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  • Who claims what???

    Court order shows I'm primary caregiver, CS paid to me. Part of that CS is special expenses for daycare rolled into the CS. I receive CS, then write a cheque to daycare. Who claims childcare expenses? Both?

  • #2
    Sorry, I mean as far as CRA? I just want to know how people typically do deductions.

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    • #3
      Who claims what???

      You claim the tax expense but you would pay back the cs payor their portion of the rebate. So if their portion of S7 is 60% and you get a rebate of $500, its 60% of that = $300.

      Normally the tax rebate would come off what they pay you for the expense but since its rolled in cs payments you will have to determine what your rebate is at tax time.

      At least thats my interpretation of the law. Anyone else see it differently?
      Last edited by rockscan; 02-27-2015, 03:37 PM.

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      • #4
        Ok...thanks...so is there a way that the accountant could show just the portion of the daycare rebate? Also...the amount is a set amount every month...the court kind of arbitrarily said it will be $xxx a month...what happens on down the line when daycare is no longer needed? Would we go back to court? Sorry...just confusing...

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        • #5
          Originally posted by jass View Post
          Ok...thanks...so is there a way that the accountant could show just the portion of the daycare rebate? Also...the amount is a set amount every month...the court kind of arbitrarily said it will be $xxx a month...what happens on down the line when daycare is no longer needed? Would we go back to court? Sorry...just confusing...
          The only number you need to determine is your ex's annual income. The order should provide for this. If the doesn't and it just says the ex pays X in c/s you simple go to the c/s tables and do a reverse look-up, finding the c/s amount and then tracking it over to the income level.

          Once you figure out the ex's income, you then determine what their proportional share of the s7 is. They get that much back come tax time. How you determine the amount of the rebate returned is to do 2 tax returns. 1 with the daycare expense, and 1 without. Subtract the low rebate amount from the high rebate amount and divide by proportional share.

          Once daycare is done, you should file a motion on consent reducing c/s to be based solely off of income.

          Adding the two together was poor planning and lazy. It is likely just because it gave FRO a number to work with and that an income was also likely imputed.

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          • #6
            Who claims childcare expenses?
            It depends on how well the parents communicate.

            The ideal situation is that the parent who gains the greatest tax benefit from the deduction is the one who claims it, with the benefit shared between the parties at tax time.

            Otherwise, whoever pays the daycare claims it, with the benefit being deducted from the gross cost such that only the net is shared.

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