It’s kind of appalling to me that support payors being forced to go through the courts in the separation process CAN’T claim their legal fees, but recipients can. This is something I just found out, as it’s buried in the pages of tax deductions that I linked to the other day. Support recipients can claim “Carrying charges and interest expenses” on line 221 of their income tax return, which cites the following as an eligible deduction:
- legal fees you paid relating to support payments that your current or former spouse or common-law partner, or the natural parent of your child, will have to pay to you. You can also deduct your expenses in the following situations:
- You collected late support payments.
- You established the amount of support payments from your current or former spouse or common-law partner.
- You established the amount of support payments from the natural 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 an order.
- You sought to obtain an increase in support payments.
So any person who takes the issue back to court wanting more money, who might not even win, can claim those legal fees as a deduction, but a payor who wins his/her case can’t. That is fucking stupid. Does this apply if the recipient is receiving Legal Aid, or does Legal Aid get the deduction?
This letter I’m drafting up to Parliament is going to be good.