Posted on: 29-02-08 11:25:38
I am applying for dependant credit for my mother. She is PR. Last year I entered the information on my return but this year the software is asking me create profile of dependant seperately. I did that and it allows to take me the credit for dependant care Line 315.
My question is: Do I have to file return for the dependant as well? I am using UFile.
Quote:
Originally posted by Desi # 1
I am applying for dependant credit for my mother. She is PR. Last year I entered the information on my return but this year the software is asking me create profile of dependant separately. I did that and it allows to take me the credit for dependant care Line 315.
My question is: Do I have to file return for the dependant as well? I am using UFile.
Yes.
In order to claim care giver credit on line 315, you have to file the return for the dependent as CRA would calculate your entitlement based on your dependents net income.
Follow this http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/315/menu-e.html
Moreover, it is always advisable to file tax return for every person over 18 years even if he/she does not have any income as this will get him/her certain refundable tax credits.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks I will do that.
Then I believe I have to send paper return for my mother(being first timer) and net file for myself.
1. Do I have to file 2005 return as well as I claimed dependant care for that year.
2. What will happen if the person lives outside the country for whole year (though PR) and you are sending money on regular basis for support.
3. Do we have report pension received from Govt in India?
Quote:
Originally posted by Desi # 1
Thanks I will do that.
Then I believe I have to send paper return for my mother(being first timer) and net file for myself.
1. Do I have to file 2005 return as well as I claimed dependant care for that year.
2. What will happen if the person lives outside the country for whole year (though PR) and you are sending money on regular basis for support.
3. Do we have report pension received from Govt in India?
1. If your mom became a PR in 2005 then you should file tax returns for the year 2005, 2006, & 2007 and she may get certain credits and GST.
2. You may not get care giver amount for a person who did not live with you for any time of the year. However, you can call CRA and confirm claiming the amount as you took her care by sending her the money to India.
3. Yes you should report your world wide income in your tax return. However, you may be able to claim the tax paid, if any, as India does have a tax treaty with Canada to avoid double taxation.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramod, Thanks for your input
