What is the eligible dependent credit in shared custody?

The eligible dependent credit must be claimed by one parent per tax year in shared custody arrangements When parents share custody of a child, the eligible dependent credit cannot be split or shared between both parties within the same tax year. The Canada Revenue Agency (CRA) requires that only one parent claim this valuable tax credit annually. Parents must either: Mutually agree on who will claim the credit each year Follow the terms outlined in their existing custody agreement or court order Alternate claiming the credit between tax years It's important to coordinate this decision to avoid duplicate claims, which could trigger a CRA review. The parent not claiming the eligible dependent credit may still be able to claim other child-related benefits and credits for that tax year.

Eligible Dependent Credit in Shared Custody: Who Claims It?

The eligible dependent credit must be claimed by one parent per tax year in shared custody arrangements

When parents share custody of a child, the eligible dependent credit cannot be split or shared between both parties within the same tax year. The Canada Revenue Agency (CRA) requires that only one parent claim this valuable tax credit annually. Parents must either:

Mutually agree on who will claim the credit each year
Follow the terms outlined in their existing custody agreement or court order
Alternate claiming the credit between tax years

It’s important to coordinate this decision to avoid duplicate claims, which could trigger a CRA review. The parent not claiming the eligible dependent credit may still be able to claim other child-related benefits and credits for that tax year.