We have been separated for the last three month of 2015 and still split 50:50 cost of daycare and equal custody. How do we claim daycare expenses?

[TurboTaxSummer · Accepted solution]

Hi there,

Thank you for your question. 

For income tax purposes, a couple is considered separated if they were living apart for more than 90 days in a given year. If you were separated On October 3 or after of 2015, you will not be recognized as separated until you file your 2016 return. This means you would still not be considered separated on December 31, 2015.

With respect to your question, if you were still married as of December 31, 2015, the lower income spouse is entitled to claim these expenses (see exceptions http://www.cra-arc.gc.ca/E/pbg/tf/t778/t778-15e.pdf). If your income is the same, you will have to decide amongst yourselves who will claim the expenses. If in fact you meet the criteria of being separated as of December 31, 2015, for the period up to separation, the lower income spouse will claim the childcare expenses. Thereafter, you can both claim the amounts only for the days you have custody of the child (provided shared custody of the child(ren) has been established).