Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

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

Reply
 
Thread Tools
  #1  
Old 02-19-2018, 11:29 PM
happy to be out happy to be out is offline
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 12
happy to be out is on a distinguished road
Default cra and my accountant don't know this

ex and I have been separated 5 years, we had a sep agreement. In the agreement it say I get one as a dependant my ex gets the other child as a dependant. They use to live one week with me one with ex. Now the one I had claimed as a dependant lives with ex full time and the other lives with me one week on and one off. I pay child support for the one living with my ex.

My ex makes much more that I do, and my question is can I still claim one of the kids as a dependant as I have one still living part time with me, and I pay support for the other, who still comes over and sleeps over sometimes.
Reply With Quote
  #2  
Old 02-20-2018, 10:35 AM
zanman zanman is offline
Senior Member
 
Join Date: Jun 2016
Posts: 181
zanman is on a distinguished road
Default

From my experience you will not be able to claim as a dependant. I just had to pay back the government as I was not allowed to claim one even though we have the children 50% of the time. The government indicated as long as I'm the Payor with the offset child support I can't claim one as a dependant.


I still don't understand this at all
Reply With Quote
  #3  
Old 02-20-2018, 10:42 AM
Janus's Avatar
Janus Janus is offline
Senior Member
 
Join Date: Jul 2012
Posts: 1,521
Janus will become famous soon enough
Default

Your separation agreement is not binding on the CRA. In this case, that's a good thing. Claim the kid who you share as a dependent. It doesn't really matter who is supposed to claim that particular kid in your agreement.


Quote:
Originally Posted by happy to be out View Post
I pay support for the other, who still comes over and sleeps over sometimes.

Random point: The fact that the kid comes to sleep over sometimes is irrelevant. You have him less than 40% of the time, which means as far as anybody is concerned you spend a grand total of zero dollars on him directly.


Quote:
My ex makes much more that I do
Question: How are you guys calculating the child support that you owe? If you guys share one kid, and she has the other full time, she might still owe you CS if her income is truly that much higher.
Reply With Quote
  #4  
Old 02-20-2018, 10:43 AM
Janus's Avatar
Janus Janus is offline
Senior Member
 
Join Date: Jul 2012
Posts: 1,521
Janus will become famous soon enough
Default

zanman brings up a good point. I'm assuming that your agreement is structured in the classic:


Mom pays Dad $X
Dad pays Mom $Y


For convenience sake only, Dad pays $X-Y




...so, again, how are you guys calculating support?
Reply With Quote
  #5  
Old 02-20-2018, 01:28 PM
blinkandimgone's Avatar
blinkandimgone blinkandimgone is offline
Moderator
 
Join Date: Feb 2010
Location: Lucknow
Posts: 5,312
blinkandimgone is a jewel in the roughblinkandimgone is a jewel in the roughblinkandimgone is a jewel in the rough
Default

Quote:
Originally Posted by Janus View Post
zanman brings up a good point. I'm assuming that your agreement is structured in the classic:


Mom pays Dad $X
Dad pays Mom $Y


For convenience sake only, Dad pays $X-Y




...so, again, how are you guys calculating support?
CRA went and changed the acceptable wording of this, and now demand that in an offset arrangement the money has to actually flow both ways.
Reply With Quote
  #6  
Old 02-20-2018, 03:03 PM
zanman zanman is offline
Senior Member
 
Join Date: Jun 2016
Posts: 181
zanman is on a distinguished road
Default

Yes I just to fight this with the CRA and they said so sorry that is the way it is as long as I pay Child support I can't claim nor get the tax benefit of one of my children. even though I have 50/50 custody of my 2 girls.


I still don't understand it but they kept telling me that is the way it is.
Reply With Quote
  #7  
Old 02-20-2018, 03:07 PM
zanman zanman is offline
Senior Member
 
Join Date: Jun 2016
Posts: 181
zanman is on a distinguished road
Default

The way it was worded from them in a letter was this...


You are not able to claim an amount on lines 305 and / or 367 for a child if you have made or were required to make support payments for that child at any time of the year , whether the support payments are deductible or non
Reply With Quote
  #8  
Old 02-20-2018, 04:08 PM
blinkandimgone's Avatar
blinkandimgone blinkandimgone is offline
Moderator
 
Join Date: Feb 2010
Location: Lucknow
Posts: 5,312
blinkandimgone is a jewel in the roughblinkandimgone is a jewel in the roughblinkandimgone is a jewel in the rough
Default

There is a subclause for offset. I will find it later for you.
Reply With Quote
  #9  
Old 02-20-2018, 04:18 PM
blinkandimgone's Avatar
blinkandimgone blinkandimgone is offline
Moderator
 
Join Date: Feb 2010
Location: Lucknow
Posts: 5,312
blinkandimgone is a jewel in the roughblinkandimgone is a jewel in the roughblinkandimgone is a jewel in the rough
Default

https://www.canada.ca/en/revenue-age...dependant.html

Shared custody
If you and another person had to make support payments for a child, normally, no one would be able to claim the amount for an eligible dependant (line 305). However, you can still claim it, as long as you and the other person agree that you will make the claim. If you cannot agree, none of you can claim it.
A court order or written agreement that calculates child support obligations based on a statutory scheme (such as The Federal Child Support Guidelines) does not legally obligate both parents to pay child support. Under these types of agreement, only the payer is considered to have made support payments since there is no legal obligation for the recipient to pay an amount. In this case, the payer cannot claim the amount for an eligible dependant.
For more information about your eligibility to claim the amount for an eligible dependant, see line 305.
Example (show/hide)
William and Julie share custody of their children, Emily and Eric. Emily and Eric spend 50% of their time with William and 50% of their time with Julie. Based on Williamís and Julieís incomes, the court order states that William has to pay Julie $250 a month.
Even though Julieís income was considered when determining the amount each parent had to contribute for the children, only the amount William pays is considered a support payment because he has a legal obligation to pay the amount to Julie. Therefore, William cannot claim an amount for an eligible dependant for either Emily or Eric. However, Julie can claim an amount for an eligible dependant on line 305 of Schedule 1 for either Emily or Eric.


Here is instructions on how to deal with it:

https://www.corkumfinancial.ca/share...unt-july-2017/

Essentially, now the only way around it is if your agreement specifically states that each parent pays the other, AND they actually make the payments to each other - so the cash flows both ways. Before, they would accept the "as a matter of convenience Parent A pays parent B the difference of $XX" but it seems that is no longer acceptable. The money needs to actually change hands from each parent to the other.
Reply With Quote
  #10  
Old 02-21-2018, 02:11 AM
happy to be out happy to be out is offline
Junior Member
 
Join Date: Aug 2013
Location: gta
Posts: 12
happy to be out is on a distinguished road
Default

The way it was originally done . Was offset were we both had to pay for two kids . I actually received a cheque . Now the way it is is I pay for two kids I. The federal guidelines and she pays for one . I actually get $50 a month but after this NOA I will be paying a little bit each month .

I just donít like dealing with CRA on the phone as I donít know if they are correct . He told me I could write off the child support payments on line 220. I was under the impression that only spousal support could be written off
Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -4. The time now is 04:41 AM.