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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 02-13-2011, 01:32 PM
Whendoesitend Whendoesitend is offline
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Default Tuition Tax Credit

Hello all,

Just joined this very interesting and helpful forum.

I have been paying CS & SS for a couple of years now in addition to my portion of Sec 7 expenses.
Last year my son transferred over his tuition tax and education credit to my ex. This year (for 2010) I would like him to do the same for me. She can use take next year's credit. He agrees with the concept but is very uncomfortable in signing over given that my ex is freaking out and is refusing to give up this credit???

I understand that Sec 7 is payable net of tax credits, etc., but how do you enforce this?

It's too bad CRA will only allow one family member to benefit.
Has anybody dealt with a similar situation?
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Old 02-13-2011, 02:55 PM
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dadtotheend dadtotheend is offline
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I deal with this all the time.

It is the student that has to authorize the transfer of the credit. Your ex was given the credit by your son. She didn't own it so she hasn't given up anything.

Alternating the credit back and forth b/w you each year is reasonable. So is figuring out the value of the credit on one parent's return and paying the other parent half the value.

The other part of this is that the section 6 split s/b calculated after accounting for the benefit of the tax credits. Did you do that when arriving at section 7 amounts?

Last edited by dadtotheend; 02-13-2011 at 03:02 PM.
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Old 02-13-2011, 03:33 PM
Whendoesitend Whendoesitend is offline
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Thanks for reply.
We did not calculate section 7 expenses after credit. I pay the school my portion of the fees (before credit) and she does the same to the school directly.

The only problem with your reasonable suggestion is I am dealing with an unreasonable ex. (but apparently I am not the only one according to this forum).
I just don't want to pressure my son who is caught in the middle of this. However I don't think it's fair to lose out on $.
Her intention is to claim the credit again this year....end of story.
I suppose I could get a court order to stop her but the cost may not equal the benefits.
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Old 02-13-2011, 05:43 PM
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Quote:
Originally Posted by Whendoesitend View Post
Her intention is to claim the credit again this year....end of story.
Seems like she is prepared to put your son in the middle since he has to authorize the transfer.
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Old 02-14-2011, 03:07 AM
representingself representingself is offline
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Quote:
Originally Posted by Whendoesitend View Post
I suppose I could get a court order to stop her but the cost may not equal the benefits.
I know nothing about taxes.. but I am confused...

If the credit belongs to the child, then is it not theirs to give to whomever he/she wants???

Can a court order be obtained to stop your child from giving his Mother, HIS tax credit?

What he should do, is use it on his own tax returns and carry forward the unused amounts for when he is working full time and HE can use them.

That way there will be nothing to fight about...
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Old 02-14-2011, 11:59 AM
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If the credit belongs to the child, then is it not theirs to give to whomever he/she wants???
Yes, it belongs to him, but oftentimes the parents are paying the freight, so it makes sense to transfer it to them to assist with current schooling.

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Can a court order be obtained to stop your child from giving his Mother, HIS tax credit?
Not worth the expense and hassle.

Quote:
Originally Posted by representingself View Post
What he should do, is use it on his own tax returns and carry forward the unused amounts for when he is working full time and HE can use them.
A bird in the hand is worth two in the bush. YouTube - Bird in Hand - GEICO Commercial

Sane and reasonable parents find a way to get that money in the family's hands today, not 4-6 years from now.
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