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CRA Eligible Dependant Credit

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  • #16
    Having same issue here, because separation papers say: offset amount as per federal guidelines I am no longer allowed to claim my child
    Originally we had agreed to each claim a child but now my ex refuses to change wording as it benefits her and more $ in her pocket!
    It’s ridiculous
    CRA requesting money back and I’ve challenged them 3 times now

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    • #17
      Sorry, if I'm not following the obvious here, but in my case my wife is having an income imputed for spousal support as she does not presently work. Am I to understand the following to be true:

      a)Since I am the payor of child support I cannot claim my child as a dependent, even though I am already paying tax on the income earned to pay it?

      b) There may be a way to have me claim it IF I can have it put in the final agreement that my wife agrees that I can claim my child on my return? There is presently no agreement re custody in place, I have been paying table child support without prejudice on my lawyer's recommendation for the past 12 months. Lacking said agreement, I intend to claim her as a dependent for last year.

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      • #18
        Originally posted by shepherd View Post
        Sorry, if I'm not following the obvious here, but in my case my wife is having an income imputed for spousal support as she does not presently work. Am I to understand the following to be true:

        a)Since I am the payor of child support I cannot claim my child as a dependent, even though I am already paying tax on the income earned to pay it?

        b) There may be a way to have me claim it IF I can have it put in the final agreement that my wife agrees that I can claim my child on my return? There is presently no agreement re custody in place, I have been paying table child support without prejudice on my lawyer's recommendation for the past 12 months. Lacking said agreement, I intend to claim her as a dependent for last year.


        You can’t claim them as an eligible dependent if you do not have full custody and/or you do not have an agreement on custody that clearly outlines your ability to claim them.

        In most cases the agreement clearly outlines the parent who has custody has the right to claim the child as an eligible dependent.

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        • #19
          Originally posted by shepherd View Post
          ...
          b) There may be a way to have me claim it IF I can have it put in the final agreement that my wife agrees that I can claim my child on my return? There is presently no agreement re custody in place, I have been paying table child support without prejudice on my lawyer's recommendation for the past 12 months. Lacking said agreement, I intend to claim her as a dependent for last year...

          What Rockscan already mentioned.


          The only way you could try to claim the "eligible dependant" tax credit, even if your ex agreed you would claim it (written up in an agreement/court order), is:


          - if you had "shared custody", and you both were paying each other child support. It sounds like that is not the case here, since you mentioned you pay table child support. And if you're paying table child support, you must not have actual "shared custody" - you may have joint, but not falling into the definition of "shared custody".




          And even then, good luck with the CRA.

          Comment


          • #20
            As an anecdotal aside;


            In my case, having "no written agreement" in place was helpful with the CRA, as that was a plus for me, back in the day. But CRA will still challenge you.


            In my own case, I had:
            - actual shared custody (presumed shared - we did not have an order in place or agreement stating otherwise)


            My ex was not entitled to the credit (she was married), therefore I claimed it.
            (that was probably key).


            CRA still denied me though. I challenged that with a review.


            Because my ex was married by then (shown in CRA records), that disqualified her. CRA still wanted to deny me too, but because there was no agreement stating actual child support paid, I lucked out. They granted it to me, and it's been mine since.




            (I was lucky though - I would not count on such luck again...and "not" having a written agreement is probably never good, in any other situation)
            Last edited by dad2bandm; 02-11-2020, 04:46 PM. Reason: Typo.

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            • #21
              So as someone starting mediation with an agreed 50/50 custody and parenting and an even split of assets what do I want to ensure is in the agreement that ensures this is solid and that one parent can't shaft the other with the CRA by claiming first or something else?


              Uneven number of kids unfortunately. For the odd one out can we write into the agreement odd years for one and even for the other? Or will that just not work with the CRA?

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              • #22
                I think you only need one kid for eligible dependent credit.

                So, if you want to be sneaky, say that you get to claim the youngest kid and she gets the older two.

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                • #23
                  But what language?

                  Oh so as long as we each get one it’s ok.

                  What language would work and what language will cause me a problem with the CRA later on? As long as we detail specifically that mom gets to claim Fred and George and dad gets to claim Ginny is it all good? Will specifying who claims which child avoid the issues noted up thread?

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                  • #24
                    Alternating years

                    For those wondering how to outline it in a SA. Presently I claim one child and ex claims another. You can only claim one dependent anyway. In 2023 one will be 18 and my agreement states in that year ex claims X and I will claim X the following year. Odd and even years stated (wife even years and husband off years) until youngest child reaches 18.

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                    • #25
                      Makes it simple since the youngest are twins - so we can each claim one by name and it doesn't matter who claims the older of the three.


                      Can anyone think of any reason why it might matter who claims the older child and one of the younger children?


                      So if we state in the SA who claims each child as dependent that will satisfy the CRA regardless of any child support arrangements? We are about equal in income right now and will be 50/50 so I expect some sort of automatically re-adjusting mechanism in the agreement to account for changes in income levels over time. I am fully in support of that, just making sure I am being as proactive as possible to avoid problems down the road.


                      What happens if ExW claims all three with the CRA before I do regardless of the agreement? I don't expect that situation but it is helpful to understand what might happen in that case.


                      Thank you all so much for reading and sharing your experience and knowledge. We will be working with a very good mediator and each have a lawyer that will review the final agreement but I am educating myself as much as possible to save time, expense and conflict as much as possible. I appreciate your time.

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                      • #26
                        I don’t believe you both can claim an eligible dependent each year. You can only claim one each year which is why others have listed the “in odd years/even years” lines in their posts.

                        Go back and read through this thread as well as others in this forum. This is why agreements have specific wording in them on this topic.

                        Comment


                        • #27
                          Sa

                          You can only claim one as eligible dependent so you or your ex can’t claim more than one child. I would make it easier and say the younger two that are twins and that way there is never any adjustment or year to year. I have 4 children but have claimed the same child year after year. Same with ex, he claims another child. The two youngest since the older two are over 18. It it written that when child X is no longer eligible at age 18 that we go year to year with the youngest until that child reaches age 18. The only time it becomes a hassle is when there is one child and it isn’t written in the agreement. To satisfy CRA my agreement is written “the parties support the children without contribution from the other parent”. Section 7 is addressed in another area and that goes on to say we split expenses like sports etc. I added anything over $250 must be mutually agreed upon otherwise ex goes out and will spend exorbitant amounts on stuff they don’t need expecting me to pay. If you are 50/50 and no support paid on either side there is no reason to confuse and say x owes Y 400 and Y owes ex 400 just to say it $0. Its ambiguous and muddies the water. Keep it simple. Nobody owes anyone anything.

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                          • #28
                            Originally posted by rockscan View Post
                            I don’t believe you both can claim an eligible dependent each year. You can only claim one each year which is why others have listed the “in odd years/even years” lines in their posts.

                            Go back and read through this thread as well as others in this forum. This is why agreements have specific wording in them on this topic.
                            Yes you can most definitely. You just can’t claim the same child. Odd/even refers to a situation whereby there is only one child to claim between the parents. You alternate who claims the child.

                            Comment


                            • #29
                              Correct that you can each claim a child as long as the SA is written in such a way as not to preclude it. Each "household" is generally limited to one eligible dependant credit and if either of you find your marital status changes such that you have a spouse for tax purposes then eligibility for the credit ceases for subsequent years.

                              Where you do "share" all kids is re: CCB and related provincial credits. We know that it defaults to the female parent and that paperwork is normally done in hospital after birth but in a shared custody situation the other parent (usually dad) needs to apply for CCB, then CRA will divvy it up. This is often overlooked.

                              Comment


                              • #30
                                Thank you so much! I hadn’t considered CCB yet and this is great information.

                                What if I apply for it as shared custody but my ex does not apply? Will CRA adjust hers or deny mine if she doesn’t do anything?


                                Sent from my iPhone using Tapatalk

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