This paper addresses how to properly arrange affairs to allow for successful claiming of the eligible dependent tax credit [EDTC]. It also provides advice for structuring separation agreements to maximize the potential available under the EDTC. The paper provides a brief fact pattern illustrating what a successfully structured EDTC looks like. Then, it sets out the limits of the EDTC, the requirements for it to succeed, and how the deduction functions. There is also a brief discussion on the family law implications of this process. Recent developments in the jurisprudence are also highlighted.

This paper is part of a collection presented at LESA’s Family Law During Recessionary Times program in Calgary on October 4, 2017 and in Edmonton on October 11, 2017.