At least once a day, we receive a call or email from clients wondering whether they can continue to declare their 18-year-old child as a dependant? Do they have to file a tax return for this child? Here are some answers to the most common questions.
Last summer, my child earned income. Does he/she need to file a return?
It depends:
- If your child is a minor, is dependent on you and has no tax to pay, he/she is not obliged to file a return. However, if tax was withheld at source on the earned income, it is to your child’s advantage to file a tax return to recover the tax withheld as a refund.
- Children who have reached the age of majority must file an income tax return in their own name. Not only will they be able to recover the tax they had paid, but they might also be eligible for the GST/HST credit and the solidarity tax credit.
Does my child’s income have an impact on my income tax return?
- Yes, if you are a single parent and you are claiming the eligible dependant credit, the amount the child earned is deducted from this credit when you file your income tax return. If you have a second eligible child, you can claim the minor with the lower income as a dependant.
- No, if you have a spouse, your child’s income does not have any impact on your income tax return.
Until what age can I declare my child as a dependant?
- Even if you continue providing for your children, as soon as they turn 18, you should know that, from a tax point of view, you can no longer declare them as a dependant. However, if your child has reached the age of majority and has a recognized disability, you can apply for the Canada Caregiver Credit, as long as your child continues to live with you.
- The good news is that if your child is a full-time student and can’t use all of his/her tuition credits, you can claim the tax credit for tuition fees on your return.
If you have more questions, don’t hesitate to contact us at 1-844-200–IMPO (4676). Our team will be pleased to assist you.
We thank you for your trust in these difficult times.
You can access your client space at any time by clicking here.
Take care of yourself and your loved ones and stay healthy. That’s all that matters!
Sincerely,
The Taxō team