Sunday, June 17, 2012

Nova Scotia Child Maintenance & its effects

     The child support in Nova Scotia is 1 sided for the parent that has the children. the monthly money that is given to the parent that has the children is solely based on the income of the parent that does not have the children no matter how much the parent that has the children makes, for most they have a minimum wage job but there are a few of the lucky people that do not, that goes for either parent.

     I like many others have the minimum wage job while my ex has a job that pays well above minimum wage but yet what she makes hourly is not taken in to account for the money that has to be paid out by me to her, she gets my money plus money from the government and her job as well as more GST when it is issued plus baby bonus and or any other government program for single parents that is out there. most people that have the kids get more money monthly than they make at work while the one that does not have the children don't make much more than you would get while being on social assistance. The only way for the parent that does not have the children to get ahead is to have a job that is off the books (Which if you speak to a lawyer they will even agree to that) but even then that can come back and bite you in the end.

     also if at any time the parent that doesn't have the children gets a pay raise in any way other than a minimum wage increase it has to be claimed and thus the monthly payout is increased again so any pay increase is nullified and a hindrance for the one that got the raise for they are no better off. Also if child maintenance says you owe back pay then they will take their normal cut of your pay cheque plus they will take the arrears as well bit by bit, but in most cases like mine they were taking up to and including 90-95% percent of my pay every 2 weeks, so working 50+ hours a week on the books can net you after tax's $100-$150 if your lucky. but yet when you go and try to point out to the system what they are doing to you everyone says you called the wrong person and or department and you have to talk to so and so and the cycle restarts itself again. And with all of that being said the person paying the child support has no say in how the money is spent once it has been paid out which is wrong and should be changed.

     The intent of the money is to be there for the children to get them what they need food/clothes/schooling, but unfortunately most parents that get the money spend it on stuff they want or say they need instead of using it for the children. it is not uncommon for the single parent to have the newest toys TV's, Cell Phones, Computers, cars and such all because of the monthly income they have from the Ex's and the government and their own jobs as well (They live high on the hog while the other is living on the slop).

     What should be done is have the monthly maintenance fees be accounted for as to where they go and how it is spent, also the actual monthly payment should be calculated on both parents income, for example, my income from my job is lower than my ex's; so say if i make $11/H and she makes $13/H the $2 difference should come off of what Is paid to her (Putting me at a lower rate of pay and making it a little easier for us to live), this way the parent without the children can live in a 1 bedroom place and not a low income place and afford to have food on a regular basis instead of depending on friends and or family for help with money and or food to survive pay cheque to pay cheque. People have always cried unfair and or discrimination for one reason or another yet no one has ever done anything about the child maintenance that is paid on a monthly basis by the large portion of the population.

     This link here will give you a calculation of approximately how much you would have to pay monthly based on the number of children you have and what province you live in.

     And as it states on that link

  • The number of children;
  • The province or territory where the paying parent lives; and
  • The paying parent's gross annual income.

     At no time does it mention the person that has the children because to the government it does not matter how much they make just what you make and how much they can take from you. Also the rates that are to be paid have a habit of changing, the last change was done on December 31, 2011.

     If you base the monthly payment say on $26000 gross income a year the new payment would be $380.00 + 1.3% where as the old payment would of been $388.00 + 1.67%. As for the % after the dollar amount I assume is a monthly fee collected by the government probably for handling or what not.

     Now the $26000 gross income is based at $11/H, but after tax's all that is seen is $22039 (Approximate), that is almost $4000 that is not seen by the average person but yet is taken in to account when paying child support and should not be, that should make the monthly child support payment be $312 + 1.72% that's a difference of $68 a month, that can and does go along way for food and such.

     Now the Total Monthly Income (Gross) for $13/H is $2253.33 which in turn is Annually $27040.00 but has a tax pay out over the year of $4209 which in turn leaves them $22831 yearly ($1902.58 monthly) after tax's.

Canadian Income Tax Calculator 2012 was used

     With that stated  without any deductions of any sorts there is no real big difference in the pay at the end of the year, but when filing tax's there is a big difference in the returns that are given back between the 2 people. So why is it that child maintenance is taken before tax's are deducted yet when filing for your yearly tax return you can not claim it in any form.  "Q - Can parents claim or deduct child support payments for income tax purposes? A – This depends when the child support order was made. The Income Tax Act was amended in 1997. Before the amendments the rules were that the paying parent could claim child support payments as a tax deduction, and the receiving parent had to claim the support as income. If your child support order or agreement was made before May 1, 1997, the old tax rules continue to apply, unless you obtain a new order or agreement or vary the order after May 1,1997. Child support orders made or varied since May 1, 1997, cannot be claimed as a deduction by the paying parent and the receiving parent does not have to claim the support as income." Source

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