received in the tax year.

LINE 115: Other Pension Income

• Includes:
  • private pension and superannuation income;
  • LIF and RRIF income; and,
  • income from foreign pensions.

LINES 117: Universal Child Care Benefits

• Federal benefit payable in respect of all children under the age of six.
• NOTE: For Advisory Guidelines purposes, include only UCCB received for children of the marriage.
• NOTE: Do not adjust for any UCCB repayment, this amount is reported elsewhere.

LINE 120: Dividend Income

• The tax payor’s dividend income from Canadian and foreign companies.
• NOTE: The amount of dividends reported at this line is the grossed up amount of the dividendnot the actual amount of the dividend received by the tax payor. Count the actual amount of dividends received for the purpose of the Advisory Guidelines, not the grossed up amount.

LINE 126: Rental Income

• Rental income net of expenses.
• NOTE: The deducted expenses are subject to adjustment for reasonableness under the Advisory Guidelines pursuant to CSG s. 19(1)(g).

LINE 128: Support Payments

• Periodic spousal support payments are taxable income in the hands of the recipient.
• Does not include lump-sum payments.
• NOTE: For the purposes of the Advisory Guidelines, count only support payments to non-parties.

LINE 130: Other Income

• All of the tax payor’s income not reportable elsewhere in the personal income tax return.
• Includes:
  • scholarships, bursaries and fellowships received in connection with the tax payor’s post-secondary education;
  • artist’s project grants;
  • apprenticeship incentive grants;
  • lump-sum payments from pension plans and deferred profit-sharing plans;
  • severance payments;
  • death benefits received from sources other than CPP/QPP;
  • training allowances;
  • trust payments, including annuity payments not reported elsewhere; and,
  • distributions from a RESP or RDSP account.

LINES 135 to 143: Self-Employment Income

• Includes income earned in specific self-employment activities (fishing, farming, and commission sales) and catch-all activities (business income and professional income), net of expenses.
• NOTE: The deducted expenses are subject to adjustment for reasonableness under the Advisory Guidelines pursuant to CSG s. 19(1)(g).

LINES 144 to 146: Social benefits

• Includes:
  • workers’ compensation program benefits;
  • social assistance benefits; and,
  • Old Age Security spouse’s allowance and guaranteed income supplement benefits.
• NOTE: Although this income is included in a party’s total income reported at Line 150, all or some of the income is deducted in the calculation of taxable income at Line 250.
• NOTE: Only social assistance benefits relating to the party are included as income for the purposes of the Advisory Guidelines.

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