A British Columbia father earning C$120,000 tried to claim a C$15,705 tax credit on his 2024 return. The Canada Revenue Agency said no, and in late August 2026 the Tax Court agreed. The reason cuts to the heart of tax credit eligibility for separated and divorced parents: under the Income Tax Act, a parent who is legally required to pay child support to the other parent cannot claim the eligible dependant amount.
The case, reported by tax expert Jamie Golombek in the Financial Post, is a pointed reminder of how one line in a court order can wipe out a credit worth thousands of dollars.
What is the eligible dependant amount?
The “amount for an eligible dependant” is a non-refundable credit on your personal tax return. It used to be called the “equivalent-to-spouse” amount. According to the Financial Post, it is available to a taxpayer who has no spouse or partner but who lives with and supports a dependent relative.
That relative can be a parent or grandparent, a child or grandchild, or a brother or sister, as long as the person is either under 18 or wholly dependent because of a physical or mental disability.
Here are the key figures for 2026:
- Dependant amount for 2026: C$16,452.
- Federal value: C$2,303, based on the 14 per cent non-refundable credit rate.
- Provincial credit: A parallel amount also applies, and its value depends on your province.
- Income reduction: The credit drops dollar-for-dollar by the dependant’s net income.
- Limit: It can be claimed only once per household each year, by one person.
About one million taxpayers claimed the credit in 2021, the most recent year with published statistics.
Why can’t a parent paying child support claim it?
The rule is specific. The Income Tax Act blocks the credit for any taxpayer who is required to pay child support to their former spouse or partner. That single condition is what sank the B.C. father’s claim.
According to a 2022 consent order from the Supreme Court of British Columbia, he had agreed to pay both child support and spousal support. Based on his C$120,000 income, his ex-wife’s zero income, and the fact that their son primarily lived with the mother, the order required him to pay:
- Child support: C$1,113 per month.
- Spousal support: C$2,632 per month.
- Start date: November 1, 2022, with no set end date.
Because that obligation was still in force, the CRA denied his 2024 claim outright.
What was the father’s argument?
The couple’s son was born in 2019. When the marriage broke down in 2022, the mother moved to Russia with the boy. By May 2024, however, both had returned to Canada and were living “separate and apart” in the father’s home.
The father testified that, in exchange for his ex-wife and son coming back, he would provide their material needs “in kind” and stop paying support. He said this new arrangement “superseded and replaced his obligation to pay child support and spousal support as set out in the Consent Order.” Because the son no longer lived primarily with the mother, he argued the support terms were “obsolete and irrelevant by mid-2024.”
The judge was openly skeptical. As Golombek reported, the judge called the claimed deal “hard to believe” and asked: “Why would a young mother surrender her legal right to receive child support and spousal support based solely on a promise from her estranged husband that he would provide for all their material needs?” The mother did not testify.
Why did the court side with the CRA?
The CRA’s position was straightforward: without a formal variation of the court order, the order stayed in effect throughout 2024. So the father was still “required to pay a support amount,” even if he personally felt released from it.
The judge examined that exact phrase and concluded that “required” means a legal obligation. Crucially, even an oral agreement between the couple could not override a court order. Only the court itself can vary such an order. Because the obligation remained legally in place, the Tax Act barred the father from claiming the dependant credit.
Has this happened before?
Yes. Nearly twenty years ago, a similar case reached the Tax Court. A divorced father who shared custody argued that Canada’s tax law discriminated against dads like him. In his settlement, he and his ex-wife had agreed each would claim the credit for one of their two daughters. The CRA still denied his claim because he was the sole parent paying support.
The judge in that earlier case explained the logic behind the rule. Because child support guidelines already assume the paying parent cannot claim the dependant credit, that parent’s support payment is set lower than it otherwise would be. In effect, the missing credit is already baked into the reduced payment.
What should separated parents do about the credit?
The lesson from this decision is about paperwork, not good intentions. A private understanding between former partners carries no weight against a live court order. If your family situation has genuinely changed, the safe route is to apply to the court to formally vary the order before assuming your support obligation has ended.
You can review the full column by Jamie Golombek, FCPA, FCA, CFP, of CIBC Private Wealth, on the Financial Post at financialpost.com. For the official rules on the eligible dependant amount, check the Canada Revenue Agency guidance at canada.ca before filing. Where support is legally payable, this credit will not be available to the parent paying it.
