Child Tax Credit and Spousal Credit in shared custody

[dadtotheend]

I find it a bit peculiar, they should either grandfather it, allow it to be the parent's choice, or enforce it with penalties. They have done none of this, it's the most passive rule I've ever come across from the CRA.

The six month rotation rule was enacted in April 2007 to recognize the continuing emergence of joint custody and shared parenting. At the time there were probably many thousands and thousands of such cases where shared parenting existed but that one parent (usually the mother) was collecting the CTB exclusively under the old rules. The CRA could (and probably should) have chosen to educate the citizenship about this change, but they didn't make a big fanfare about it.

IMO, the reason that they won't, as an administrative practice, retraoactively apply the rules and/or penalize for non compliance was that they (politically) did not want to be seen to be punishing the parent (and by extension the children) for a change in the rules that they may have not been aware of by having to bill them for benefits that they shouldn't have been collecting under the new rules.

I speculate that they relied on the parents to identify that the new rules applied to their family now and that they would come forward and disclose their situation. Indeed the Income Tax Act does require that any change in the living arrangements shall be communicated to the CRA. Again, if the parents failed to advise the CRA that the new rules applied to them, the CRA was probably not of the mindset to punish the parents (and by extension the children) for the oversight in the immediate aftermath of the new rules coming into play.

IMO this policy is proably the best that can be expected in the circumstances, and as the new rules have begun to be more widely known only a couple of years after their inception, the incidence of situations where one parent is incorrectly collecting all the CTB in shared parenting arrangements will decline more and more. It will generally only be the transition period of a few years that this will be problematic.

So there you go!!

[Lanfear]

I was just talking with a nice lady at the CRA concerning who can claim child on taxes as dependant or equivelent to spouse.

The rule is that only one of the parents can make a claim for the child on their taxes in a given tax year.

If both claim, both are denied the claim.

The common arrangement is to alternate years, or the one with the higher income uses the claim and splits it with their former spouse (not likely going to happen)

My spouse refuses to cooperate and therefore we will both be claiming and will therefore both be denied the claim. (That's life)

Hope this clears up some points of confusion.

Duped

Hey, thanks so much! I needed to hear that bit of info. I am no longer afraid of her (my bfs ex) claiming the kids. We will be doing the same then. I would rather us both be denied, than her approved.

She can put that in her pipe and smoke it.

[dadtotheend]

Hey, thanks so much! I needed to hear that bit of info. I am no longer afraid of her (my bfs ex) claiming the kids. We will be doing the same then. I would rather us both be denied, than her approved.

She can put that in her pipe and smoke it.

An investigation will happen and the independant third party evidence will reveal the living arrangements for the kids. After that is concluded, you go back and get the eligible dependant (formerly "equivalent to spouse") (re)instated.

[DadFirst]

Hi everyone. I have a question and I'd appreciate some opinions on the topic.

I have been separated for over 2 years. The two children live with my ex, but since she started work I have them about 40% of the time (maybe a little more). The actual number of days is a 50/50 split, but they sleep at my ex's on some of the days I have them.

Child support has always been based on the chart (which would be what I'd pay if I didn't have *any* access to my kids). Lately I've been considering whether this is fair or not. Seems to me that this is shared parenting, and that there should be at least *some* equalization of child support here.

Does anyone know how big a deal it is to apply for shared parenting, and get this changed? Anyone with experience out there doing this? If so, how did it end? Does the whole separation agreement get brought back out and is everything on the table again?

Thx
DadFirst

[billiechic]

Dadfirst.. please start a new thread. You are going to need to see the responses for your situation separate from this thread.

If you have your child more than 40% of the time, you should only be paying the offset amount (the difference between what you would pay her, and what she would pay you). If you are paying the full amount then you need to change that. If this is the schedule you have been exercising for 2 years, you have a solid status quo and it is likely the court would change your CS obligation (as you incurr an equal amount of the child's expenses).

Have you spoken to a lawyer? Do you have a separation agreement?

[DadFirst]

Dadfirst.. please start a new thread. You are going to need to see the responses for your situation separate from this thread.

If you have your child more than 40% of the time, you should only be paying the offset amount (the difference between what you would pay her, and what she would pay you). If you are paying the full amount then you need to change that. If this is the schedule you have been exercising for 2 years, you have a solid status quo and it is likely the court would change your CS obligation (as you incurr an equal amount of the child's expenses).

Have you spoken to a lawyer? Do you have a separation agreement?

Thanks Billiechic. New thread created "Child support and shared parenting"

[goodcarol2003]

My daughter and her ex, have shared custody, 40/50 neither one pays child support but share in the cost of clothes, activities etc. and their daughter lives one week about. They went to mediation, works great. My daughters new man has 2 girls 6 and 8, and he does the same, does not pay child support....It works...

[goodcarol2003]

I forgot each parents splits child tax credit etc. 6 months each.

[decent fellow]

Eligible Dependent Tax Credit

With respect to this rather large tax credit for children, can somebody please summarize with some authority how this would work in a Shared Custody situation.

I have my daughter 44% of the time, and currently am stuck paying one-way child support at the moment (without offset)... although I am in the midst of court process to get the straight offset (where I would still be a "net" payor).

Technically, in Shared Custody, we are both paying CS, correct? Might that possibly disqualify both of us from claiming this credit if one of us approached CRA to discuss the custody arrangements.

Obviously, as you might ascertain, I am putting this (along with all the other children tax credits/benefits) on the bargaining table... i.e. "you can keep 100% of all these tax credits/benefits forever if you agree to straight offset" kinda thing.

I'm not trying to be cruel, but just looking for a fair & convenient solution. Many thanks in advance for your comments.

[billiechic]

what you offer is not cruel at all! In shared parenting arrangements it is the norm for parents to alternate using the eligible dependant tax credit every other year. To offer her to claim it every year is a big concession on your part, and may not be necessary.

According to the guidelines, you should be paying offset, so any bargaining incentive you give her is generous of you!

[decent fellow]

Thanks Billiechic... I thought it was generous too! However, my EX doesn't seem to think so :<(

So, the big eligible dependent credit can be alternated by me even if I have only 44% ? What are the provisos... do I need an "offset" regime to be able to effectively use it as a bargaining chip?

Thanks again for your support... Case Conference is on Monday... and her lawyer has requested a meeting at the court house 1 hour prior to the conference... not sure what's up with that, or if there is some game being played here (I'm self-representing)...

[billiechic]

I don't thinks so. As long as you both agree (in writing) who will claim it in each year, then you can claim it even if you pay full CS.

In some cases when one parent has remarried then they allow the other (single) parent to claim it every year. They often agree to split the amount of the return that results.

[billiechic]

if her lawyer is asking for you they are probably hoping to negotiate. Be prepared knowing what you will accept, what you will not budge on. KNow the implications of any temporary orders you agree to.

[blinkandimgone]

I don't know that you can offer to give up half the CCTB (pretty sure I read that here recently) because there is nothing to stop you from offering it, her accepting, settling and then you applying for it anyways. There is no benefit to her agreeing to that.

[dhutch]

I was told that the person receiving the ctc from July to Dec would be the one that claims as a dependant. The people at ctc told me that about 4 years ago so it may have changed.