Note that if you don’t have it in your agreement to claim the eligible dependent every other year you DON’T get tax benefits from the government. They are considered within the split of section 7 via the “net cost” calculation. The tax benefit comes off the gross amount which is then calculated according to %.
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Originally posted by rockscan View PostNote that if you don’t have it in your agreement to claim the eligible dependent every other year you DON’T get tax benefits from the government. They are considered within the split of section 7 via the “net cost” calculation. The tax benefit comes off the gross amount which is then calculated according to %.
Thanks.
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Originally posted by rockscan View PostNote that if you don’t have it in your agreement to claim the eligible dependent every other year you DON’T get tax benefits from the government. They are considered within the split of section 7 via the “net cost” calculation. The tax benefit comes off the gross amount which is then calculated according to %.
All you do is go to the online CRA site, make a claim that you have the child at least 40% of the time, and that's it. If they ask for evidence or your ex denies it, you just present your parenting plan.
It has NOTHING to do with section 7 expense. Also, it is NOT considered income of any sort. It's a tax free BENEFIT.
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Normally the person with custody is allowed to claim all tax benefits. Any benefits that “reduce” the cost of an expense are to be subtracted from the expense.
Example: your ex can claim the eligible dependent credit as the child lives with her. If she claims daycare costs, she would be able to claim daycare on her taxes. Let’s say the annual cost is $5000 and she receives a $300 tax benefit. You would split the $4700 cost rather than the $5000.
The eligible dependent credit can be split for shared physical custody and you have to have it in your agreement. Some people on here have wording that says something like dad will claim the credit in even numbered years and mom in odd years. As CRA does not accept it without something in the agreement. You can search the forum for that.
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Originally posted by calvinfive View PostAs a father who get's the child tax benefits, I can advise you have no clue what you are talking about! I don't have that in my agreement, at all, and I still get the tax benefits.
All you do is go to the online CRA site, make a claim that you have the child at least 40% of the time, and that's it. If they ask for evidence or your ex denies it, you just present your parenting plan.
It has NOTHING to do with section 7 expense. Also, it is NOT considered income of any sort. It's a tax free BENEFIT.
There are several posts on this forum about CRA denying the eligible dependent and how it has to be worded in your agreement. Stop giving out bad advice.
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Originally posted by rockscan View PostThe eligible dependent credit can be split for shared physical custody and you have to have it in your agreement. Some people on here have wording that says something like dad will claim the credit in even numbered years and mom in odd years. As CRA does not accept it without something in the agreement. You can search the forum for that.
CRA doesn't need it in the agreement. The only thing CRA needs is proof you have shared custody IF ex opposes it.
Don't even argue this one with me a father who is getting child tax benefits.
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Originally posted by calvinfive View PostNo it doesn't. See my post above. For further clarity, it's not even odd or even numbered years. I get it every month, every year. It's based on previous years NOA.
CRA doesn't need it in the agreement. The only thing CRA needs is proof you have shared custody IF ex opposes it.
Don't even argue this one with me a father who is getting child tax benefits.
Good for you for defrauding the government. There are plenty of posts on here from dads who tried the same thing WITH WORDING IN THEIR AGREEMENT who were still denied.
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Originally posted by rockscan View PostThere are several posts on this forum about CRA denying the eligible dependent and how it has to be worded in your agreement. Stop giving out bad advice.
Here is their requirements (https://www.canada.ca/en/revenue-age...you-apply.html)
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Originally posted by calvinfive View PostNo it doesn't. See my post above. For further clarity, it's not even odd or even numbered years. I get it every month, every year. It's based on previous years NOA.
CRA doesn't need it in the agreement. The only thing CRA needs is proof you have shared custody IF ex opposes it.
Don't even argue this one with me a father who is getting child tax benefits.
You’re talking about the CCB not the eligible dependent or activities credits.
It also states “on a more or less equal status” which you have to prove.
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The point isn't that your agreement says who collects tge benefits. The issue arises when you apply and they demand proof that you have shared custody, the wording in your agreement on the parenting time AND child support payments affects their determination of your eligibility. That is why CRA gives very specific examples of how the wording in your agreement needs to be set out, and why their are so many posts regarding this exact topic.
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Originally posted by blinkandimgone View PostThe point isn't that your agreement says who collects tge benefits. The issue arises when you apply and they demand proof that you have shared custody, the wording in your agreement on the parenting time AND child support payments affects their determination of your eligibility. That is why CRA gives very specific examples of how the wording in your agreement needs to be set out, and why their are so many posts regarding this exact topic.
Child support payments is irrelevant. I was paying her child support when we first started shared custody. Offset was applied nearly 8 months later. The only thing they need is proof you have shared custody. That's it. Though they never even asked for that in my case. Just a simple online checkbox "I confirm I have shared custody". Try the online application for yourself, you'll see.
Here is their requirement:
You share custody if the child lives with you and another individual in separate residences on a more or less equal basis.
The child might regularly alternate between residences in the following cycles:
four days with one person and three days with the other
one week with one person and the next week with the other
any other regular alternating cycle
Both individuals must be primarily responsible for the child's care and upbringing when the child lives with them. Each eligible individual will get 50% of the payment he or she would have received if the child lived with him or her all of the time. If you have just entered into a shared custody situation you have to apply for benefits.
Although a court order might state which individual should receive the CCB, the CRA is bound by the Income Tax Act, which is the legal authority the CRA uses to determine who eligible individuals are.
If you start or stop sharing custody of a child, let us know as soon as possible. For more information, see keep your information up to date.
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Originally posted by Googlelawstudent View PostThank you for your response Calvinfive. Sorry I didnt see this sooner. No, I am not obtaining any of the tax credits or benefits. I am too concerned about bringing up money at the risk of her decreasing time, as my time has slowly increased over time. I am also right at the 40% threshold, so recognize mom still has him a bit more + she uses that money in her calculation of monthly spending, so don't want to impact that at this time.
Mom makes less than I do. I by no means make a lot of money, but I pay her, as she only works part-time. She's never liked to work much lol, and now has moved in with spouse, who makes good money, so he is supporting her and my child. Long story short, she used to work full-time, but lost her job, and since moving in with him, never sought more work, as she does not need to.
As for the rest of your detailed post and perspective, thank you, i appreciate it.
Few Points.
1. Given you are at the 40% threshold, you have every right to, and should notify the CRA you are in shared custody arrangement. You don't need to bring anything up to her. You just apply directly to CRA on their website. It's very easy. Don't fear any retaliation form her. If she retaliates, then good. Let her dig her own grave.
2. If she worked full time and then part time, it's not your duty to pay her to make up for that. She is intentionally underemployed and should have income imputed to her.
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Originally posted by calvinfive View PostChild support payments is irrelevant. I was paying her child support when we first started shared custody. Offset was applied nearly 8 months later. The only thing they need is proof you have shared custody. That's it. Though they never even asked for that in my case. Just a simple online checkbox "I confirm I have shared custody". Try the online application for yourself, you'll see.
Here is their requirement:
https://www.canada.ca/en/revenue-age...dependant.html
If your "proof" is not worded in a very specific way regarding child support payments and parenting time, your claim is likely to be rejected and you need to get the wording of your order changes - typically requiring a trip back to court if the other party is not cooperative.
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Originally posted by calvinfive View PostNo it doesn't. See my post above. For further clarity, it's not even odd or even numbered years. I get it every month, every year. It's based on previous years NOA.
CRA doesn't need it in the agreement. The only thing CRA needs is proof you have shared custody IF ex opposes it.
Don't even argue this one with me a father who is getting child tax benefits.
My sister has shared custody and every year she has to provide proof of this, her ex doesn’t oppose anything, he doesn’t claim anything for the kids and for the past 4 years she’s had to provide her agreement and letters from the school stating she has shared custody. You may be lucky not to have to but it’s not always the case
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