Single parents who have custody of their children may get some tax benefits from the federal government. But there are times British Columbia parents might have to prove to the Canada Revenue Agency that they’re the custodial parent. When people fill out their tax returns in Canada, the government assumes citizens have declared all their income, but the agency has ways of checking these things. The CRA matches income slips to returns using Social Insurance numbers, making sure citizens have claimed everything. Essentially, claimed expenses, when they come to child custody, must be able to be proved should the government ask for clarification.
Single moms and dads have found that if they claim an eligible dependent (AED) for one child, it may attract the CRA’s attention. The AED can save about $1,700 in taxes, with further savings in each province, so it is a large claim. The CRA is requesting custody proof for many of these claims.
As long as single, custodial parents can provide the right documents to the CRA, the review should go smoothly. Those queried have 30 days to prove custody. Proof may be in the form of a birth certificate and a letter from the school the child attends or from the family doctor. The right paperwork must be presented to prove eligibility for the AED tax credit and without it, the CRA will recalculate tax returns by assuming the claimant doesn’t qualify for the credit.
There are many questions regarding child custody issues that an experienced British Columbia lawyer may be able to answer. A family law lawyer may also be able to point his or her clients in the direction of others knowledgeable in the issues surrounding custody, like those familiar with tax issues such as accountants. The guidance of a lawyer may prove invaluable in these cases.
Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
Source: huffingtonpost.ca, “The CRA Might Ask You to Prove Custody of Your Kids“.