Can You Still Claim Dependants After a Separation?

The difference between separation and divorce

The Canada Revenue Agency (CRA) defines a divorce as the legal ending of a marriage by a court.

A separation happens when two people who have been living together (either legally married or in a common-law relationship) decide to live separately and are not likely to live together again.

In order to file a tax return with the status “separated,” you must have been separated from your spouse for at least 90 consecutive days by December 31 of the taxation year. For example, if you and your spouse separated on October 15, 2023, both spouses would still file their 2023 returns as “married” as the 90-day rule has not been met.

Once you have been separated for at least 90 days, you should inform the CRA of your separation. You may either contact the CRA directly or use your CRA My Account’s “Change My Marital Status” feature.

Numerous benefit programs, such as the Canada child benefit (CCB) and the goods and services tax/harmonized sales tax (GST/HST) credit, are calculated using the combined income of both spouses. If you have recently separated, you may now qualify for one or more of these benefits or receive higher payments upon recalculation.

Claiming an eligible dependant

Once you and your spouse separate, one (or both) of you may now be able to claim a credit for qualifying dependants. If at any time during the year you did not have a spouse (or common-law partner) and supported and lived with a minor child, grandchild, or other relative such as an elderly parent, you may qualify for the eligible dependant credit. Formerly known as the “equivalent to married” amount, this may be a new credit for you—as taxpayers who have spouses do not qualify.

Each spouse may be able to claim this credit depending upon the situation. For example, if you are living with and supporting your elderly mother and meet the qualifications, you may claim the credit for her. If your spouse lives with and supports your minor child, he/she could claim the eligible dependant credit for the child.

You can claim this non-refundable tax credit on Schedule 1 and the corresponding provincial or territorial credit on Form 428.

Potential exclusions to claiming an eligible dependant

Only one person in a household may make an eligible dependant claim even if there is more than one dependant in the household. This is important to remember, especially in multi-generation households. Other key points:

• If anyone is claiming a spousal amount for your dependant, you cannot claim them as an eligible dependant credit on your tax return.

• You cannot claim both the eligible dependant amount and the amount for infirm dependants for the same person. (However, you can claim both the eligible dependant credit and the Canada Caregiver credit, if applicable.)

Managing shared custody

If you and your former spouse share custody of your minor child, special rules apply. You must decide which one of you will make the claim as the credit cannot be split. In many cases, parents alternate yearly as far as who will take the deduction. More considerations:

• Be aware that if you can’t agree on who will claim the amount, then neither of you is allowed to claim it.

• If you made support payments during the tax year for the child, in most cases you are not allowed to claim that child for the eligible dependant credit.

Spousal tax credits you can no longer claim

Once you are separated, there are several tax credits you can no longer claim or share with your former spouse.

Tax credits you can no longer share include:

• the pension income amount

• the disability amount

• the tuition amount

Keep an eye on the future

While there's a lot to think about in the midst of a separation, don't overlook how this new change to your marital status might affect filing your taxes. Because you are no longer claiming a spousal credit, you may qualify for another type of credit if you have eligible dependants living in your household. Or you may be eligible to claim new credits that were not available to you while you were part of a couple.

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