Eligible dependent, how much is it worth?

F

failed@life

Member
I'm in a shared custody situation. I would like to change the wording in my separation agreement re: child support so that I can claim the amount for eligible dependent. Right now it just says I have to pay x based on offset, from what I understand I need it to say I pay her x, she pays me x, therefore offset is x.

I'm sure this will cause some problems, don't really care though if she wants tax credits she should be paying her taxes then, which she doesn't.

I suck at tax calculations/credits/deductions it's just something I can't seem to grasp. Is there a way to figure out approx. what it means in dollars based on some gross numbers? Want to use this as a bargaining chip as gauge what's worth fighting for.

- 95000 - my gross
- 14000 - her declared gross
- 36000 - her actual gross minimum
 
Like are we talking in the thousands? If so then worth the hassle. I'll offer to pay the cost for the change, still she might not agree I know. If that's the way she wants to play it fine, but she'll end up with some major back taxes and fines once CRA finds out she's been cheating on her income...
 
For me it's thousands... Around $2400. But you're also forgetting the uccb and cctb which you are also eligible for albiet only half your entitlement... That can also be a good chunk. I was able to get back all the money that was owed to me but only because we were in court and didn't have an agreement. You most likely won't be able to go back in time but it is possible..

File a formal appeal and prove it's set off no matter what your agreement states and you will probably be successful.. It won't be easy though especially if she disagrees


Sent from my iPhone using Tapatalk
 
Yes, I believe it would be in the thousands. I don't have your income, and filing as a single parent with an income-less child as my eligible dependent instead of my low-income ex as my eligible dependent still made a difference of about $3000. (I should really have less tax deducted at source now, but I like getting it back all at once.)

It's an $11000 deduction from your income, which is a good amount of taxes saved at your $95k tax bracket.

If your ex doesn't even file her taxes and claim a child, you might not have trouble with CRA or need to worry about your offset wording. I think it's only when two people try to claim the same child that they get picky. My ex doesn't make the claim and CRA has never asked to see my separation agreement. Or maybe CRA is making a sexist assumption that because I'm female, of course I have the children all the time, and they might want you to prove you have 50-50 since you're male.
 
Sep. agreement states I have our only child no less than 60/40 (it's actually 50/50 now) so shouldn't be a problem. Ex does file taxes and gets child tax credits, but doesn't declare the bulk of her income. I guess it'll be up to her, either she agrees I get the break, or she'll get it but get nailed on taxes...
 
Her income declaration is 100% irrelevant to your claim.

How many kids you have is



Sent from my iPhone using Tapatalk
 
Eligible dependent, how much is it worth?

Since you have only one child you will have to agree to claim it in alternating years... She gets even you get odd for example

This is because the child can only be claimed once per tax year.

Sent from my iPhone using Tapatalk
 
Yes I understand. However I don't like the alternating, unless she declares her actual income. If she declares @ 14k, she'll get what a couple hundred out of it? While I'm missing out on a couple grand. It's not right. People who don't pay their taxes shouldn't get tax credits.

If she's declaring her actual income, then fine alternating is ok.
Basically what I'm saying is either she helps make my life a little easier, or I will help make hers a little harder. Sorry if this sounds vindictive, but like everyone here I've been through a lot of bs, and to me this just seems right.
 
Eligible dependent, how much is it worth?

Here income for this purpose is irrelevant... Fairness would be alternating and that's what a court would order

Her declared income obviously affects your offset cs so if that's a battle you want to have go ahead. That's probably worth a fight but in regards to the dependent credit it's irrelevant.

Although you could offer her some cash in lieu of her claiming it one year. If she gets $500 and you'd get $2000 you're better off paying her $700 and still get $1300 for yourself. Both of you would be ahead... Just depends on how reasonable you both can be.


Sent from my iPhone using Tapatalk
 
You've got two different issues:

1) You believe she's underreporting her income, which affects offset CS.

2) You want to claim the AED.

You need to deal with these issues separately. With the AED, as others have said, the fair way is to alternate claiming it. Your ex probably won't accept anything less, and neither will a judge. You can't and shouldn't use the AED to rebalance what you perceive as an overpayment of CS on your part.

Remember that the AED is only applicable if the claimant is single, so if either of you remarries or enters a common-law relationship (as recognized by CRA), you won't be able to claim the AED, and the other parent will claim it every year (as long as the other parent also remains single). So depending on your life situations, the AED may not be relevant for very long.
 
You must log in or register to reply here.
Back
Top