Support payments — spousal support rules
Support
Section 56.1 and related provisions govern the tax treatment of support payments. Periodic spousal support received under a court order or written agreement is taxable income; child support received is not income.
Plain-language explanation
The Canadian tax treatment of support payments depends on the type of payment and when the agreement was made.
Spousal support (alimony): Periodic spousal support payments received under a court order or written agreement made after May 1997 are: - Included in the recipient's income (s.56(1)(b)) - Deductible by the payer (s.60(b))
This is the "inclusion-deduction" system — income shifts from the payer (usually higher income) to the recipient (usually lower income), creating a tax benefit.
Child support (post-April 1997): Under the "new rules" (agreements made after April 30, 1997): - Child support received is not income to the recipient - Child support paid is not deductible by the payer
This change eliminated the income-shifting on child support, reflecting the view that child support should not be dependent on tax rules.
"Pre-May 1997" agreements: Agreements made before May 1, 1997 may still use the old inclusion/deduction system for both spousal and child support, if they have not been renegotiated under the new rules.
What counts as "periodic": Payments are periodic if they are made at regular intervals (weekly, monthly). Lump-sum payments are generally not deductible or includable — they are capital payments, not periodic support.
Example
Diane and her ex-spouse have a 2022 court order specifying $3,000/month spousal support. Diane receives $36,000/year — included in her income. Her ex-spouse pays $36,000 — deductible from their income. No tax on child support of $2,000/month (post-1997 rules).
Amendment history
Significant changes to this provision. Older versions help you understand rules that applied in prior tax years.
Child support regime changed. Prior to May 1, 1997, child support was included in the recipient's income and deductible by the payer. For agreements and orders made after April 30, 1997, child support is neither taxable nor deductible. Spousal support retained the inclusion/deduction treatment.
Before
Child support included in recipient's income and deductible by payer
After
Child support received not taxable; child support paid not deductible (for post-April 1997 agreements)
Common questions
Is spousal support I receive taxable? +
Yes, if it is periodic support paid under a court order or written agreement made after April 30, 1997. Include it in income under s.56(1)(b). The payer can deduct it under s.60(b). Lump-sum settlements are not included.
Is child support I receive taxable? +
No. Child support received under agreements or orders made after April 30, 1997 is not included in your income and not deductible by the payer.
Can the payer deduct lump-sum support settlements? +
Generally no. Lump-sum payments (including structured settlements) are not "periodic" — they don't qualify for the deduction under s.60(b). The ITA requires regular payments at defined intervals.
Key terms
Related sections
Source: Income Tax Act, RSC 1985, c. 1 (5th Supp.), section 56.1. — Read the official text on Justice Canada
These summaries are for educational purposes only and do not constitute legal or tax advice. Speak with a CPA for advice on your specific situation.