Here is what the Spousal Support Calculator says...
Input the taxable amount of dividends (both eligible and other than (ie. non) eligible) that the party received from taxable Canadian corporations (T1, Line 120).
IMPORTANT: You must also input any non eligible dividends under:
"Taxable CDN dividends (non eligible)".
NOTE: To input the actual (rather than taxable) amount of dividends, go to "Actual CDN dividends (eligible)" and/or "Actual CDN dividends (non eligible)", as applicable.
There are two types of dividends that a party may have received from taxable Canadian corporations:
eligible (T5 slip, Box 25; T4PS slip, Box 31; T3 slip, Box 50; T5013 or T5013A slip, Box 52-1); and/or
other than (ie. non) eligible (T5 slip, Box 11; T4PS slip, Box 25; T3 slip, Box 32; T5013 or T5013A slip, Box 51-1).
To determine the type of dividend received, the party should contact the payor of the dividends.
If no information slip is received, to calculate the taxable amount of these dividends:
multiply the actual amount of eligible dividends by 144%;
multiply the actual amount of other than (ie. non) eligible dividends by 125%.
Note that the software will automatically calculate the dividend tax credit. As well, the software will automatically back out the grossed-up amount of the taxable dividends from the party's annual income in the determination of the party's Guidelines Income and child and/or spousal support.
According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".
Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.
See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.
My Rebuttal:
Ok now we are getting into some juicy stuff.
What I can tell you is that if you are a corporate owner, you are basically screwed if you expect any lawyer or judge to calculate this correctly.
First of all, you need some definitions:
Eligible Dividends - This means dividends that are eligible for the small business deduction of 400,000 of income. These dividends are grossed up by 25%. The reason there is a grossup and a dividend tax credit is to account for the progressive nature of our tax code. (ie the higher your income, the higher rate of tax you pay on that extra income)
To be continued...
Sunday, July 18, 2010
Income Section - Employment Insurance Benefits (EI)
Here is what the Spousal Support Calculator says...
Input the annual amount of any employment insurance and other benefits received by a party (T1, Line 119; T4E slip, Box 14 minus Box 18).
According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".
Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.
See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.
TIP: There is a built-in conversion feature. See the help under "Employment Income".
My Rebuttal:
Since tax returns are historical data, one must assess the current situation. Perhaps the unemployed person has returned to work. In that case, his current salary should be imputed and any amounts on this line and line 101 would be ignored. The same situation could happen if there was a parental leave.
Bottom line is the current situation must be assessed and proper income needs to be imputed and this line ignored. That is my view.
Input the annual amount of any employment insurance and other benefits received by a party (T1, Line 119; T4E slip, Box 14 minus Box 18).
According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".
Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.
See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.
TIP: There is a built-in conversion feature. See the help under "Employment Income".
My Rebuttal:
Since tax returns are historical data, one must assess the current situation. Perhaps the unemployed person has returned to work. In that case, his current salary should be imputed and any amounts on this line and line 101 would be ignored. The same situation could happen if there was a parental leave.
Bottom line is the current situation must be assessed and proper income needs to be imputed and this line ignored. That is my view.
Income Section - Elected Split-pension amount
I must apologize for the delay (almost two months) since my last post. So many people need help (mostly men) who are being bankrupted by this corrupt system. I do my best to answer every email I can to help them right this injustice. In addition, I have had to spend time on my own case (the Trial Management Conference is this coming week) I am hoping the judge can finally see reality. I have calculated he has given her between 70-75% of the income. And somehow I am expected to survive? I have no reason to believe any other men are getting any more justice than I am therefore I believe I have a responsibility to share my knowledge to help others.
This is what the Spousal Support Calculator says...
Input the jointly elected split-pension annual amount that a party is receiving from his/her spouse or common law partner's pension income (T1, Line 116; Form T1032, Line E).
Note that the party and his/her spouse or common law partner must have jointly elected to split the pension income and have filed a Form T1032. Further, only one joint election can be made for a tax year, so if both spouses/common law partners have pension income, only one person's pension income (up to 50%) can be split.
Note that the software will automatically deduct this split-pension amount from the party's annual income in the determination of the party's Guidelines Income and child and/or spousal support (CSG, Sch. III, s.14).
According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".
Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.
See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.
TIP: There is a built-in conversion feature. See the help under "Employment Income".
My Rebuttal:
The whole basis for the split pension amount is for the couple to pay less tax. For example a 50,000 income on one tax return pays more tax than a 25,000 income each on two returns. You really can't arbitrarily add this for the calculation of child support and spousal support. What the couple is trying to do is ensure taxable income is equally split so they pay less tax. You would have to assess what happened during the relationship with regards to pension and a variety of other factors to determine the correct split. I'm not going to spend too much time on this because it will affect relatively few people and the issues would be extremely complex.
This is what the Spousal Support Calculator says...
Input the jointly elected split-pension annual amount that a party is receiving from his/her spouse or common law partner's pension income (T1, Line 116; Form T1032, Line E).
Note that the party and his/her spouse or common law partner must have jointly elected to split the pension income and have filed a Form T1032. Further, only one joint election can be made for a tax year, so if both spouses/common law partners have pension income, only one person's pension income (up to 50%) can be split.
Note that the software will automatically deduct this split-pension amount from the party's annual income in the determination of the party's Guidelines Income and child and/or spousal support (CSG, Sch. III, s.14).
According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".
Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.
See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.
TIP: There is a built-in conversion feature. See the help under "Employment Income".
My Rebuttal:
The whole basis for the split pension amount is for the couple to pay less tax. For example a 50,000 income on one tax return pays more tax than a 25,000 income each on two returns. You really can't arbitrarily add this for the calculation of child support and spousal support. What the couple is trying to do is ensure taxable income is equally split so they pay less tax. You would have to assess what happened during the relationship with regards to pension and a variety of other factors to determine the correct split. I'm not going to spend too much time on this because it will affect relatively few people and the issues would be extremely complex.
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