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  • Shared Daycare Costs - after tax

    Ok with the new $1200 allowance I was wondering if that is theoretically split between 'split' parents.

    My situation is that I pay half of the after tax daycare costs. So if daycare costs just dropped by $1200 should I now be paying $50 less a month? Or am I missing something?

    Also, probably a question I'll have to clear up with my lawyer, but the New Guidelines come into effect May 1st. Does that mean my may 1st CS should go up to the new guidelines or June 1st? (as it is we still don't have a set agreement on CS and review of CS - We've discussed review and adjustment by May but I wanted a review by May and adjusted for June 1st.)

  • #2
    A darned good question that I was thinking about as the budget was coming down. Is it to be shared and/or how does it impact Section 7 expenses...

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    • #3
      I was thinking about this entire $1200 thing as well. How does it work in shared parenting (okay... I can probably guess but I wont make a dig... oops too late).

      Also, from my understanding, it is not like you get a cheque for $1200. It is a tax deduction or something like that. On the lower income earner?

      As usual, the rules/guidelines will be as clear as mud. I can't wait for the first SCC decision over this.

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      • #4
        I was under the assumption that the reciever gets a cheque for $100 every month - starting this month... and there were to be no 'clawbacks'...

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        • #5
          Here is some info from the Finance Site:

          >>>
          The new Universal Child Care Plan provides benefits directly to families as well as support for the creation of new child care spaces.

          Budget 2006 proposes to introduce the Universal Child Care Benefit as of July 1, 2006. This new benefit will give all families $100 per month for each child under age 6. This will put $2.1 billion per year into the hands of parents.

          Universal Child Care Benefit—How Do I Apply?
          Families who receive the Canada Child Tax Benefit (CCTB) will receive the new benefit automatically.
          Families who do not receive the CCTB will be able to apply for the new benefit by submitting a completed CCTB application form to the Canada Revenue Agency.

          The Universal Child Care Benefit will be taxed in the hands of the spouse with the lower income and will not reduce federal income-tested benefits. The Universal Child Care Benefit will provide direct federal support to 1.5 million families and more than 2 million children.
          >>>

          So I skipped on over to the CRA site to get my CCTB form and my $100 per month (or $50 per month). Now, I haven't looked at a CCTB form in a while...

          http://www.cra-arc.gc.ca/E/pbg/tf/rc66/rc66-04e.pdf

          Well, well, well. What a biased form. hmmm... I have to get a NOTE from my ex. Right.

          Okay, so it really does not say about joint, shared or split custody? So I downloaded the handy-dandy guide (T4114).

          http://www.cra-arc.gc.ca/E/pub/tg/t4114/t4114-05e.pdf

          hmmm... again I have to get something in writing from the ex about alternating years. Yeah, knew there was a reason I junked this form.

          Here is the on-line benefits calculator

          http://www.cra-arc.gc.ca/benefits/ca...or/menu-e.html

          hmmm... I think I'll apply and find out what really happens.

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