Lump-sum payments

An amount paid as one lump-sum will generally not be considered a support payment because it is not paid on a periodic basis.

However, if periodic payments required by a court order or written agreement were overdue and one payment is made to bring them up to date, the lump-sum payment would be considered a support payment.

Also, a lump-sum payment would be considered a support amount if it is paid under a court order clearly stating that retroactive support has to be paid for a specific period that happened before the court order.

The following are generally not support payments:

For more information, see Income Tax Folio S1-F3-C3, Support Payments.

Example – Lump-sum payments

Jason and Tracy have been living apart since August 2021. In their court order, Jason has to pay $500 per month for Tracy’s support. In June 2022, Jason lost his job and was unable to make the spousal support payments. In February 2023, he got a new job. He owes $4,000 in support payments. Jason and Tracy returned to court where it was agreed that Jason will pay $3,500 of the $4,000 he owes. The other $500 will not be paid. The $3,500 lump-sum payment has released Jason from his obligation to pay these overdue amounts. The lump-sum payment does not qualify as a support payment because it was not part of the original agreement.


Forms and publications

Page details

Date modified: