Have you been separated or divorced with multiple children and aren’t sure how to claim them on your taxes? Watch this video to find out.
As usual, if you prefer reading, the transcription is right under.
tax deadline coming up
Good afternoon, everyone. It’s Irfanali with RMI Professional Corporation once again. I hope
everyone had a fantastic week. We are now into the month of April and so it’s that time of year for Small Business Accountants.
It’s personal tax season. So I know our office is busy plugging away on that as the deadline’s coming up here at the end of this month.
Children in separation or divorce
With that being said I wanted to reach out and touch on another topic. And that is children in separation or divorce and the best tax treatment and how we claim them.
This is a tricky situation but one where there are some tax benefits. And that is if you have multiple kids and you claim one child minimum on each parent there are some added deductions available.
tax deductions for parents
For instance, the eligible deduction that an individual in Canada that works for gets transferred over to the parent in that situation, and that typically results in fewer taxes owed or a bigger refund if you’re an employee and have your deductions withheld throughout the year.
Paying child support?
But one key thing to keep in mind and a lot of people don’t know this is if you are paying child support, you are not allowed to claim that child as a dependent and so what’s really important is when you’re planning out your separation agreements, when you’re putting that structure in place, reach out to your accountant, make sure you’re talking your way through this carefully because you want to be able to absolutely maximize your deductions that you can have in this tough situation.