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  • #46
    Here is exactly how it was worded:

    Commencing XXXXX X, 201X, both parties shall move to a set-off child support arrangement. Based on current taxation year figures and incomes, XXX’s shall make a monthly payment of$XXX per month to XXX.

    Based on current taxation year figures and incomes, YYY shall make a monthly payment of $YYY per month to YYY.

    For convenience, XXXX agrees that YYYY does not need to write a separate cheque and that XXX will simply make a monthly payment of $YYY to XXXX, which will fulfill both of their support to one another.

    The parties agree to exchange financial information in ZZZZ of each year in order to determine if the current set-off amount is accurate or requires appropriate amendments.

    ***Really hope this is helpful to someone here. Basically, follow this or as close to this as it mimics the CRA website. The CRA said this allows enough specification yet ambiguity to satisfy their concerns.***

    ***They also said that an agreement does not have to be submitted yearly despite change of income/etc. This is to happen between the parties (which makes sense)***

    ***The CRA also said to make sure that each document is witnessed and is verifiable***

    Again, hope this helps. Any other questions, ask away.

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    • #47
      I also meant to share, the supervisor I spoke with at the appeals level made it clear there has been a real crackdown on this particular credit as she said it was/is abused. While I challenged her that wording shouldn't be the reason for such a thing, she stated that many applied and successfully got it in previous years without verification and/or deceit. My best to you all and keep those wordings in check. As I believe it was previously stated, don't call the CRA for advise on wording. You'll get 10 different answers from 10 different people. Basically, mimic their website. Good night.

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      • #48
        Originally posted by vocalfather View Post
        Here is exactly how it was worded:
        ...
        For convenience, XXXX agrees that YYYY does not need to write a separate cheque and that XXX will simply make a monthly payment of $YYY to XXXX, which will fulfill both of their support to one another.
        ...
        vocalfather - do you think this part is necessary? Would it not confuse CRA?

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        • #49
          Originally posted by billm View Post
          vocalfather - do you think this part is necessary? Would it not confuse CRA?
          Also, do you have to have in the agreement who will claim the eligible dependent?

          If not, then is it just okay to make sure that you both don't claim the same child?

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          • #50
            Originally posted by billm View Post
            vocalfather - do you think this part is necessary? Would it not confuse CRA?
            Hi BillM,

            After going back and forth with the CRA for over a year and finally having this claim approved, the wording I put forth including mentioning who claims what dependent is what got my claim finally approved. To answer your question, yes, I believe you need both pieces of information to successfully receive the credit. It's almost word for word what is used in their guide. I would suggest at least for last year and this year that it is deemed "valid" by them.

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            • #51
              Originally posted by vocalfather View Post
              Hi BillM,

              After going back and forth with the CRA for over a year and finally having this claim approved, the wording I put forth including mentioning who claims what dependent is what got my claim finally approved. To answer your question, yes, I believe you need both pieces of information to successfully receive the credit. It's almost word for word what is used in their guide. I would suggest at least for last year and this year that it is deemed "valid" by them.
              Did you have any luck or hope of getting the dependent claim retro approved for all years since separation?

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              • #52
                Ironically they approved it for the 2011 year when we were separated but then questioned it for 2012. They have now approved the 2012 in time for me to submit for 2013. From my understanding, you can have it reopened if you've never had it challenged or reassessed before. Good luck!

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                • #53
                  Originally posted by vocalfather View Post
                  Ironically they approved it for the 2011 year when we were separated but then questioned it for 2012. They have now approved the 2012 in time for me to submit for 2013. From my understanding, you can have it reopened if you've never had it challenged or reassessed before. Good luck!
                  What was the signed date of the agreement with the 'approved' wording?

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                  • #54
                    August of 2012 - original doc was Dec 2011

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                    • #55
                      Going through this issue for my son in BC. In his case there are 2 children in a shard custody situation. The Court Order states he has to pay offsetting support of $x based on his income of $x and her income of $x. The CRA will not allow them to claim one child each because under the Income Tax Act it states the order must state he has to pay $x and she has to pay $x. So what is it they don't understand about offset ! Unfortunately they have the Tax Court on their side so what I did was get a Consent Order to change a family order which was no problem. I'm still waiting for a Court date. Check " how to change a family court order in Supreme Court if you agree: Family Law BC." In my opinion the Lawyers and the Supreme Court need to get on side with the Income Tax Court so that this injustice is corrected. Like why should parents with children be penalized just because they are separated?

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                      • #56
                        How to qualify claim for eligible dependant

                        WE WON !!
                        The income tax department declined our claim for one dependant each because the wording on the Court Order was that my son had to pay an offsett amount of child support based on his income and her income. So for those with this problem the CRA simply will not accept that an offsett is the same as saying he pays her X and she pays him X. I checked and there is Court precedence where the Income Tax court declined based on their interpretation that the Order states only one person pays support.
                        Refer to the CRA site for shared custody and the amount for an eligible dependant for the correct wording.
                        I recommend when drawing up a Separation Agreement you use that wording however if you already have an agreement you must draw up an amendment to that agreement and remember to state that this was in effect from day one.
                        Same goes with a Court Order except it is more involved but not insurmountable all you have to do is apply to the court for a change in wording of the original order. In our case we did it our self with the consent of the spouse but you can have your lawyer do the work for a fee.

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                        • #57
                          congratuations!

                          Valuable information for those in a similar situation.

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                          • #58
                            Am I correct when I understand you cannot claim a dependent child if you live with a common law partner or re-mary?

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                            • #59
                              Originally posted by joblo View Post
                              Am I correct when I understand you cannot claim a dependent child if you live with a common law partner or re-mary?
                              You can't claim an eligible dependent as "equivalent to spouse" when you remarry or live common law.

                              Eligible dependent is one amount, equivalent to spouse is another, higher amount. This is applicable when your spouse doesn't work, or has a low income....you claim them as a dependent. CRA allows you to claim one child as this equivalent to spouse when you don't have a spouse.

                              Comment


                              • #60
                                Originally posted by joblo View Post
                                Am I correct when I understand you cannot claim a dependent child if you live with a common law partner or re-mary?
                                You can't claim the Amount for Eligible Dependent if you remarry or have a common-law partner. This used to be called the equivalent-to-spouse deduction, so it makes sense that if you have a spouse, you can't claim an equivalent.

                                Comment

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