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  • Child care deductions?

    So, stbx pays 80% of child care and I pay 20%. I've been searching on CRA website and it says that only the parent that lives with the child can claim child care?

    That can't be right, can it? As previously posted, we have no separation agreement but have been living separate for 15 months.

  • #2
    Maybe I have misread. Here is the link.

    http://www.cra-arc.gc.ca/E/pbg/tf/t778/t778-12e.pdf

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    • #3
      Unless you have 50/50 custody, I believe the "primary" parent is the only one who can claim the deduction...it does really suck but that is the way CRA works, basically if he pays you child support he cannot claim anything to do with the children, unless it is 50/50 custody.

      Best thing for this year to do would be to claim the child care and give him 80% of what the return amount is and you keep the other 20%.

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      • #4
        Oh dear. That will make stbx really pissed off.....

        I wish he would do his own research. It makes it a "kill the messenger" type of situation. I am about to have the babysitter do 80/20 receipts for us. Maybe I will just let him file and find out himself. I am trying to keep things as amicable as I can.

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        • #5
          All this is true, HOWEVER, the proportion you pay is supposed to be of the cost AFTER tax deductions, not the cost you pay to the care provider.

          Say the daycare cost is $10k. You claim it all and get a refund that's $2k greater than it would otherwise be. So you pay 20% of the remaining $8k cost of care, and he pays the other 80%.

          If you've both been paying all along, some math will be involved, of course.

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          • #6
            Spoke with stbx who says he has called his lawyer for clarification. He says that his sister and her ex (who are divorced) file for their individual portions of daycare expenses every year without problem? Is that possible?

            Is it just that they haven't gotten caught?

            I will call CRA myself tomorrow. Couldn't today as I was working....

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            • #7
              Originally posted by Rioe View Post
              All this is true, HOWEVER, the proportion you pay is supposed to be of the cost AFTER tax deductions, not the cost you pay to the care provider.

              Say the daycare cost is $10k. You claim it all and get a refund that's $2k greater than it would otherwise be. So you pay 20% of the remaining $8k cost of care, and he pays the other 80%.

              If you've both been paying all along, some math will be involved, of course.
              Is this documented anywhere? I'd like to have proof this is the way it works before I bring it up.

              So in my case I have shared custody of 2 children. My ex and I each claim 1. We used to both receive UCCB. Him longer than me because I let him claim the younger child. So would we add up both our childcare expenses, deduct both our UCCBs, deduct our tax deduction amounts and THEN split the remainder?

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              • #8
                What if the parent with access is paying 50% of the child care fees monthly?
                X would never agree to paying the monthly costs and at the end of year collecting other parent's portion of what was owed after tax deduction.

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                • #9
                  Then calculate the after tax cost and remit that to the ex monthly. If the ex doesn't like it they can take you to court and lose and pay your costs.

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                  • #10
                    Originally posted by Mess View Post
                    Then calculate the after tax cost and remit that to the ex monthly. If the ex doesn't like it they can take you to court and lose and pay your costs.
                    Thank you, Mess!

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