Ottawa Divorce .com Forums

User CP

New posts


  Ottawa Divorce .com Forums > Main Category > Divorce & Family Law

Divorce & Family Law This forum is for discussing any of the legal issues involved in your divorce.

Closed Thread
Thread Tools
Old 03-16-2006, 06:10 PM
jennw jennw is offline
Join Date: Oct 2005
Posts: 34
jennw is on a distinguished road
Default Daycare/Support/Tax Question

Hi there...I have a general question. If support is paid, along with and additional amount towards daycare..paid as a total to the mother and not to the daycare facility, can the daycare portion be used as an expense on taxes?

As well, if the seperation agreement states that the mother will claim the daycare, is that really applicable for tax purposes?? (there is no communication between father and mother, so cooperation is not likely).

Thank you!!
Old 03-17-2006, 04:45 PM
Jeff's Avatar
Jeff Jeff is offline
Join Date: Sep 2005
Location: Buried in paperwork
Posts: 591
Jeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud ofJeff has much to be proud of

I'm not an accountant, but my understanding is that the person who actually pays the day care expense is the one who takes the deduction on their income taxes.

So, if mom pays the daycare and dad reimburses mom for this, then mom would be the one to take the tax deduction. Dad wouldn't get a tax deduction for the portion of the support that related to daycare.

However, in calculating how much dad should reimburse mom, the tax benefits for mom should be taken into account. Right now, you can make a deduction of up to $7,000 per year per child for daycare expenses.
Ottawa Divorce
Old 03-17-2006, 07:13 PM
hubby's Avatar
hubby hubby is offline
Senior Member
Join Date: Nov 2005
Posts: 522
hubby will become famous soon enough


OK so one spouse pay the daycare and gets the tax credit at the end of the year. Where in the guidelines is there mention about daycare or section 7 expenses being offset to the other spouse based on the fact that the other spouse is taking advangtage of the tax credit?

Is there a said formula that one can use to determine what the paying spouse should pay when taking the tax credit into account?

As far as I was aware is was based as a % of the incomes?

As well, it may be advantageous for the higer paying spouse to strike a deal with the other spouse to take the tax credits to reduce his income to a lower tax bracket?

Come on, I wanna hear from some accountants out there ... I know your out there!


Last edited by hubby; 03-19-2006 at 12:12 AM.
Old 03-20-2006, 08:57 PM
Jenny Jenny is offline
Senior Member
Join Date: Dec 2005
Location: Ottawa
Posts: 225
Jenny is on a distinguished road

Hubby I am not an accountant but you can't choose who claims the benefit

From CRA
5. I have recently separated from my ex-spouse and because my family income is much lower, I would receive a greater amount of benefits if I were the sole recipient. Why is this no longer possible?
By letting individuals pick and choose who between them will be the eligible individual, the CRA is not being fair to all of its other benefit clients. If a child lived with one individual only, that individual would be the eligible individual (assuming all of the other eligibility criteria have been met) without regard to that person's family income. If a child resides with two individuals, and they are both responsible for that child's care and upbringing, it is most fair and equitable if both share benefit eligibility for that child, regardless of the amount of the benefit, if any, that each will receive. It is entirely possible in a situation of shared eligibility, that one individual will receive no benefits at all during their six-month rotation, due to their high family income
Closed Thread

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

All times are GMT -4. The time now is 01:32 AM.