According to TurboTax Canada, If this is your first tax season as a divorced or separated parent with custody of your children, there are a few things to keep in mind:
1. Your Marital Status:
- You must still submit your income tax return as a married couple if you separate or divorce after December 31st. You must file your tax return as "separated" until your divorce is finalized, and then you can file your tax return as "divorced" once your divorce agreement is completed.
2. Your Legal Fees:
- You can claim legal fees incurred to collect child or spousal support on your tax return.
- Fees related to collecting late support or attempting to enhance support payments may also be claimed.
- Legal fees paid to your lawyer to form the separation or divorce agreement or establish custody, on the other hand, are not tax-deductible.
3. Support Payment:
- You may be obligated to report financial support from your former spouse (spousal support or child support) on your tax return.
- If you receive spousal support (sometimes known as "alimony"), you must report it on your tax return as taxable income.
4. Claiming Tax Credits:
- It is important to notify the CRA of your change in marital status as soon as possible to ascertain if you're eligible for any of the following benefits: Canada Child Benefit, GST/HST credit, and provincial benefits.
- You may be able to claim your child as an "eligible dependent," also known as an "amount for an eligible dependant" credit, if you are a single parent with a minor child and this large credit is available for one qualified child each year only.
For additional details, here is our TurboTax article on How to file your Taxes: Divorced with Children.
If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.
Thank you for using TurboTax.
