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17 Year old dependent having Income for the first time in 2023


Sair

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Hi,

My 17 year old(Currently added as dependent in my file and living with us) worked 2 Summer months in 2023 as well as was a full time student for 2023 and received Tuition and Enrollment certificate.

When filing taxes for the family including dependent(and declaring his income), the software asks to pay for the whole family including myself, spouse and dependent(3 separate charges). However, if I don’t add his income and Tuition receipts(as if the dependent didn’t work in 2023), the taxes are free for the family including the dependent.

1/How to deal with this situation? Do I need to file dependent’s taxes separately but putting Dependent’s net income(Net Income) in Interview setup without putting his T4/RL1 and Tuition receipts?

2/Also,  in dependent Id it asks if the dependent has any income, so if I need to file dependent’s taxes separately, putting a Yes or No here won’t make any difference, right?

Please let me know the best solution.

Thanks,

 

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Thankyou Geo123. Adding Dependent income makes it a bit over $20,000.

1) In this case, shall i file taxes for the dependent seperately with new U.N and everything, but keeping the dependent still  in my file and Entering "Yes" for the question that "Does the dependent has any income in 2023"--- Pic attached. BUT without entering any "Dependent's Net Income Info(Pic attached)"  and/or adding his T4 slips?

2) Also, is there any point of keeping/deleting the dependent from my file? It won't make any difference when the taxes are filed seperately for the dependent, right?

Thankyou,

 

Screenshot 1.png

Screenshot 2.png

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Hello Hello Sair,

Line 30400 - Formerly referred to as the Equivalent-to-Spouse amount, the Amount for an Eligible Dependant Credit is a Non-Refundable Tax Credit designed for single adults who are not claiming the spouse/common-law partner credit and who are responsible for the financial care of a relative.

FYI You cannot split this amount with another person. Once you claim this amount for a dependant 18 years of age or older, no one else can claim this amount or an amount on line 30425 for that dependant.

Shared Custody  eligible dependant:

If you and another person can both claim this amount for the same dependant (such as shared custody of a child) but cannot agree who will claim the amount, neither of you can make the claim.

 

FYI Special situation to claim the Amount for an eligible dependant, line 30400

Answer Yes (rare!) ONLY if, at any time in the year, you did have a spouse or common-law partner but you were not living with, supporting, or being supported by that person. Eg. Non Resident

 

You may be able to claim this amount if, at any time in the year, you met all the following conditions at once:

 

* You do not have a spouse or common-law partner;

* You supported a dependant in 2023;

* You lived with the dependant in a home that you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant must also have been either.

* Your parent or grandparent by blood relationship, marriage, common-law partnership or adoption;

* Your child, your grandchildren, brother or sister and she is under 18 years of age or has, an impairment in physical or mental functions.

To claim the amount for an eligible dependant, you must first create the dependant's file. To create this file, follow the steps below:

1. On the "Interview" tab, click on "Add dependant" on the line to the right;

2. On the page entitled "Dependant identification", enter the dependant's information. Please note that the lines followed by a red asterisk are mandatory fields.

3. If the dependant is an adult, you must complete the page

"CRA questions", as well as the "Revenu Québec questions" for residents of Quebec and claim the solidarity tax credit.

4. If you have multiple several dependents, repeat step 1.

 Once the dependant's file has been created, and you meet the eligibility criteria (see link below), the program will make the claim for the eligible dependant amount automatically with no additional entries required.

If you have 2 or more children, the program will automatically select the child for whom the eligible dependant amount will be claimed. However, if you want to choose a specific child for this claim, please follow these steps:

 1. On the "Left-side menu on the Interview tab" of the child's file, located on the left-hand side, click on "Controls".

2. Then, on the page appearing on the right, select "Let MaxBack decide" to the question "Claim this dependant as the eligible dependant on federal 30400?".

The program will claim the eligible dependant amount on line 30400 of the Federal return, and line 5816 of your provincial forms (other than Quebec, which does not have an equivalent form).

In addition, Schedule 5 will be generated by the program.

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