Eligibility changes for the Child Tax Benefit with Shared Parenting in Nova Scotia

/ Highlander Law Group/
Pen, Paper, Calucations

Shared custody arrangements for children are becoming more and more common in Nova Scotia. In family law a 60/40 percent or closer custody split is considered shared parenting. But having a shared parenting custody arrangement no longer means both parties are automatically entitled to the child tax benefit. Lavrinenkov v the Queen, 2019 FCA 51 and Morrissey v. the Queen, 2019 FCA 56 have decided that under the Income Tax Act for both parties to qualify for the Child Tax Benefit in a shared custody arrangement, the parenting time split has to be 45/55 percent or closer. Anything that can’t be rounded up to 50 percent does not meet the definition of “near equal”. Be sure to check your custody arrangement to make sure you fit the definition of “near equal” before applying for the Child Tax Benefit. If you are concerned about how this change will impact your family don’t hesitate to seek legal advice.

You can read more on this change here:

https://www.ctf.ca/ctfweb/EN/Newsletters/Canadian_Tax_Focus/2019/3/190319.aspx

Do you have a shared custody arrangement and plan to apply for the Eligible Dependent Tax Credit? That might be Harder than you think…

If you have any questions about this subject, you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $500+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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