Following a divorce, a single parent who lives with and supports his or her child may claim what is known as an “amount for an eligible dependant”, or AED, sometimes referred to as the single parent exemption. The rules respecting eligibility for the credit can be confusing and sometimes even arbitrary; it is important to ensure your eligibility before making the claim and to respond promptly to any request from the tax authorities for documentation establishing your right to claim the credit. As well, different rules apply with respect to who may claim the credit in the year of separation and in subsequent years.

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