CCTB and CDTB Payments

[dftr]

Hello,

My ex and I separated towards the end of 2009. Our only child together a son who is 9 with special mental health needs, receives a Child Disability Tax Benefit in addition to the Canadian Child Tax Benefit. The child resides with her primarily. We do have joint custody, however we do not have times and schedules that we keep. Visitation is just arranged as we go due to schedules and the fact she has family in the U.S. and is there frequently. (My son is a Canadian citizen). I am the only one that claims the CCTB and CDTB for him.

Last year the CRA started sending me letters demanding for more "proof" I was separated - wanted a letter from an employer confirming my ex and I no longer lived together, etc. After several responses from me they left me alone.

Now I have received a notice at the end of 2011 stating my claim for my child as my dependent for 2010 (amount for eligible dependant and amount for children) is being reviewed, with a 5 page letter. They asked again for a Schedule 5, his SIN, etc, and then wanted extensive documentation proving I have custody of him. I faxed in a response and have now been notified those claims have been disallowed and I owe them money and interest.

I don't understand what the issue is regarding who has custody for how many days etc when the child has 2 parents and the agreement has been made between the two of us regarding who will claim the CCTB and CDTB benefits. We are not splitting the benefits. This is not complicated. I am claiming them.

So I cannot claim my son for 2011 now? It's as though he doesn't exist? How is that possible?

Thoughts? Thank you

[ddol1]

I have asked about this. Normally goes to the parent that has the child in the possession (where the child lives) and they look for the child to be living with you. If your child is actually living in the US - I believe no CTTB etc is paid out, after all the child is living in the US or in the US the majority of the time.

So with your paperwork in hand, call the CRA and discuss this first hand. You will get the law, the tax law regarding your situation. If you do not trust thier answer next I believe is to get a lawyer involved.

[shellshocked22]

With respect to the above poster, I would strongly suggest seeing an ACCOUNTANT - NOT a lawyer.

Lawyers know little about tax issues. Plus accountants are MUCH cheaper.

Do some research on the CCTB on the CCRA website; its actually pretty good in explaining it.

However, my understanding is that in order to claim CCTB, you need at least 40-50% custody of the child. Also, assuming its fairly evenly split between the two parents (ie. custody) then each parent must claim 50% EVEN if one parent's income effectively disallows any benefit. Doesn't matter if the other parent "allows" you to take all of it.

I've also heard Rev Canada is very "picky" about Sep Agmt having proper language in this regards. So, do some reading on the CCRA site and if you think you should be entitled to it, see a GOOD accountant who hopefully can help you out.

Good luck !

[ddol1]

I will not argue as an accountant will get it done. I did not state a family law lawyer, in my working world every law firm we dealt with had an accountant on staff. As to the rates, I paid different rates depending on what services needed to be done.

More to the point, CRA and other similar government offices our there to help you and that they will - first ensure you have the proper information they will need to help you. They will really work hard at helping you get as much advantage from each situation including turning a CRA decision around. They want to help you and if you give them a chance they should solve your issue as well as they have always solved mine. If these monies are your right to have often they are forced to make decisions based on the information they have.

To go running to any professional first will cost you plenty of money. Yes ,learn the rules in question (You can call tthe CRA office and they will help you with this as well) Get your info, get the documentation and again call the CRA direct - if this money is your right to have they will work with you so you do get it. Exhaust this free assistance before ever thinking of spending a good deal of money on any professional - you may get what you want by asking them, and then providing them the information or proof they need.

[Inch]

With CCTB they made changes to who receives this. I was informed yesterday that I will lose half of the money each month as my ex has our child for 3 days on a weekend. I looked it up on the internet and seen the change but was not aware of this.
Now for Rev. Canada last year I claimed my child, and also my ex claimed her. I called for advise and they told me I was the one who should claim her and he can't and later that year he was audited. Well their advice went out the window when I was given the wrong advise from my lawyer and government. I received a notice at the end of last year saying I have to pay back more then I received from income tax due to them letting my ex claim her for income tax. Do as much research.

[NBDad]

If you have shared custody (ie. at least a 60-40 split) you are in a "shared custody" arrangement and both of you are eligible to claim CCTB/DtCB/UCCB. The way it currently works is you will both get 50% of what you would get if you had the child full time, spread over 12 months. (previously it was a 6 month - 6 month split...ie. you'd get the full amount 6 months a year, and then nothing for the remaining 6 months).

This is NOT a recent change, it has always been this way. The only difference is they have recently made changes to how it's paid out in this situation.

3 days every weekend is 3 days in 7, or approx. 42%.

For income tax purposes, only one of you can claim the child /year in this situation. If you cannot agree, and both try to claim, NEITHER of you will be permitted to.

In sole custody situations (ie. where one parent has the child over 61%...this is a none issue).

[pokeman]

rev canada told me it goes to custodial parent - they really didnt get into % , so i dont claim any of these nor income tax , i have shared custody to keep alberta's numbers up that dad's are getting treated fairly but I have less than 12% access time a month ...