50/50 parents claiming equivalent to spouse

[Deputy Daddy]

This was originally posted by Foredeck in another thread, but it was BIG news to me and I thought it deserved it's own thread with more pointed title.

So, for a person like myself with 2 kids, sharing 50/50 that means we can each rightfully claim one child as an eligible dependant? It seems that way...

This is amazing news to me, since I've been unable to claim either if my kids because the CS table offset leaves me paying her a small amount. I'm sure everyone in a shared-parenting condition will be interested to hear this. I know there have been instances where parents worked out "a deal" whereby they each (on paper) have one of their children full-time and pay child support only for the other(s). It's nice to see some encouragement being given to shared parenting.

Am I reading this wrong??

DD

As per Revenue Canada

What are the situations in which you cannot claim the amount for an eligible dependant?

Note
If you and another person were required to make support payments for the child for 2008 and as a result, no one would be entitled to claim the amount for an eligible dependant for the child, you can still claim this amount providing that you and the other person(s) paying support agree that you will be the one to make the claim. If you do not agree on who will claim this amount for the child, no one will be allowed to claim them.

This is their way of saying that if you have shared custody, one of the parents can take the credit, but not both parents. I believe they made the change for 2008 tax year. It's a recent development.

 

[billiechic]

I am in the same situation, but we only have 1 child. Does that mean neither of us can claim equivalent to spouse? If he signs the SA then I get to claim her. As of now I have to pay him for the offset.

 

[Foredeck]

As I stated in the other thread, nobody knows for sure. CRA added it to the Tax Guide, but that have been known to go against the guide in the past for special situations.

www.divorcemate.com/library/SharedParenting.pdf
On page 3 of that document, it is the best I've seen as far as an explanation.

Also, you could try doing an amended 2008 tax return and add the credit. The worse they can do is refuse it.

 

[Deputy Daddy]

For anyone with 50/50 custody and more than one child....

I applied for a reassessment to my 2007 and 2008 tax returns and was granted the equivalent to spouse credit for the child my ex did not claim for those years. This adjustment amounts to about $5k in my favour for those 2 years!

I sent in a tax reassessment request http://www.cra-arc.gc.ca/E/pbg/tf/t1-adj/t1-adj-08e.pdf and enclosed a copy of the CRA page linked earlier. The letter I wrote went something like this: You will see that (ex wife, SIN......) did not claim (child) as equivalent to spouse for this tax year and I would like to do so...

With the trend going towards 50/50 parenting I'm happy to see some movement to make this arrangement more attractive.
DD.

 

[waron2fronts]

My ex and I have a 50/50 custody arrangement and we stipulated in our separation agreement that each of us will be able to claim in alternating years (to make it most fair). He claims in even numbered years and I claim in odd numbered years.

 

[NBDad]

The way CCRA looks at it is that if you cannot agree on who claims the children (and for a shared parenting arrangement (I believe even 60/40 would be sufficient) then neither of you get it.

Both parties have the right to claim the child, but only one of you can. It's simply easier with an even number of children .