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CRA not honouring "dependent" credit...

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  • #16
    PS: You mention the agreement is not supportable in "law". It was accepted by the courts. Are you referencing tax law in terms of the CCTB?

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    • #17
      Originally posted by brettingsworth View Post
      I have a legal separation agreement. How does one update it yearly?! I submitted it to the CRA already. My agreement says I'm not touching the CCTB until she reaches a certain amount but I guess that's simply not possible with the CRA.
      The separation agreement may be filed with the courts at no cost to you, if you take the time to do it personally and get assistance from the court clerk and duty counsel. This is advantagous if you are dealing with the CRA, the school board, etc. and they are asking for something with the weight of a court order to prove custody.

      You may file an amending agreement yearly, or less often if you wish. I would think that as your incomes change and the children grow older and their needs change, certain things will need to be updated. Also, for example, in my situation the children's schedule tends to evolve year-to-year as we adapt to things like their sports practices, night classes my ex or I want to take, etc. We therefore update the children's schedule every couple of years in our amending agreement so that there are no complications. There are occasional instances where I have to produce an official order showing my custody level and schedule. Maybe this will never come up for you; if your ex is in school and receiving OSAP, this liklely will be an issue at some point.

      All of this can be done yourself. If you need assistance with wording an amending agreement, we can help you here.

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      • #18
        Thanks Mess. Do you just add amendments to the existing document? (seperate papers)?

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        • #19
          Originally posted by brettingsworth View Post
          PS: You mention the agreement is not supportable in "law". It was accepted by the courts. Are you referencing tax law in terms of the CCTB?
          Yes, the section requiring the CCTB to go to one parent cannot be supported in law.

          Yes, I know that family court judges will accept this. No, you cannot be penalized in any way by the family court because you adhered to tax law.

          There are many things that can be put into an agreement that are not enforceable.

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          • #20
            Originally posted by NBDad View Post
            Re: CCTB

            Your court order in that regard is both unenforceable, and technically constitutes fraud.

            If there is a shared custody arrangement, you MUST inform CRA, and they will make any changes that are necessary under the Income Tax Act.

            If you are under a shared arrangement, then by law, the CCTB MUST be split accordingly. By not reporting it, you are allowing her to collect monies she is not entitled to.

            In regards to the credit split, your order must be wording very explicitly to account for the offset payment.
            This is true, for the benefits of CCTB
            Universal and the equivalent to spouse is different and is not split.
            Typlically if you have one child then the parents should alternate each year who claims the child.

            In the case such as yours, you should each be claiming one child for everything.
            parent A claims child 1 for CCTB, UCTC and equivalent to spouse.
            Parent B claims child 2 for CCTB, UCTC and equivalent to spouse.

            This gives the family unit much more money back each year than if you were together which is why CRA doesn't like it.

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            • #21
              Sorry everyone I have not read everyone reply so sorry if I post the same information as someone before.
              I went through this last year and it took 9+ months to sort it out.
              The outcome
              I claim one child every year, my ex claims the other child. every year we alternate which child we claim.

              Point is if you have two children, both of you could and should be claiming one child each. As this gives the huge tax advantage when claiming a child equivalent to spouse.

              In the end I gave up, took it to my MP's office and a staff member escalated very high up the chain, and it was resolved.

              Search Revenue canada
              p102-12e.pdf
              t4114-12e.pdf
              it495r3-e.pdf

              and finally
              http://www.divorcemate.com/library/SharedParenting.pdf

              My order was as follows:
              Child Support and Special Expenses:
              [54] Child support shall be paid based upon the provisions of section 9 of the Child Support Guidelines for Ontario concerning shared custody. It is acknowledged that the applicant’s disclosed 2011 income is $_______. The mother’s disclosed 2011 income is $_____. Father shall therefore pay $390 per month child support for the two children.

              [58] The parties shall cooperate in relation to the filing of income tax returns such that each shall benefit by claiming one child as dependent upon them given the sharing of time and in relation to daycare costs and expense. Should some other method of filing be deemed more feasible and of mutual financial advantage, the parties may file accordingly.

              My ex never cooperated and filed for both children, in the end she was audited, her bank accounts were seized and she was forced to pay it back.

              This year 2012 they accepted my tax return without a problem, accept they won't allow my legal fees. So once I'm done that, I'll post a tip thread on that issue. Unless someone has info they want to share, but that is a different thread.

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              • #22
                ^^^^ Is why InformedDad75 is a much welcomed member of this forum and greatly appreciated.

                Good Luck!
                Tayken

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                • #23
                  Even though we each claim one child, they still split the CCTB
                  If you read the pdf's I posted it should explain everything.

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                  • #24
                    Hey everyone, I've been out of the loop for the last few days. Thank you everyone and especially involveddad75. Such great help. End of the day, it's now out of my hands, I have to file and objection (which I'm told will likely be successful) and will have to split the CCTB/Universal. Much appreciated everyone so very much!

                    Comment


                    • #25
                      Originally posted by vocalfather View Post
                      Hey everyone, I've been out of the loop for the last few days. Thank you everyone and especially involveddad75. Such great help. End of the day, it's now out of my hands, I have to file and objection (which I'm told will likely be successful) and will have to split the CCTB/Universal. Much appreciated everyone so very much!
                      You are quite welcome. And if you need anything else, let me know.

                      Comment

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