Hi Folks:
Ok, my ex and I will be each having 50% custody of our two children. My question is with regard to the "equivalent to married" or "dependent" tax credit which is a little over $10,000 (since a tax credit, worth about 15-20% of tax savings or around $2,000).
Normally, if one partner pays child support they lose this valuable tax credit. However, if 50% sharing of the kids, and if both partners work and hence pay child support - even is offset basis, then it meant that neither would get the tax credit. REv Canada revised this unitended consquence by clarifying that in this scenario, each partner could claim one child for the equivalent to married tax credit.
My question is, I qualify for this EXCEPT my spouse at this point is not working. She's trying to find a job but no luck yet. Let's assume she doesn't get a job, does that mean that I don't get the "equivalent to married" tax credit ?
If so, is there is a minimum amount of income she needs to make or even $1 a year ? If so, would it work if she agreed to even a nominal inputed amount of income (say $1,000 a year) just to satisfy the rules.
This is a signficant potential tax savings for me so any help is appreciated.
Thanks
Ok, my ex and I will be each having 50% custody of our two children. My question is with regard to the "equivalent to married" or "dependent" tax credit which is a little over $10,000 (since a tax credit, worth about 15-20% of tax savings or around $2,000).
Normally, if one partner pays child support they lose this valuable tax credit. However, if 50% sharing of the kids, and if both partners work and hence pay child support - even is offset basis, then it meant that neither would get the tax credit. REv Canada revised this unitended consquence by clarifying that in this scenario, each partner could claim one child for the equivalent to married tax credit.
My question is, I qualify for this EXCEPT my spouse at this point is not working. She's trying to find a job but no luck yet. Let's assume she doesn't get a job, does that mean that I don't get the "equivalent to married" tax credit ?
If so, is there is a minimum amount of income she needs to make or even $1 a year ? If so, would it work if she agreed to even a nominal inputed amount of income (say $1,000 a year) just to satisfy the rules.
This is a signficant potential tax savings for me so any help is appreciated.
Thanks
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