Can both parents claim the child in shared custody?

No. Under s. 118(5) of the Income Tax Act, only one parent may claim the eligible dependant amount for the same child in a given tax year. Where each parent has the child roughly equally, the parents must agree who claims — otherwise the CRA disallows the claim for both.

What if we have two children and 50/50 custody?

With two or more children in true shared parenting, parents commonly agree that each claims one child as an eligible dependant. This is expressly contemplated by the CRA and is the most common arrangement in shared-custody separation agreements.

Does the Canada Child Benefit split too?

Yes. In shared-custody situations the CCB is paid at 50% to each parent based on each parent's own income. This is automatic once both parents notify the CRA of the shared arrangement.

Do child support payments affect who can claim?

Yes. Under s. 118(5), a parent who is required to pay child support cannot claim the eligible dependant amount for that child. In shared custody with a set-off (only one parent nominally pays), a well-drafted separation agreement should record that both parents have a child support obligation to preserve the credit for both.

What should our separation agreement say?

It should explicitly (a) confirm each parent has a child support obligation under s. 9 of the Federal Child Support Guidelines with a set-off, and (b) allocate the eligible dependant amount for each child by name. This is a short paragraph that often preserves thousands of dollars per year.

Guide · Canada · Taxes

Who claims the child on taxes with 50/50 custody?

Only one parent can claim the eligible dependant amount for the same child. Here's how the CRA rule actually works, and how to preserve the credit in a shared-parenting separation agreement.

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The short answer: in Canada, only one parent can claim the eligible dependant amount (line 30400) for a given child in a given tax year — even where custody is exactly 50/50. Splitting the year doesn't work; splitting the children usually does.

The rule: Income Tax Act s. 118(5) and 118(5.1)

Section 118(5) says a parent who is required to pay child support cannot claim the eligible dependant credit for that child. Section 118(5.1) carves out the shared-custody exception: where both parents have a support obligation to each other (which is what a proper s. 9 set-off produces), the credit is available — but only to one of them.

One child

With one child in true 50/50, the parents must agree in writing who claims. If both claim, CRA denies the claim to both and issues re-assessments. The agreement should name the parent who will claim in each tax year.

Two or more children

With two or more children in 50/50, the CRA accepts an arrangement where each parent claims one child by name as their eligible dependant. This is the most common structure in BC separation agreements involving two children.

Canada Child Benefit is different

The CCB automatically splits 50/50 in shared custody based on each parent's own income once both parents notify the CRA. You do not need to elect it — but you do need to file Form RC66 or notify CRA of the change in custody.

Why the wording of your agreement matters

The credit is only available where both parents have a support obligation. If the agreement is drafted so that only one parent pays child support (rather than each parent paying their table amount with a set-off), the paying parent loses the credit entirely under s. 118(5). A short, correct paragraph in the separation agreement preserves the credit for the higher-income parent — often several thousand dollars per year.

Common questions

Frequently asked.

Can both parents claim the child in shared custody?: No. Under s. 118(5) of the Income Tax Act, only one parent may claim the eligible dependant amount for the same child in a given tax year. Where each parent has the child roughly equally, the parents must agree who claims — otherwise the CRA disallows the claim for both.
What if we have two children and 50/50 custody?: With two or more children in true shared parenting, parents commonly agree that each claims one child as an eligible dependant. This is expressly contemplated by the CRA and is the most common arrangement in shared-custody separation agreements.
Does the Canada Child Benefit split too?: Yes. In shared-custody situations the CCB is paid at 50% to each parent based on each parent's own income. This is automatic once both parents notify the CRA of the shared arrangement.
Do child support payments affect who can claim?: Yes. Under s. 118(5), a parent who is required to pay child support cannot claim the eligible dependant amount for that child. In shared custody with a set-off (only one parent nominally pays), a well-drafted separation agreement should record that both parents have a child support obligation to preserve the credit for both.
What should our separation agreement say?: It should explicitly (a) confirm each parent has a child support obligation under s. 9 of the Federal Child Support Guidelines with a set-off, and (b) allocate the eligible dependant amount for each child by name. This is a short paragraph that often preserves thousands of dollars per year.

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Book a Strategy Session Call 604 695 8486