“Grossed-up amount of child support”

Jurisdiction: Canada Canada

Child support is not tax deductible for the payor parent, which means that child support is a "net" amount, paid out of the parent’s after-tax income. In certain cases where gross income is used in the advisory guidelines, it is necessary to gross up the amount of child support, e.g. under the custodial payor formula or the exception for prior support obligations. To gross up child support, the parent’s marginal tax rate is used to calculate a before-tax or gross amount. Software programs can be used to assist in this calculation.

Source: Glossary of Terms - Spousal Support Advisory Guidelines July 2008, Department of Justice Canada