Well . . . I've called the CRA to ask them what was going on today.1st phone call
- after about five minutes of canned messages was told that call volume is too high and nobody can talk to me.2nd phone call
(made immediately after hanging up from first call) - got put on hold for about ten minutes, got through to an agent, performed all security checks (name, DOB, address, SSN, line 150 and line 350 of last return), explained problem. I was put on hold for twenty minutes, then she came back and said that she couldn't answer my question. I was transferred to another person (15 minute hold wait).
The second person that I talked to (after we performed all security checks again - name, DOB, address, SSN, line 150 and line 350 of last return) said that the calculation of net income for UCCB is made by the CRA before applying the child care expenses deduction. My net income is about a hundred dollars lower than my wife's before the UCCB and child care deductions. The CRA therefore claimed the UCCB as my own expense - which raises my net income above my wife's, which disallows me to claim the child care expenses.
If they had done things in the reverse order (my net income is initially lower/I claim the child care expenses, then my net income is higher/my wife claims the UCCB) then things work out exactly as I originally claimed them.
I asked if there was any information available (online or in the forms) to tax filers that the order the CRA followed is the order that must be followed when filing a return. First the agent told me not to worry, the CRA accountants are much smarter than I am, so they definately did it right. Then she gave me several references to internal CRA documents, and I asked where I could find them online. Then she told me that the documents aren't available to people who don't work for the CRA. So I asked again if there are any documents that are available to tax filers that would explain the correct order to apply things. I was told to look up the Income Tax Act section 56 (6) and 56 (9.1), they would make it all clear.
So, after talking with her I looked up the Income Tax Act online for the sections mentioned:
56(6) - Child care benefit
(6) There shall be included in computing the income of a taxpayer for a taxation year the total of all amounts each of which is a benefit paid under section 4 of the Universal Child Care Benefit Act that is received in the taxation year by
(a) the taxpayer, if
(i) the taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) at the end of the year and the taxpayer does not make a designation under subsection (6.1) for the taxation year, or
(ii) the income, for the taxation year, of the person who is the taxpayer’s cohabiting spouse or common-law partner at the end of the taxation year is equal to or greater than the income of the taxpayer for the taxation year;
(b) the taxpayer’s cohabiting spouse or common-law partner at the end of the taxation year, if the income of the cohabiting spouse or common-law partner for the taxation year is greater than the taxpayer’s income for the taxation year; or
(c) an individual who makes a designation under subsection (6.1) in respect of the taxpayer for the taxation year.
(6.1) If, at the end of the taxation year, a taxpayer does not have a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6), the taxpayer may designate, in the taxpayer’s return of income for the taxation year, the total of all amounts, each of which is a benefit received in the taxation year by the taxpayer under section 4 of the Universal Child Care Benefit Act, to be income of
(a) if the taxpayer deducts an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of an individual, the individual; or
(b) in any other case, a child who is a qualified dependant (as defined in section 2 of the Universal Child Care Benefit Act) of the taxpayer.
56 (9.1) - For the purposes of subsection (6), income of a person for a taxation year means the amount that would, in the absence of that subsection, paragraphs (1)(s) and (u) and 60(v.1), (w) and (y) and section 63, be the income of the person for the taxation year.
. . . since that didn't seem to answer my question:3rd phone call
- waited about ten minutes to get a hold of someone), performed all security checks (name, DOB, address, SSN, line 150 and line 350 of last return), explained situation again. I then explained the problem that the order you apply the deductions matters in this case, and that I'd like to be shown the form or online documentation for how to file the return correctly. Was put on hold for 30 minutes and then was disconnected.
Guess I'll try again tomorrow. At least I've answered my first question - yes, they do appear to just be fucking with me. :P