6. Why Income for Taxes is Different from Income for Support
Why Income for Taxes is Different from Income for Support
his episode of the Ontario Family Law Podcast discusses how a self employed person’s income for support can be much different, usually higher, than what that person shows on their tax return. This is the case even when the self employed person is being entirely honest on his or her tax return. Self- employed people are taxed differently from people on salary, and so they are treated differently in relation to both spousal and child support. It is critical that when one or both separated spouse is self employed, both spouses understand the difference in how support is calculated. Support may be much too low or much too high if both sides do not understand how support calculations work.
Share your experiences with losing money – or coming out ahead, in your separation or divorce to supplement what people learn from this important page.