13 November 2002 External T.I. 2002-0161235 - AMOUNT FOR AN ELIGIBLE DEPENDENT

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues:

Conditions for claiming Amount for an Eligible Dependent credit.

Position TAKEN:

Clarification of restrictions under subsection 118(5)

Reasons:

Error in original letter.

XXXXXXXXXX 2002-016123
T. Young, CA
November 13, 2002

Dear XXXXXXXXXX:

Re: Amount for an Eligible Dependent (AED) Credit -
Formerly the equivalent-to-spouse (ETS) Credit

We are writing to you in follow-up to our letter to you of January 7, 2002 (our reference 2001-010110), concerning eligibility for the ETS credit in a situation involving joint custody.

In our original letter, the last paragraph stated,

Subsection 118(5) of the Act would prevent a parent from claiming the equivalent-to-spouse credit in respect of a child if the parent is required to make child support payments to that parent's spouse or former spouse in respect of that child, or if the parent claims a deduction for the year because of section 60 in respect of a support amount paid to the spouse or former spouse. Whether or not one or both parents are required to pay child support in respect of a particular child is a question of fact and a determination cannot be made without examining the written agreement or court order.

We would like to clarify that, in the year of marriage breakdown, paragraph 118(5)(b) of the Act prevents a parent from claiming the AED credit in respect of a child, if the parent claims a deduction for the year because of section 60 in respect of a support amount paid to the spouse or former spouse. For years subsequent to the year of marriage breakdown, where the spouses live separate and apart throughout the year, paragraph 118(5)(a) of the Act prevents a parent from claiming the AED credit in respect of a child if the parent is required to pay a support amount to that parent's spouse or former spouse in respect of that child. These statements apply equally to situations involving common-law partners or former common-law partners.

We hope this will be helpful.

Yours truly,

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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