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

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  #11 (permalink)  
Old 07-30-2016, 01:46 PM
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The following applies for offset child support situations.

Taken from - What are the situations in which you cannot claim the amount for an eligible dependant?

If you and another person had to make support payments for the child for 2015 and, as a result, no one would be entitled to claim the amount for an eligible dependant for the child, you can claim this amount if you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, neither of you can make the claim.
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  #12 (permalink)  
Old 07-30-2016, 02:01 PM
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Quote:
Originally Posted by Soiled View Post
The following applies for offset child support situations.

Taken from - What are the situations in which you cannot claim the amount for an eligible dependant?

If you and another person had to make support payments for the child for 2015 and, as a result, no one would be entitled to claim the amount for an eligible dependant for the child, you can claim this amount if you and the other person(s) paying support agree you will be the one making the claim. If you cannot agree who will claim this amount for the child, neither of you can make the claim.
Is the case when the support payment is an offset amount? Technically, both parties pay support in offset.
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  #13 (permalink)  
Old 07-30-2016, 02:08 PM
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Yep, that was all regarding an offset situation. Both parents pay child support to each other, bringing the info in the post above into effect.

Have him be prepared to appeal a denial.
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  #14 (permalink)  
Old 07-30-2016, 02:10 PM
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Quote:
Originally Posted by Soiled View Post
Yep, that was all regarding an offset situation. Both parents pay child support to each other, bringing the info in the post above into effect.

Have him be prepared to appeal a denial.
Well, that makes no logical sense. One would think you could divide that credit somehow, each then taking the appropriate credit at the appropriate level of taxation.
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  #15 (permalink)  
Old 07-30-2016, 02:19 PM
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Yeah it's a poor system for split families with only one kid. Less of a headache in my situation where there are two kids, so we each just claim one and don't have any issue.
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  #16 (permalink)  
Old 07-30-2016, 03:18 PM
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Quote:
Originally Posted by Soiled View Post
Yeah it's a poor system for split families with only one kid. Less of a headache in my situation where there are two kids, so we each just claim one and don't have any issue.
You'd think the CRA would want it split as well.

Equiv to spouse amount renders the ex in this case with essentially zero income, which means no taxes and higher benefits. For the other party, it's just a deduction on income.
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  #17 (permalink)  
Old 07-30-2016, 04:13 PM
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Quote:
Originally Posted by MS Mom View Post
You'd think the CRA would want it split as well.

Equiv to spouse amount renders the ex in this case with essentially zero income, which means no taxes and higher benefits. For the other party, it's just a deduction on income.
Yeah, but when the ex claims it in the situation your asking about, it's deducting income at the lowest tax bracket whereas if your friend claims it, it is likely at a higher tax bracket, 'costing' the government more money when the deduction is used by him.

It follows the same logic as when a family is claiming child care. The lower income spouse is supposed to claim it. The deduction is then worth less to you due to tax brackets, and saves the government some money.

If they get along well enough to cooperate on those things the smart thing to do would be to have him claim it, and split the refunf and any increase, if any, in benefits. Fortunately for the pockets of the CRA alot of people can't work together with their ex well enough for that sort of thing.
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  #18 (permalink)  
Old 08-23-2016, 12:08 PM
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So I am actually going through this right now in Ontario. My tax court date is October and so far CRA has denied all my appeals because they do not seem to consider offset support as being that " both parents pay ". We have 50 - 50 custody for 2 kids and the third lives with me exclusively .
I tried to get my ex to sign an agreement further clarifying our lawyer prepared separation agreement but after much stalling she declined as she is afraid that CRA will try to re-coup her last 2 tax refunds and all the new CCTB payments she has received .

Can anyone tell me exactly what hoops you had to jump through to prove the 50 - 50 custody etc .

Letters from doctors, dentists , school ?

anything else ?
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  #19 (permalink)  
Old 08-23-2016, 12:50 PM
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The technicality is in the wording - it needs to say person A pays person B and person B pays person A.

In your case though if the 3rd kid lives with you exclusively you can use her for equivalent to spouse credit.

For the other child benefits, i am fairly sure that is split 50/50 no matter what.
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  #20 (permalink)  
Old 08-23-2016, 01:07 PM
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Understood that it has to do with the wording . Mine happens to say

" to satisfy each parties obligation to pay child support in accordance to the guidelines and based on income of X and Y , father will pay to mother Z "

Being in a vulnerable state at the time and very new to the whole separation scene , it did not dawn on me that the lawyer was not writing this correctly , because later on in the agreement she wrote

" mother may claim CTB and GST/HST credits for the first 6 months of the year and father may claim CTB and GST/HST credits for the latter 6 months "

Further along in the agreement it states

" the parties may each claim the eligible dependant credit for one child " and in the event that only one child qualifies for the eligible credit, mother shall claim in even numbered years and father in odd numbered years "

It is obvious to anyone reading it what the intentions of both parties was and the onus should have been on the lawyer to make sure their form letter documentation was current and correct .

Do I just need to sit tight and hope that logic prevails or do I have to nudge CRA in the right direction ?
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