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BobbieTax
Returning Member

Climate Action Incentive - How to Claim only 2 of 4 Kids?

Hi.  We have shared custody of 4 kids.  Both of us list all 4 kids as dependents on our taxes (so that things like Canada Child Benefit is calculated correctly for each of us).  Due to this, box 60103 is automatically populated with "3" (i.e. 3 other kids in addition to the main 1 being claimed for a total of 4).  However, we are each meant to claim 2 different kids for this credit (so, box 60103 should have "1" input into it).  I cannot find a way to validly change this in TurboTax.  If I double click on this box a pop-up comes up and there is another box called "Qualified dependant for Climate Action."  By default, they all say "Yes."  The only way to change it to "No" is to double click that box and change one of the questions in the list to "No" but all of the answers are actually "Yes" so it doesn't make sense to do so (e.g. I can't answer that my kid wasn't a resident of Canada, etc. as she was).  As mentioned, we each need to keep all 4 kids a dependents overall.  Note:  last year, we were not aware the TurboTax software did this so we both wound up claiming all 4 kids for the CAI, CRA noticed it and so, we had to subsequently manually refile our taxes to each claim just 2 kids for the credit.  

How can one change it so that not all kids are claimed by both parents for the Climate Action Incentive?  

2 Replies
BobbieTax
Returning Member

Climate Action Incentive - How to Claim only 2 of 4 Kids?

Note that my ex spouse used the online version and could select/deselect which kids she was claiming this CAI for or not.  I cannot seem to do this in the downloaded version (it automatically chooses to claim the credit for all kids....which will result in an overclaim since as explained, we are each meant to claim 2 of the 4 kids).

BobbieTax
Returning Member

Climate Action Incentive - How to Claim only 2 of 4 Kids?

New year and another wrinkle.  I don't think TurboTax understands that parents of multiple kids can separate claims...i.e. each parent can claim particular kids (in my case, 4 kids, each parent can claim 2 of the kids).  This is stated right on the CRA's website.  Last year (tax year 2020), this could be done on the online version of TurboTax.  I found out how to do it on the downloaded version.  This can still be done this year (tax year 2021) on the downloaded version (you go to the CAI Worksheet, double click on a box a bit to the left of Line 4.  It brings up a dialogue box for your dependants.  Within this you can toggle between Yes and No in a box entitled "Qualified dependant for Climate Action."  Nice and easy (except that the software should ask you this in the Interview method instead of assuming you are claiming it for all your kids, especially when you marital status is divorced or separated.  **New wrinkle for this year (tax year 2021).  Due the gov't separating the CAI payments from your tax refund (or owed amount), the line this used to be on on pg. 4 of TI General (Line 45110) is no longer there.  So you cannot go to it to on the online version of TurboTax.  As a result, you can change it so that you are NOT claiming ALL your dependants for the CAI.  It assumes you are claiming it for all of them.  Per everything above (mainly, how each parent can claim different kids for the CAI), TurboTax needs to change this.  I brought this up last year (both here and on the phone) when I initially couldn't figure out how to do on the download version.  This year, a phone rep actually said that you cannot separate it (i.e. one parent must claim the credit).  This is INCORRECT.  It is only correct in the sense that only one parent can claim it for a given dependant (i.e. both parents can't claim it for the same kid).  However, Parent A can claim for kid 1 and 2 while Parent B can claim it for kid 3 and 4.  This is 100% the case as it IS CURRENTLY POSSIBLE on the downloaded version AND it is CRA's rule.  It is inaccessible on the online version.  The phone rep we talked to does not understand the issue (i.e. what I just explained.  SEPARATING claims for different dependants is different from SPLITTING the claim for all or any given dependant/kid).  By the way, due to this issue, per a prior post, we had to subsequently AMEND our tax returns because the claims were NOT separated (each parent had claimed all 4 kids because TurboTax defaulted to this without any notification that it was even an option to separate them).  ***HOW can I SEPARATE the claim on the online version of TurboTax to file a correct/legal tax return??***