Changes in Living Arrangements: Eligible Dependant Claims

The eligible dependant credit may be available to certain unmarried, separated, divorced or widowed taxpayers who support an eligible dependant living with them in a home they maintain. The newsletter estimates annual tax savings of approximately $2,500 to $4,500, depending on province and income.

An August 20, 2026 Tax Court of Canada case involved a father claiming the credit for his son. An earlier interim consent order required spousal and child support payments, but the father argued that a later oral arrangement changed the family's living circumstances: the parents lived separately under the same roof with the child.

Taxpayer Loses

The court held that the oral agreement did not alter the taxpayer's legal support obligation under the existing court order. Without a variation by the issuing court, the obligation remained in force and prevented the eligible dependant claim.

Action: When separation or custody arrangements change, update the relevant written and court-approved documents rather than relying solely on an informal verbal agreement.