A couple with two children separated on February 1, 2008. Before the separation, Madame’s income was $2,000. Commencing November 1, 2008, Monsieur paid $500 per child per month in support. The couple has shared custody of the children since the date of separation. Can Monsieur claim the wholly dependent person credit for one of the two children for the year of separation?
In indicating, probably yes, CRA stated:
[I]f the individual was separated from his or her spouse or common-law partner for only part of the year because of a breakdown in their relationship, the individual could claim the wholly dependent person credit only if the individual did not deduct, in computing income, an amount paid to his or her spouse or common-law partner in respect of support payments. In your situation, to the extent that the child would be wholly dependent on the individual at any time in the year (and it would appear that the child is, since the individual has joint custody of his children), we are of the view that the individual could claim the wholly dependent person credit, provided, of course, that the individual does not deduct, in computing his income for the year, an amount paid to his spouse or common-law partner in respect of support payments. the extent that the taxpayer is not claiming a deduction for support payments made to a former spouse or common-law partner.