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  • Amount for an Eligible Dependant

    Okay, if someone can help me out here, I'd really appreciate it. As I was preparing/doing the first cut of my 2010 taxes, there's something that I've noticed that I wasn't aware that I could claim.

    Basically, what used to be the "equivalent to spouse" deduction allows an individual who is separated and is not claiming the spousal amount to effectively designate just one of their children for this tax credit. It seems to me when I read the conditions, that I should be able to claim this - and I haven't in the past. My questions are this:

    1. Do I have this right? As a single father who has sole custody for the last 2.5 years, am I right that I should be claiming this?

    2. If #1 is yes, then how would it work if both parents have shared and equal custody? Who would get to claim this credit or would it be split? We have been separated since July 2007. We had equal and shared custody for the remainder of 2007 and up until November of 2008 at which time I had sole custody. If I'm right that I should be claiming this for 2009 and 2010, how would it work for 2007 and 2008? If she has claimed it, and if I can't, that doesn't seem equitable to me since we had 50/50 custody.

    Any thoughts would be greatly appreciated

    Rick

  • #2
    Yes - you are entitled to claiming one child "equivalent to spouse". If you have full custody then you should apply. Also see about having your taxes amended for the previous year if you did not claim then.

    If you have 50-50 custody then it can be out in the agreement that both parties alternate who claims. You can not both claim for the same year - check Revenue Canada website for this info.

    I've seen where both have claimed and Revenue Canada revoked it for both and they both had to pay back taxes with interest so be careful.

    If you are looking at this issue also check CCTB and UCCB (depending if your child is 5yrs or younger) since with 50/50 you are entitled to half (6months)and full custody to all.

    Comment


    • #3
      Hi Rick,

      With sole custody, the parent who has sole custody claims the child. You may need to be able to prove you have sole custody, so you must either have a court order or other supporting material (letter from school etc) to supprot that.

      With joint custody 50-50 access, this is referred to as shared eligibility (you can look this up on the CRA site). This means that the CRA splits any child benefits based on income. That said, you and your ex need to agree on who is to claim the child each year. If an agreement can not be reached, neither parent will be entitled to claim.

      Comment


      • #4
        Originally posted by Pharah View Post
        Hi Rick,

        With sole custody, the parent who has sole custody claims the child. You may need to be able to prove you have sole custody, so you must either have a court order or other supporting material (letter from school etc) to supprot that.

        With joint custody 50-50 access, this is referred to as shared eligibility (you can look this up on the CRA site). This means that the CRA splits any child benefits based on income. That said, you and your ex need to agree on who is to claim the child each year. If an agreement can not be reached, neither parent will be entitled to claim.
        There's no issue at all of me being able to prove sole custody. It's firmly estabilished in the court documents and honestly, it doesn't take much effort to show that she never sees them.

        One thing that I'm unclear about though...CRA implies that you're not eligible if you pay child support. I've checked her 2007 and 2008 returns and found that she did claim it, but if this rule is right, does this mean that she wasn't eligible to get it? She did not claim it for 2009 which is correct (which further implies that I can claim it).

        RE: 2007 and 2008, my intent isn't to be a jerk. I'm not going to just put in a claim so that neither of us get it, but by the same token, it doesn't seem right that she got benefit out of this for 2007 and 2008 so I'm in a bit of an ethical quandary lol Maybe I just let her have it for 2007 and 2008 - and let her know that I won't dispute it (to hopefully get some good will) and then I continue to claim it for 2009, 2010 and onwards.

        Comment


        • #5
          Originally posted by rmccallion View Post
          There's no issue at all of me being able to prove sole custody. It's firmly estabilished in the court documents and honestly, it doesn't take much effort to show that she never sees them.

          One thing that I'm unclear about though...CRA implies that you're not eligible if you pay child support. I've checked her 2007 and 2008 returns and found that she did claim it, but if this rule is right, does this mean that she wasn't eligible to get it? She did not claim it for 2009 which is correct (which further implies that I can claim it).

          RE: 2007 and 2008, my intent isn't to be a jerk. I'm not going to just put in a claim so that neither of us get it, but by the same token, it doesn't seem right that she got benefit out of this for 2007 and 2008 so I'm in a bit of an ethical quandary lol Maybe I just let her have it for 2007 and 2008 - and let her know that I won't dispute it (to hopefully get some good will) and then I continue to claim it for 2009, 2010 and onwards.
          In a shared custody situation CRA considers both parents to be paying support and then make an exception to the rule and allow ONE parent to claim; this can be either parent, it is up to them to decide.

          Comment


          • #6
            Originally posted by Mess View Post
            In a shared custody situation CRA considers both parents to be paying support and then make an exception to the rule and allow ONE parent to claim; this can be either parent, it is up to them to decide.
            So does this mean that I would at least have the right to contest the fact that she has arbitrarily made the claim first and let CRA decide who gets the claim? Is it an "either/or"? Or would they do a split? I wonder how they would decide.

            Comment


            • #7
              Originally posted by rmccallion View Post
              So does this mean that I would at least have the right to contest the fact that she has arbitrarily made the claim first and let CRA decide who gets the claim? Is it an "either/or"? Or would they do a split? I wonder how they would decide.
              If both parents claim, neither get the credit. It's up to the two of you to work it out. In terms of your situation, several years ago, you would be out of luck. In the future if you both claimed the same year (in a 50/50) then neither claim would be accepted. They don't decide, you decide, if you can't agree then neither get it.

              Comment


              • #8
                Originally posted by Mess View Post
                If both parents claim, neither get the credit. It's up to the two of you to work it out. In terms of your situation, several years ago, you would be out of luck. In the future if you both claimed the same year (in a 50/50) then neither claim would be accepted. They don't decide, you decide, if you can't agree then neither get it.
                But that doesn't seem right somehow. It means that one parent could put in a claim just be spiteful so that the other person doesn't get it. I can't believe that it would be that arbitrary. Take my current situation...she didn't claim in 2009 so I do (as I have sole custody). She then decides to stick it to me and put in a claim after I do, so I don't get the benefit of it, just based on the fact that she applied for it? There's something not right about that picture. There has to be some reasonability involved. In my example, she shouldn't have been able to claim at all since she didn't have any custody what so ever.

                Comment


                • #9
                  Originally posted by rmccallion View Post
                  But that doesn't seem right somehow. It means that one parent could put in a claim just be spiteful so that the other person doesn't get it. I can't believe that it would be that arbitrary. Take my current situation...she didn't claim in 2009 so I do (as I have sole custody). She then decides to stick it to me and put in a claim after I do, so I don't get the benefit of it, just based on the fact that she applied for it? There's something not right about that picture. There has to be some reasonability involved. In my example, she shouldn't have been able to claim at all since she didn't have any custody what so ever.
                  If you have sole custody she can't put in a claim. If she tries, you can forward the proof of custody to CRA and they will honour your claim.

                  If there is shared custody there is no way that CRA can take responsibility for choosing between two parents who have an equal legal claim. If both claim, they reject both and that's that. Don't complain to me, I don't make the rules, call the CRA help line and ask them who to complain to.

                  Comment


                  • #10
                    Originally posted by Mess View Post
                    If you have sole custody she can't put in a claim. If she tries, you can forward the proof of custody to CRA and they will honour your claim.

                    If there is shared custody there is no way that CRA can take responsibility for choosing between two parents who have an equal legal claim. If both claim, they reject both and that's that. Don't complain to me, I don't make the rules, call the CRA help line and ask them who to complain to.
                    I'm not "complaining" to you - I'm simply trying to understand. I appreciate the help. There's no issue with proving sole custody, I just wanted to make sure that she couldn't sabatoge my claim. Thanks for your help.

                    Comment


                    • #11
                      The CRA is not in the business of acting as arbitor in these cases.

                      If one or both of them can't agree then maybe they shouldn't be in shared parenting. And the CRA is not going to allow them to make it the taxpayers' problem.

                      Comment


                      • #12
                        Not sure how that works with sole custody but with joint they would just take away the credits all together. I would claim for this year and last (amendment) and speak to your ex regarding the previous claims.

                        Comment


                        • #13
                          Originally posted by Pharah View Post
                          Not sure how that works with sole custody but with joint they would just take away the credits all together. I would claim for this year and last (amendment) and speak to your ex regarding the previous claims.
                          Agreed - that seems to be the best route. I shouldn't have any problem claiming for 2009 and 2010 and onwards. Not quite sure what to do about 2007 and 2008 as she's already claimed it but I may just not do anything, no sense at making things any worse than they already are lol

                          Thanks to everyone.

                          Comment


                          • #14
                            Originally posted by dadtotheend View Post
                            The CRA is not in the business of acting as arbitor in these cases.

                            If one or both of them can't agree then maybe they shouldn't be in shared parenting. And the CRA is not going to allow them to make it the taxpayers' problem.
                            Shared parenting? What is this thing you speak of? That question in itself illustrates one of the biggest challenges we have. I do the parenting, but yeah, I hear you.

                            Thanks for the input.

                            Comment

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