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Wording for CRA when setoff child support paid

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  • Wording for CRA when setoff child support paid

    I have been asked about this a few times, so here is sample wording for a separation agreement where the parties are paying child support based on the setoff amount:

    Table Amount of Child Support Payable

    5.3 The children reside in a parenting arrangement that is unique to the children.

    5.4 The child support obligations of the parties, for the support of the children are unique to the children, the parties’ parenting arrangements and the parties’ overall settlement / releases.

    5.5 Commencing May 1, 2020 and continuing on the first day of each month thereafter, until there is a further written Agreement between the parties which changes his obligation, Harold will pay to Wanda child support for two (2) children at a rate of $x,xxx.00 which figure has been negotiated based off a Federal Child Support Guidelines’ income in 2019 of $xx,xxx.00. This payment will be made by e-transfer.

    5.6 Commencing May 1, 2020 and continuing on the first day of each month thereafter, until there is a further written Agreement between the parties which changes her obligation, Wanda will pay to Harold child support for two (2) children at a rate of $x,xxx.00 which figure has been negotiated based off a Federal Child Support Guidelines’ income in 2019 of $xx,xxx.00. This payment will be made by e-transfer.

    Tax Credits and Benefits

    5.14 As soon as this Agreement comes into effect, Wanda will apply to the Government of Canada for the Canada Child Tax Benefit relating to all children so that she receives the monthly amount to which she is entitled under current government policy. If required, both parties will sign a letter addressed to the CRA confirming the terms of the children’s current parenting schedule.

    5.15 Annually, when filing their income tax returns, Wanda will claim the eligible dependent credit for Child1 while it is available to her and Harold will claim the eligible dependent credit for Child2 while it is available to him. When the eligible dependent credit is not available for Child2 any longer the eligible dependent credit for Child1 will be shared either by rotating the claim annually or by sharing the tax benefit annually.

    5.16 Annually, when filing his / her income tax return, each party may claim a deduction for any eligible medical expense pertaining to any of the children if it was not reimbursed to him / her under the terms of a group insurance plan maintained for the child’s benefit in the applicable calendar year.

    5.17 If Wanda and Harold contribute to a child’s post-secondary education expenses, they will alternate annually, throughout the duration of the child’s post-secondary education, claiming any income tax deduction(s) and / or credit(s) pertaining to the post-secondary education expenses that the child is not required by the terms of the Income Tax Act to claim himself in that particular calendar year. If more than one (1) child pursues post-secondary education during the same calendar year, each parent will claim the income tax deduction(s) and / or credit(s) pertaining to the post-secondary education expenses for one (1) child that the child is not required by the terms of the Income Tax Act to claim himself in that year. If a child’s employment or other income is such that the child is required himself to use all of the available education deductions and credits in a particular calendar year, that year will not be considered for the purpose of the parties’ alternating claims for any available deductions and / or credits.
    Ottawa Divorce

  • #2
    BINGO! Thanks Jeff!

    Comment

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