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  • Pro-Rata Daycare Expenses

    Hello everyone,

    It's been awhile since I've been on here. I'm having a hard time with my x in determining figures for daycare expenses.

    This is confusing me to no end...

    Our seperation agreement states that I pay 56% pro-rata of expenses.

    Daycare is currently $850/month

    UCCB makes this $750/month

    In 2006 I paid $375/month ($4500)
    (I know my figures above are off because UCCB didn't start until June but I'm just trying to get calculations)


    My x is now claiming that I'm not entitled to any of the UCCB and she will deduct that from any refund I'm entitled to.

    What I'm trying to figure out is what I should be paying a month and what portion I should get back at the end of the year.

    What she plans on doing now is doing her return with and without daycare expenses and taking into account that I should pay 56% of daycare then give me whatever $ is owing to me.

    Is there any other easier way of working this out?

  • #2
    What is the access? 50-50? Who is getting the UCCB? Also, I assume your ex pays the entire daycare amount... and then you pay her?

    I would suggest you each pay the daycare separately. And each get a tax receipt. And file separately. done.

    And if you have 50-50, you both are entitled to 6 months of UCCB. With separate daycare payments, it makes it easier since UCCB is taxable.

    I really dislike the paying to one parent, and then they pay the entire thing. Especially when there are tax implications. It makes it really hard (as you know). Is you ex getting the entire UCCB? Don't forget, it is taxable income.

    And it makes it hard to determine the refund when the other person may have income or deductions outside the divroce. What if your ex contributed to charity? Her refund would go up? What if she moves into a different tax bracket. Her refund goes down. Yuck.

    I would get out of this situation ASAP. You do not want to be in a position where your ex "WITH HOLDS" money to you and can use it against you.

    Every single daycare I work with can give two receipts. Its not rocket science.

    Comment


    • #3
      Cats.Lion,

      Another option is to have the daycare centre issue two invoices, one for you and your obligated amounts and one for the other parent and their obligated amounts. This way both parents would have receipts in the amounts for their contributions come tax time.

      In regards to the universal daycare amount; There is no law the directs a recipient of same to put this periodic amount towards daycare costs as many people are receiving same even when their children are not attending daycare. By default of the system, the criteria is to be a CTB recipient and have a child under the age of six.

      lv

      Comment


      • #4
        I agree with DD and LV. I pay the daycare myself and have a receipt issued to me. If you pay the ex, you can't claim child care expenses.

        In a 50/50 parenting regime, each parent gets 6 mos worth. It doesn't matter if you're divorce/separation agreement says otherwise. The CCRA's position is that the law (or interpretation) overrides the agreement. I made the application for the CCTB and got it even though my agreement said that the ex will get it.

        I also agree that the CCTB has no impact on your 56%. The CCTB is not obligated to put the 100 bucks to the daycare unless you have agreed to that in writing.

        Comment


        • #5
          BTW, I filed a complaint to the CRA about their forms and their methods for determinnig CTB and UCCB. It is very mother biased and not divorce friendly. But yes, you are entitled when 50-50.

          Comment


          • #6
            Decent Dad,

            the only way you would get the CCRA attention in theri forms is to launch a lawsuit by applying the charter of rights and freedoms and on grounds of discrimination. Until then, I do supect nothing would be done.

            lv

            Comment


            • #7
              Seperate Bills

              Thanks for the replies.

              We don't have 50/50 and she claims all of the UCCB. I was doing my tax return on hrblock.ca and if I input my portion of daycare expenses it doesn't change anything unless I claim that my daughter lived with me in 2006 - so this is why I thought I couldn't claim the daycare expenses unless it was a 50/50 custody.

              If I can do this then it's exactly what I'll do - then I don't have to rely on her

              Comment


              • #8
                Silly me asked this question last year too - and it was answered in this thread: http://www.ottawadivorce.com/forum/s...p?t=674&page=2

                I guess I could now ask if there is any tax software which will allow you to claim daycare expenses without claiming a dependent?

                Comment


                • #9
                  CatvsLion,

                  I believe you can with "quick tax" by overiding the entry.


                  lv

                  Comment

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