Situation 1
Mr. A and Ms. B, who live in separate, self-contained domestic establishments due to the breakdown of their marriage, have shared custody of their three children for one week each, and with Mr. A required to pay support for his children. Can he claim the s. 118(1)(b) credit? CRA responded:
Mr. A was required to pay child support for his three children. As a result, he would not be able to claim the wholly dependent person credit provided for in paragraph 118(1)(b) for the taxation years in which he was required to pay child support for his three children by virtue of subsection 118(5).
Situation 3
Mr. C obtained custody of his child in February 2010 and was no longer required to pay support for that child from that point on. Mr. C paid child support for that child in 2010 only for the month of January. CRA stated:
Mr. C could not claim the wholly dependent person credit for the 2010 taxation year since Mr. C. was required to pay support for his child for the month of January 2010.