ARCHIVED – Benefit entitlements in cases of shared custody

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1. What has changed with respect to benefit payments in cases of shared custody?
2. What is a shared-custody parent?
3. How will my benefits be calculated as a shared-custody parent?
4. What benefits are affected by the change?
5. When will the change be effective?
6. What currently happens when the custody of a child is shared between two individuals?
7. How does the shared eligibility policy work?
8. If I currently have shared custody of my child and receive benefits on a rotational schedule, will I fall under the new rules?
9. I currently have shared custody with my former spouse. How can we take advantage of the new rules?
10. Will I receive more benefits as a shared-custody parent than I do now?
11. Where can I get more information?

1. What has changed with respect to benefit payments in cases of shared custody?

The budget has introduced the concept of a shared-custody parent and to allow each shared-custody parent to receive the Canada Child Tax Benefit (CCTB) and the Universal Child Care Benefit (UCCB) amounts in a particular month. In addition, each shared-custody parent will receive the child component of the goods and services tax/harmonized sales tax (GST/HST) credit quarterly in respect of the child.

2. What is a shared-custody parent?

Generally, a shared-custody parent of a child is one of the two parents who:

• are living in separate locations;
• are living with the child on an equal or near-equal basis; and
• are primarily responsible for the child's care and upbringing when living with the child.

3. How will my benefits be calculated as a shared-custody parent?

Your benefits will be calculated as if the child was your eligible dependant and you will be paid 50% of the benefits associated with the child.

4. What benefits are affected by the change?

The Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit), the GST/HST credit and the Universal Child Care Benefit are all affected by this change.

5. When will the change be effective?

The change will be effective for benefits paid for periods starting in July 2011.

6. What currently happens when the custody of a child is shared between two individuals?

Only one individual can be eligible in respect of a child for a particular CCTB, UCCB, or GST/HST credit payment, even when custody of the child is shared between two individuals.

To address this problem, the Canada Revenue Agency (CRA) developed a shared eligibility policy.

7. How does the shared eligibility policy work?

If two parents share custody of a child more or less equally, the CRA applies a rotational schedule, where eligibility for the child (or children) would be allowed to each parent on a six-month on, six-month off rotation. This policy will continue until June 2011.

8. If I currently have shared custody of my child and receive benefits on a rotational schedule, will I fall under the new rules?

If you share custody of a child, you may be receiving benefits on a six-month rotational schedule. If you are, your payments will automatically fall under the new rules in July 2011.

9. I currently have shared custody with my former spouse. How can we take advantage of the new rules?

If you and another individual meet the criteria of a shared-custody parent, the person who is currently not receiving benefits should submit a form RC66, Canada Child Benefits Application (which is also a GST/HST credit child registration form) to the CRA, with a note or letter attached that explains the child's living arrangement.

10. Will I receive more benefits as a shared-custody parent than I do now?

Over the course of the year, assuming there are no other changes to your family situation, you will receive the same amount as you would under the six-month rotational schedule.

11. Where can I get more information?

The CRA encourages taxpayers to check its Web site often. All new forms, policies, and guidelines are posted there as soon as they become available.

Date modified:

2015-07-15