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  • Tax filing questions

    Hello,

    I have a couple questions re: tax deductions/credits:

    1) I pay 70% of monthly child care costs to my ex, and she writes a chq to the daycare. Does it mean I can't deduct the costs as child care expenses?

    2) My ex receives UCCB but I don't, how do I apply to have UCCB split 50/50?

    3) My ex and I have just one child, does it mean I can't claim my child as dependant or equivalent to spouse?

    I did a seach but couldn't find anything recent or definitive. Please help.

  • #2
    If you have the child 50/50, you go to CRA website, the easiest way is to sign up for online access to your account.
    9. I currently have shared custody with my former spouse. How can we take advantage of the new rules?
    If you and another individual meet the criteria of a shared-custody parent, the person who is currently not receiving benefits should submit a form RC66, Canada Child Benefits Application (which is also a GST/HST credit child registration form) to the CRA, with a note or letter attached that explains the child's living arrangement.
    Download the form, fill it out and send it. Notice they also ask for a letter explaining the living arrangement. If you have a court order or a signed separation agreement outlining the living arrangement, make a photocopy and attach it to the letter.

    Consider this a first step, the CRA may come back and require some other confirmation. Just roll with it.

    The CCTB RC66 form is basically what sets you up to apply for everything else. If you try to claim the child as a dependant, they will flag you and probably reject it, until you are settled with the CCTB.

    Only one of you can claim the child as a dependant each year. In our divorced family, we alternate. Another option is that the higher earner could claim the deduction and split the amount with the other parent. It depends on how amicable you are. If you both try to claim it in the same year, the CRA won't argue, they will just deny both claims. You need to be able to co-ordinate with your ex to do this.

    With 50/50 shared custody, you may claim the daycare costs, but you need the receipts on file. Frankly if I were you I would pay the daycare myself and make sure I got receipts. In our family, we split up the months and the daycare issues us both receipts at the end of the year.

    Comment


    • #3
      Mess is bang on, with one exception.

      You only need the child 40% of the time to claim the CCTB/UCCB as a shared arrangement. Essentially 3 nights in 7.

      Comment


      • #4
        Thanks for the response, is the application using the online My Account the same as the CCTB RC66 application?

        Comment


        • #5
          I believe that the online application is the same. I applied using the online application and sent in additional documents by mail and it processed very fast. I also, called them to make sure everything was moving along as it should (but that's just the control freak in me ).

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          • #6
            My ex insists on paying the daycare directly and have me reimburse her. Presumably the daycare will only issue one receipt in her name at the end of the year. Do you think having the cancelled chq showing the amount I paid every month (same as the amount claimed on tax return), a copy of the receipt in my ex's name, plus a copy of the separation agreement stiputating the reimbursement of daycare costs will be sufficient for tax filing purpose?

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            • #7
              You'd have to discuss this with the CRA or your accountant. I doubt it.

              Any licensed daycare will issue two receipts. Speak to the daycare directly. Sounds like your ex just wants to keep all the receipts herself.

              Comment

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