My ex wife claimed the CDTC as if the children lived with her. But they have been with me for 11 months in 2022. I reported her for fraud because I am a government employee. The CRA sent me a letter stating if we don’t sign something agreeing on when we had the children they will revoke it from both of us. The amount is $8000. So if my wife doesn’t sign something for me, which she already said she wouldn’t. I now owe $8000? How is this a fair system. My ex spouse is a monster and is doing this out of spite.
It sounds like you need a lawyer, not an accountant. CRA does not get in the middle of matrimonial matters and for good reason but what they told you is standard policy. You and your ex must get a signed agreement about who is claiming what tax credits.
The disability credit is not worth $8,000. It is worth around $1600 per year, depending on the province you’re in.
If you are able to get a third party statement from a doctor or your child’s school administrator, detailing that your dependant is living with you, you may use that. The reason why I’m saying “may” is because I’ve had instances where the doctor or the school admin aren’t willing to provide any signed letter due to the legal matters that may potentially arise. It’s a 50/50 chance, but if they provide the written statement, great.
However @kevin is right here, the CRA does not get involved with the marital disputes. It would be advisable that you get a lawyer involved. Unfortunately you won’t be able to claim legal fees on your tax return as this does not involve spousal support.
I am sad for your situation. I have dealt successfully in similar circumstances. This is what worked.
- THIRD PARTY REFERENCES
In past years the CRA benefits line had a list of authorized third party references. At that time only the Child Tax Benefit had that list. From my recall it included doctor, clergy, school official, etc.
They need to state the following:
a. How long they know you and your children.
b. What they know the children living with you in your primary care.
c. How long have they known about this situation, that the children are in your primary care.
d. To which periods of time this applies.
e. If available, list supporting data such as dates seen, dates school attended, dates of teacher’s/ medical visits, primary address for children, etc.
f. Ensure that the Child Disability Tax Credit is in your name and not in your wife’s name. Each year verify that it is still valid and in your name.
g. Create a cover letter summarizing a-to-e. The first bundle can apply to multiple years. New packages have to be created for each and every subsequent year for as many years as your ex-wife is unwilling to sign a joint letter attesting to the number of days per year that children were in each parent’s custody.
This package has to go to each CRA assessing area, ie
CRA T1 correspondence if claiming eligible dependent and/or Child Disability Tax Credit
CRA Benefits for Child Tax Credits and Disability Benefits.
-
CALENDAR LOG
a. Create and sign a calendar log stating the dates the children were living at your house. Highlight or better yet log after school and weekend activities you took them to, paid for, arranged, etc.
b. Identify from and to dates the children lived or visited with their mother.
c. List from your bank and credit card statements items paid by you for the children.
d. Organize and summarize this for each and every calendar year.
e. Create a cover letter summarizing a-to-d.
f. Include with bundle above. -
Attach a copy or copies of your Separation, Divorce, and Child/Spousal support agreements, all that apply.
Create a cover letter summarizing the date your wife moved out, a history of each of your addresses since separation, three documents for each year as proof of your address, any documents indicating proof of address and/or custody of the children such is provincial health care, health insurance, etc. This has the be done each year. -
Create a separate bundle proving your communications with your wife and her repeated attempts for a simple and accurate resolution. Identify your wife clearly with name, addresses, SIN, Date of Birth, and a history of dates from separation to now.
a. Send three written attempts to obtain a signature on a simple written agreement from your wife. Number each request. You can draft this. All it needs to state which days each child stayed with you and which days each child stayed with your wife. Ask respectfully that she sign this. Three attempts with proof of delivery such are signed courier, legal courier, or registered mail are best. Document proof of delivery.
b. Create a summary document of each activity in item 4a. Include with bundles 1, 2, 3.
Make it easy to track with numbered documents and tables of contents for each bundle. -
Create a high level or executive summary listing the overall history of events and a high level summary of the contents of bundles 1, 2, 3, and 4.
Send a separate bundle to each CRA department that may be involved.
a. CRA T1 correspondence.
b. CRA T1 Adj
c. CRA Benefits, child tax credit processing
d. CRA Child Disability Tax Credit processing
e. CRA fraud
Best wishes and good luck. In the past it have seen this take anywhere from two to 8 months to fully resolve. Multiple filing is the key. Each and every processing unit has to be on the same page. Eventually it gets escalated to someone in authority to who makes the final decision. Be respectfully. Defer to the CRA process. Ask for help or clarification in the event that you are not complying with the current CRA process. The person with the best documentary evidence wins.
I am sad to say that you will absolutely need to document this each and every year for both Federal and Provincial benefits. With respect to CRA I would send copies to the following:
a. CRA T1 correspondence.
b. CRA T1 Adj
c. CRA Benefits, child tax credit processing
d. CRA Child Disability Tax Credit processing
I have personally helped a few Dad’s who went through this each and every year until the youngest child turned 17. After the third year of this circus we took the bull by the horns and pre-emptively sent the bundles upon filing with an additional cover letter stating that in the prior three years these were audited or disallowed and to mitigate financial hardship we were sending the documentary support in advance.
I have been preparing and supporting personal tax since 2000 and in very high volume offices during during the first eight years. The details change during the years. The general strategy remains the same.
Good luck.
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