Even in Divorce, CRA still makes the rules!

Even in Divorce, CRA still makes the rules!

Divorce and Taxes: Alberta Dovorce Finances

When parents separate, tax return preparation becomes much more complicated than it used to be. Our government determines eligibility for claiming certain deductions and credits and for the ability to receive child benefits. When parents separate the application of these rules to a couple’s new situation, is often misunderstood – clients sign agreements that give permission to the other to make certain claims or to access benefits yet these agreements are in contradiction of the tax act and associated rules.

Many clients believe that they have the authority to make these decisions but unfortunately we don’t get to make the rules. Child tax benefits depend on the parenting arrangement and income(s) of the parents. The Amount for an Eligible Dependent credit can be claimed by most parents who are the primary parent or who are in shared arrangements. The rules need explanation and the language in agreements must be correctly worded. It is paramount that every taxpayer going through separation and divorce seeks expertise before signing their legal separation agreement.

We have that expertise! Don’t hesitate to contact us at Alberta Divorce Finances and Calgary’s Choice Tax Services.