What happens if both parents claim a child as a dependent in Canada?

Only one parent can legally claim a child as a dependent per tax year in Canada When both parents attempt to claim the same child as a dependent, the Canada Revenue Agency (CRA) will flag the returns for review and initiate an investigation. The CRA strictly prohibits duplicate dependent claims and will require documentation to determine eligibility. The primary caregiver typically has the right to claim the child as a dependent For shared custody arrangements, parents must agree on who claims the dependent for each tax year Making duplicate claims can result in delayed refunds, penalties, and potential audits The CRA may require proof of custody arrangements and living situations To avoid complications, separated or divorced parents should clearly document dependent claim arrangements in their custody agreement or communicate in writing about tax-related decisions.

"Canada Tax Rule: Only One Parent Can Claim Child Dependent"

Only one parent can legally claim a child as a dependent per tax year in Canada

When both parents attempt to claim the same child as a dependent, the Canada Revenue Agency (CRA) will flag the returns for review and initiate an investigation. The CRA strictly prohibits duplicate dependent claims and will require documentation to determine eligibility.

The primary caregiver typically has the right to claim the child as a dependent
For shared custody arrangements, parents must agree on who claims the dependent for each tax year
Making duplicate claims can result in delayed refunds, penalties, and potential audits
The CRA may require proof of custody arrangements and living situations

To avoid complications, separated or divorced parents should clearly document dependent claim arrangements in their custody agreement or communicate in writing about tax-related decisions.