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Who Claims Child on Taxes with Joint Custody Canada

Who Claims Child on Taxes with Joint Custody Canada

After the separation of a couple, child custody becomes a very important issue. As long as joint child custody is concerned, you also may need to deal with the income Tax Issues.

In most cases, those issues may seem very complex and confusing to you. That is why it is better to know about income tax issues while dealing with joint child custody in Canada.

In this article, we will discuss methods and procedures for who claims child on taxes with joint custody Canada. Keep reading to learn more.

What Factors Should be Considered While Claiming Tax Credit in Joint Child Custody?

While dealing with the divorce process, it is important to know how to negotiate with the child custody claim after divorce. Because child custody claim includes a lot of issues, including income tax issue. Usually, the tax credits are claimed by either parents or the primary caregiver.

So, there are some factors that you should consider while claiming the tax credits and benefits in joint child custody. Some of those factors are given in the following:

1. Legal Court Fees:

Usually, you may need to pay some legal fees to the court while dealing with the custody process. You can also claim for the court fees that you have paid in order to get the following:

  • The primary custody of your children
  • Child support payments
  • Any late child support payment

You might also need a lawyer’s help in child custody cases and you also need to pay for that.

2. The amount for the Eligible Dependent:

When one of the spouses has the primary custody of their child, s/he may be able to claim for the amount for the eligible dependent. When a couple has joint child custody, technically, they both have the right to claim that amount for their child. But only one spouse can claim for it at once.

That is why both parents need to decide which party will claim for the eligible dependent. But if both parties fail to decide it, then it will be disallowed by the Canada Revenue Agency (CRA).

In some cases, when you will have the primary custody of more than one child, you only may be able to claim the eligible dependent for one child at a time. This also happens in the joint custody case too.

3. Childcare Expenses:

Childcare is another big issue that arises after the separation of a couple. Generally, childcare support includes school fees, health care, private coaching fees, sports, co-curricular activities, and so on when the parent with lower income can claim for the childcare expenses.

But there are some exceptions too. If the primary custody parent is living with the child, in that case, that parent can claim for the childcare expenses regardless of their income. In the joint custody case, both parents have the right to claim this amount.

4. The amount for Child’s Fitness and Arts:

Usually, this amount can be claimed by either parent. But the claim should not exceed the maximum amount of it. The maximum amount for the child’s fitness is $500, and the maximum amount for the child’s arts is $250 in Canada.

In these recent years, this maximum amount has been eliminated from the tax credits compared to the previous years.

5. Child Care Benefits:

Child care benefits are one of the most common issues after the divorce. Child care benefits or child tax benefits are usually paid by the primary custody parent or who possesses the legal guardianship of a child. But when it is joint child custody, the Canada Revenue Agency or CRA will do a review and will decide which parent would receive the child benefits.

Sometimes, both parents are equally qualified for receiving the child care benefits. In such a case, both parents may be able to receive half of the amount of the total benefits.

Bottom Line:

In the majority of cases, the child care benefits or child tax benefits are determined by the marital status or the parent’s income. So, as long as a couple has a divorce, it is important to let the CRA know about the current marital status. As a result, you will get more time to decide what you should do.

Additionally, the Canada Revenue Agency (CRA) also can review your case and can calculate the amount of the benefits more accurately. Hopefully, this writing helped you to get the answer to your question, “Who Claims Child on Taxes with Joint Custody in Canada.”