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CRA Eligible Dependant Credit

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  • #31
    Yes, if you apply (and send the supporting docs if and as requested) it should be very straightforward for them. They will adjust her eligibility accordingly. Just do apply! Its a way better credit these days than when my kids were younger...

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    • #32
      Originally posted by UnderPressure View Post
      Oh so as long as we each get one its ok.

      What language would work and what language will cause me a problem with the CRA later on? As long as we detail specifically that mom gets to claim Fred and George and dad gets to claim Ginny is it all good? Will specifying who claims which child avoid the issues noted up thread?

      Meh, it's CRA - they interpret things their own way, and no matter how clear you are in the order/agreement, they still cause you issues.
      CRA folks are not happy people. They are not knowledgeable people about their own rules. You are at their mercy.




      For wording, specifically, I would say the *most* important wording, would be to make sure that you specify, that each parent pays the other child support. Jane and Joe will share equal custody of the kids. Because they share custody of the kids, Jane will pay Joe child support of "blah". Joe will pay Jane child support of "blah".


      If you start putting in wording that CRA looks at, that only one parent is ultimately paying child support, they will deny that parent the credit.



      Don't write anything like "leaving Joe to pay offset support of X dollars to Jane." That hates-their-job CRA agent reviewing your claim, will deny you.

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      • #33
        Excellent this is just what I needed. Thank you!

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        • #34
          So just to be clear, here is the CRA guidance on this https://www.canada.ca/en/revenue-age...dependant.html

          If you and another person share custody of a child throughout the year, and you each have a clearly established requirement under a court order or written agreement to make child support payments for that child, normally, neither of you would be able to claim the amount for an eligible dependant for that child. However, in this case, one of you may still be able to claim the amount, as long as you and the other person agree who will make the claim. If you cannot agree, neither of you can claim the amount for that child.

          A court order or written agreement that calculates child support obligations based on a statutory scheme (such as The Federal Child Support Guidelines) does not necessarily establish a requirement for both parents to make child support payments for purposes of the Income Tax Act. Also, the fact that both parents’ income is used to calculate child support is not sufficient to establish a requirement that both parents make child support payments. Unless the order or written agreement clearly establishes that both parents are required to pay child support, only one parent is considered to be making child support payments. In this case, the payer cannot claim the amount for an eligible dependant, and the recipient may be able to claim the amount, provided they are otherwise eligible to claim the amount.

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          • #35
            so it appears, you must have a clear agreement that you both pay (no off-set) and that you have shared custody. You must also have a written agreement as to which of you is claiming a particular child.

            Am I missing anything here?

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            • #36
              Originally posted by QueryGuy` View Post
              so it appears, you must have a clear agreement that you both pay (no off-set) and that you have shared custody. You must also have a written agreement as to which of you is claiming a particular child.

              Am I missing anything here?
              Pay each other the money and be able to prove that.

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              • #37
                I just had a thought. Can agreements calculate CS the usual way, have the one offset payment, but then have a separate requirement that the recipient parent has to pay $1 per month in support to the higher income parent.

                This way, you avoid the large sums of money changing hands, but still have both parents paying each other, as per CRA’s ridiculous rules.

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                • #38
                  Originally posted by Janus View Post
                  I just had a thought. Can agreements calculate CS the usual way, have the one offset payment, but then have a separate requirement that the recipient parent has to pay $1 per month in support to the higher income parent.

                  This way, you avoid the large sums of money changing hands, but still have both parents paying each other, as per CRA’s ridiculous rules.
                  Offset does not work, bulk amounts do not work.
                  I have heard some people state that wording surrounding offset can work.
                  Best:
                  -agree to imputed income of $13K
                  -each party pays the other via electronic transfer (CRA wants to see proof).

                  This mess is bad government.

                  Comment


                  • #39
                    Originally posted by pinkHouses View Post
                    Offset does not work, bulk amounts do not work.
                    I have heard some people state that wording surrounding offset can work.
                    Best:
                    -agree to imputed income of $13K
                    -each party pays the other via electronic transfer (CRA wants to see proof).

                    This mess is bad government.
                    Let me clarify with some numbers:

                    Parent A owes $1200
                    Parent B owes $1000

                    Currently, CRA wants parent A to pay the entire $1200, and parent B to pay the entire $1000. That causes some potential issues if either parent does not have that kind of money to throw around. I know when I was first divorced finances were really really tight, and losing $1000 temporarily could have been a disaster.

                    As an alternative, can they offset a portion of their child support payment? For example, the separation agreement can say:

                    "The parents agree to offset the first $999 of their child support payments to each other."

                    As such, Parent A has to pay $201 per month, and Parent B has to pay $1 per month. Both parents are technically paying, making CRA happy, but you don't have the large sums of money changing hands.

                    Comment


                    • #40
                      There is no need to avoid the term set-off or off-set.
                      And there is no need for both parties to pay an amount.

                      The issue comes with agreements where only the final calculation is mentioned.

                      Your agreement/order simply needs to say that parent A pays x, parent B pays y, and therefore parent A pays the set off amount of z.

                      If you have even numbered kids, you each claim half, otherwise you alternate years.

                      Comment

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