The Child Tax Benefit After Separation
Brad Smith
February 26, 2008
There are often changes that arise as a result of separation that may impact the amount of the Child Tax Benefit received. This includes that a child has started to live with you, a change in the family income or shared custody.
If your spouse previously received the child tax benefit, you may be eligible for the Child Tax Benefit if, after separation, you now have care and control of the child. You should apply for the Child Tax Benefit.
The Child Tax Benefit is based upon the family net income. For example, the family net income of a two income household will be reduced after separation. This will result in an increase of the Child Tax Benefit or receipt of the Child Tax Benefit when none was received previously. The Canada Revenue Agency provides an on-line calculator to estimate your Child Tax Benefit.
You should apply to adjust the Child Tax Benefit as a result of separation. The Canada Revenue Agency will process your application for a change after you have been separated for 90 days. The Child Tax Benefit will be paid retroactive to the date of separation. If you wish to apply to change the Child Tax Benefit because of your separation, you will require a Martial Status Change form.
You should not wait until you file your tax return to identify your change in marital status. The Canada Revenue Agency will not automatically make a retroactive adjustment of your Child Tax Benefit. In addition, the Child Tax Benefit can only be made retroactive for 11 months. Thus you should not wait until you file your income tax return as you may not receive all of the Child Tax Benefit to which you are entitled.
We recommend that you apply as soon as possible after you have been separated for 90 days.
Shared Custody or Shared Care and Control
The Canada Revenue Agency only allows one person to be eligible to receive the Child Tax Benefit in each month. If a child lives more or less equally with two separate individuals (for example, 4 days with one and 3 days with the other or alternating weeks), and each individual is primarily responsible for the child's care when the child resides with that person, the Canada Revenue Agency will allow eligibility for the child to each individual on a 6-month on, 6-month off rotation. Thus you may receive the Child Tax Benefit for 6 months and your former spouse may receive it for 6 months.
The parties cannot agree how to share the Child Tax Benefit. The Canada Revenue Agency is not bound by a court order or Separation Agreement that specifies who is to apply or receive the Child Tax Benefit or how it is to be shared.
Please go to the following for more information:
Child Tax Benefit
http://www.cra-arc.gc.ca/benefits/menu-e.html
Shared Eligibility
http://www.cra-arc.gc.ca/benefits/faq_eligibility-e.html
Child and Family Benefits Online Calculator
http://www.cra-arc.gc.ca/benefits/calculator/menu-e.html
If you have any questions on any other area of Family Law, please do not hesitate to contact Brad Smith at (807) 625-8891 or email him at or contact any member of our Family Law group for general inquiries related to family law.
| Paul Jasiura | (807)625-8881 | |
| Deborah Humphreys | (807)625-8894 | |
| Brad Smith | (807)625-8891 | |
| Fhara Pottinger | (807)625-8877 | |
| Shannon Burkinshaw | (807)625-8862 |
