Say "jim" was together with "sally" for 5 years and they were common law, and sally had a child. Jim took care of the child but was not the biological father and unfortunately they split up. On Jim's taxes, should he declare the child as a dependant? He is not supporting them anymore.
2007-03-08 12:41:10 · 11 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Canada
Even if Jim was the biological father, only one person can claim that child.
If CRA looks into this, which they likely will, they will want verification from Sally that Jim had custody of the child and she isn't claiming her child for that year. The chances of Sally giving that to Jim are slim to none.
Unfortunately, if Jim and Sally can't agree over who claims the child, and CRA finds validity in both claims, neither Jim nor Sally will be eligible for the deduction.
Per CRA:
"If you and another person both can claim this amount for the same dependant (such as shared custody of a child) but cannot agree who will claim it, neither of you is allowed to claim the amount."
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/305/qa7-e.html
2007-03-09 00:19:15 · answer #1 · answered by CanadianBlondie 5 · 2⤊ 1⤋
The only one who would be able to claim the eligible dependant amount is Sally. You can claim the amount only if, at some time in the year, you supported a dependant who lived with you and you did not have a spouse. The dependant also has to be (in this case) your child by birth or adoption.
Since this is Sally's child, I am assuming that the child did not live alone with Jim. When they broke up, the child continued to live with Sally, right? Jim would not be eligible to claim the child.
Click on this link for the rules on if you can claim the eligible dependant amount:
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/305/eligible-e.html
2007-03-09 02:43:00 · answer #2 · answered by LaLa 6 · 1⤊ 0⤋
I would say that the current situation is what is called "Non-Arm's Length" or unrelated in Canada (I'm not sure about in the USA). In other words, no. If you were common law and were taking care of the child, it could be considered "Arms Length" and you could declare the child as a dependant and transfer any of their tuition credits and certain other costs that they are unable to use on their own tax returns (based on their age, whether they are actually going to school, and so on). I believe there is a new child tax refund or credit that was introduced in the last federal budget too.
2007-03-08 12:58:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Jim cannot claim a dependent that he doesn't support. But Sally should claim the child as a married equivalent if she has no spouse.
2007-03-09 07:08:08 · answer #4 · answered by Gone fishin' 7 · 0⤊ 1⤋
Unless "Jim" is the adoptive parent, then he has no entitlement to the child as a dependent.
2007-03-08 12:45:30 · answer #5 · answered by Michelle 4 · 0⤊ 0⤋
No, neither of you could declare the eligible based, as you're married, yet particular, you could declare the hot newborn tax credit of $2,000 for him. you are going to be submitting as married, and not as single. you haven't any longer have been given a decision. This prestige impacts your GSTC and now your CCTB to boot. optimistically they corrected the errors for you, as you have suggested the SINs and earnings on the appropriate line, yet whilst no longer, you would be dealing with a GSTC overpayment in the journey that your earning have been low sufficient to qualify for it. be sure you document for the CCTB, whether you do no longer qualify for it based on your earning, because it is the way you get the UCCB of $one hundred in step with month.
2016-11-23 16:20:45 · answer #6 · answered by niewiadomski 4 · 0⤊ 0⤋
Unless Jim had custody of the child for the year, it would be a good way for Jim to go to jail, or owe the IRS big bucks
2007-03-08 12:49:23 · answer #7 · answered by kelannde 6 · 0⤊ 2⤋
If they aren't your biology children then I don't think your allowed to claim them on your taxes. You may want to check laws concerning taxes. Or even calling like h and r Block to ask them if that is legal?
2007-03-08 13:08:09 · answer #8 · answered by brittv83 2 · 0⤊ 1⤋
Ask an accountant
2007-03-08 12:48:05 · answer #9 · answered by Mike J 5 · 1⤊ 0⤋
only 1 person can claim him. If you ask the caretakers now, and they say it's ok, and they don't claim him, then you can.
2007-03-08 12:46:25 · answer #10 · answered by All Natural Honey 6 · 0⤊ 1⤋