Quick Tax Question

[albertGQ]

My fiancee (girlfriend at the time) had a baby in November 2008. We're both classified as single and do not live together. Her income is about half as mine. Quick question is who gets to claim the newborn? Is it our choice? I'm guessing we both can't claim him. Or does she have to claim him since she is considered the "primary caregiver" and we both live seperately

Thanks in advance!

[Boblobla]

I am not sure if Bring_Back_Shantz will be okay with you asking this question.

[albertGQ]

Originally Posted by Boblobla

I am not sure if Bring_Back_Shantz will be okay with you asking this question.

Why would he not be okay with that?

[Boblobla]

Originally Posted by albertGQ

Why would he not be okay with that?

http://forum.calgarypuck.com/showthread.php?t=72909

I was joking.

[Bring_Back_Shantz]

Originally Posted by Boblobla

I am not sure if Bring_Back_Shantz will be okay with you asking this question.

Nope, this is a prefectly fine question to ask, as he doesn't currently have an expert on his way over to his house to help him out. Seems like CP is a great spot to find the answer to this question.

Now if he had asked,
"Hey guys, I'm not sure about this. Do you think I should bring it up to the guy who is coming over to prepare my taxes for me?" then I might think he needs to give his head a shake.

[albertGQ]

Originally Posted by Boblobla

http://forum.calgarypuck.com/showthread.php?t=72909

I was joking.

Hahahhahahah

Thanks. I got a good laugh out of that. Hahhahah

[cSpooge]

Originally Posted by albertGQ

My fiancee (girlfriend at the time) had a baby in November 2008. We're both classified as single and do not live together. Her income is about half as mine. Quick question is who gets to claim the newborn? Is it our choice? I'm guessing we both can't claim him. Or does she have to claim him since she is considered the "primary caregiver" and we both live seperately

Thanks in advance!

At any point in the year did you provide basic needs for the child? ie did the child live with you (you stated that you and the mother don't live together), if yes then you can claim the child but ONLY ONE of you can claim the child. IT would be best to have a letter signed by both of you stating who will claim the child ust to avoid hassles since both of you might be able to make the claim. Also expect to get hassled about not living together and having a newborn.

[Bobblehead]

From the CRA website:

You may be able to claim this amount if, at any time in the year, you met all of the following conditions at once:

* you did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person;
* you supported a dependant in 2008; and
* you lived with the dependant (in most cases in Canada) in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

[albertGQ]

That makes it tricky. We have seperate residences but she stays over 5 or 6 nights a week and obviously the baby as well.

cSpooge, you said I'd get hassled for not living with the mother and the newborn. Hassled by whom? The government?

[Locke]

Originally Posted by albertGQ

That makes it tricky. We have seperate residences but she stays over 5 or 6 nights a week and obviously the baby as well.

cSpooge, you said I'd get hassled for not living with the mother and the newborn. Hassled by whom? The government?

Tough call man, you're technically common law spouses because you have a kid together.

Common-law partner
A common-law partner applies to a person who is not your spouse (see above), with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:


a) has been living with you in a conjugal relationship for at least 12 continuous months;


b) is the parent of your child by birth or adoption; or


c) has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

http://www.cra-arc.gc.ca/tx/ndvdls/t.../mrtl-eng.html

It doesnt sound like you qualify regarding the 90 separation period either.

[cSpooge]

Originally Posted by Locke

Tough call man, you're technically common law spouses because you have a kid together.



http://www.cra-arc.gc.ca/tx/ndvdls/t.../mrtl-eng.html

It doesnt sound like you qualify regarding the 90 separation period either.

to be common-law you still have to be living together. If she's over 5-6 nights a week you guys are living together.

By Hassled I mean that the government would want proof that you guys are living in separate residences. There is a huge issue in this country with people doing everything in their power not to be classified as common-law because of what it does to their benefits (CCTB/GSTC).

[socktape]

Originally Posted by cSpooge

to be common-law you still have to be living together. If she's over 5-6 nights a week you guys are living together.

If she lived with you in the same residence for over a year but there is a paper trail indicating that she still paid her portion of the living expenses (ie. cheques etc.) the two of you could be classified as single. If you are paying the entire bill then chances are that they (RC) may deem you common law if they audit you.

As soon as you hit the common law/spouce status for most tax breaks it defers to the person that earns the least, unless under special circumstances.... like her being a full time student, unable to physically/mentally care for the child etc.

[cSpooge]

Originally Posted by socktape

If she lived with you in the same residence for over a year but there is a paper trail indicating that she still paid her portion of the living expenses (ie. cheques etc.) the two of you could be classified as single. If you are paying the entire bill then chances are that they (RC) may deem you common law if they audit you.

As soon as you hit the common law/spouce status for most tax breaks it defers to the person that earns the least, unless under special circumstances.... like her being a full time student, unable to physically/mentally care for the child etc.

the 1 year rule does not matter in this situation. They have a child together, so even if they just started living together today they would be common-law.

If you try and skirt this and the CRA goes back and retroactively makes you CL it is a huge hassle and will cost you thousands of dollars in tax bills if you try to skirt the rules for any length of time.

[DESS]

Why aren't you guys living together full time, just out of curiousity? Being a parent of a baby is a tough deal, I'm surprised she wouldn't want your help 100% of the time, not 70% of the time. That's a pretty kick-ass deal for you dude.

[albertGQ]

Man, I'm confused. It looks like I should go to H&R Block.

Or does anyone know of a good cheap accountant?


Dess, we will be living together once we get married in September. And yes, I do realise the kick-ass deal I have right now. This is the summer of Albert!!!

[cSpooge]

Originally Posted by albertGQ

Man, I'm confused. It looks like I should go to H&R Block.

Or does anyone know of a good cheap accountant?


Dess, we will be living together once we get married in September. And yes, I do realise the kick-ass deal I have right now. This is the summer of Albert!!!

DO NOT EVER FING GO TO H&R BLOCK!!!!!!!!!! Get a real accountant to do your taxes if you don't want to do them yourself. H&R Block people have the same knowledge that you do. They get like 10 days of training (At the government for the most basic tax questions you get 6 WEEKS of training), and most of that training is just on using their tax software.

[Bobblehead]

Originally Posted by cSpooge

DO NOT EVER FING GO TO H&R BLOCK!!!!!!!!!! Get a real accountant to do your taxes if you don't want to do them yourself. H&R Block people have the same knowledge that you do. They get like 10 days of training (At the government for the most basic tax questions you get 6 WEEKS of training), and most of that training is just on using their tax software.

I agree. Seeing some of their product is scary.

I have no idea how they make the guarantees they do, unless there is some crazy small print in their contracts.

The fact is you don't fit exactly into any of the rules (and after you work in taxes for a while, you will find out many, many people have a situation where they don't fit the rules perfectly).

The best thing to do is to call the CRA and ask them. They don't bite. Tell them the exact situation and find out how they recommend you file. At this time of year they probably have temp staff answering the phones, but if they can't handle the question they will escalate it to more experienced people.

[MoneyGuy]

I see the original question has been answered. Side issue here: If you're living commonlaw you are obliged to report it on your tax return. This applies also to same-sex CL relationships. I don't know what penalties might apply if you don't properly report this.

[cSpooge]

Originally Posted by MoneyGuy

I see the original question has been answered. Side issue here: If you're living commonlaw you are obliged to report it on your tax return. This applies also to same-sex CL relationships. I don't know what penalties might apply if you don't properly report this.

filing your marital status incorrectly causes your non refundable tax credits to be calculated wrong usually resulting in one or both the parties in the relationship getting an unwarranted refund, thus getting charged the back tax bill + interest. As well if there is a child involved your CCTB/GSTC will be calculated wrong and there will be a bill caused for this in most cases as well.

[albertGQ]

Wow. Didn't realise how wrong we both were in filing our taxes. To make things worse she gets income from employment and as a private contractor. Looks like we need an accountant

Anyone know of a good cheap one?