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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 03-02-2011, 11:27 PM
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Default Claiming children

Wondered if anyone could shed some light here.....

My ex and I have two kids (10 and 15) we share custody 50/50.
Either one has primary control, it is just split.
In our final order we had it written in the order that each of us would claim a child for income tax purposes.
I make around 42K per year and she makes about 165K per year. She pays the offset amount for child support, which is about 1400 a month.
CRS is now telling her that she cannot claim a child because she pays support.
Huh? She pays the offset amount and the kids are with her 50% of the time.
So what happens now? I thought we had this worked out, now it just gets more confusing.
Anyone been in this situation??

What about the child tax credit amount each month?
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Old 03-02-2011, 11:49 PM
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Whichever CRA official told her that is wrong. She can claim one child and you can claim the other but I'm not going to get it into the backup argument as this topic has been beaten to death here.

Do a search in this forum on "equivalent to spouse" or "eligible dependant". You can also refer to the General Income Tax Guide for more information.
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Old 03-02-2011, 11:52 PM
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Default RevCan bliss

You're talking about the equivalent to spouse?

Yup.. welcome to the insanity of Cdn tax law as it relates to divorce... Don't try to make sense of it or you'll drive yourself mad...

Long story and will spare the gorier details but paying 4000$ in CS and SS, she claims she makes all but nothing (works in construction/design world, rife with cash). Her standard of living is about double mine while I live off credit line due legal bills and support payments. Now I owe 10000$ in taxes from last year, 5 of which is on her SS because she refuses to cooperate with an agreement.. and so I have no tax relief. Yes I should likely cease SS as there is no order. Trying to "do the right thing" which doesn't pay off...

She claims the equiv to spouse, pockets more cash and BECAUSE I give her 50000$ annual in CS & SS.... I'm not permitted to claim a tax break.

Lest this seem 'off the cuff' check CCRA site which states clearly:

you cannot claim this amount if any of the following applies:

.....
The claim is for a child for whom you were required to make support payments for 2010.


http://www.cra-arc.gc.ca/tx/ndvdls/t...sttns-eng.html

Last edited by dave9911; 03-02-2011 at 11:56 PM. Reason: added reference
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Old 03-03-2011, 09:58 AM
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Yes she can!

I am in the same boat....two kids...shared custody...judges order says we can claim one child each for tax purposes (although judges order doesn't trump federal tax laws)....

Here's what was suggested by my attorney...I am the one who pays the offset child support amount...

We did an adendum to our agreement, signed and submitted to CRA stating that the child support that I pay is for only the other child, not the one that I am claiming....

CRA does NOT allow you to claim a child if you are paying support for THAT child....

I've been doing this with CRA for 6 years now with no issues....

Good Luck!
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Old 03-03-2011, 10:07 AM
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As Mess has pointed out repeatedly the CRA accepts shared parenting claims for one child each on the basis that you are each paying support to each other. In a setoff arrrangement under shared parenting each party is technically making support payments to each other.

Look at the note here What are the situations in which you cannot claim the amount for an eligible dependant?

I thought I wasn't going to get sucked into this
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Old 03-03-2011, 11:52 AM
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Ya Ya accountant boy...you knew it was gonna happen
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