Canada allows people receiving taxable support payments (under the terms of an agreement or court order) to claim legal fees related to enforcing the order as a tax deduction.
“Legal and accounting fees As the recipient, you can deduct, on line 22100 of your tax return, legal and accounting fees incurred:
■ to collect overdue support payments owing
■ to establish the amount of support payments from your current or former spouse or common-law partner
■ to establish the amount of support payments from the legal parent of your child (who is not your current or former spouse or common-law partner) where the support is payable under the terms of a court order
■ to try to get an increase in support payments.
You can also deduct, on line 23200 of your tax return, legal and accounting fees incurred to try to make child support payments non-taxable. As the recipient, you cannot claim legal and accounting fees incurred:
■ to get a separation or divorce
■ to establish child custody or visitation rights Legal and accounting fees paid to collect a lump-sum payment that does not qualify as a support payment are not deductible (see “Lump-sum payments” on page 5).”
The CRA Tax Guide is found at p102-23e.pdf. See page 12 of the guide.
If you are looking for help enforcing your existing order or agreement, we would be happy to help. Give us at call at 902-429-7272.
Whitehead & Associates.