My son has a signed DTC that I normally add to my return. However, 2022 he made enough income that it may be a benefit for him to use his own DTC on his own return. How can I apply his DTC to his own return and still keep the dependent amount and MB Caregiver amount on my return? Am I just hooped and have to claim everything on my own return?
You can still list your son as your dependant even if he is not transferring his disability tax credit to you. But please note that even if he uses the disability tax credit on his own return, he can still transfer any unused portions to you.
As long as the DTC form that was submitted to the CRA is still valid, you can continue to claim credits like the Caregiver credit. However, if you are claiming him as an eligible dependant, his income might now high enough that you can no longer claim the credit.
Will the program flag unused portions to be transferred to me?
Also, how will I know if his income is high enough to disqualify him as a dependent? He is 17.
TurboTax will automatically calculate the amount your son can transfer based on the income and other info you entered on your return. You’ll find the calculated amount on your Dependant Credit Summary.
For the eligible dependant claim, you son would have to have made less than your basic personal amount plus $2,350 since they were dependent on you because of a disability. For 2022 the basic personal amount is $14,398, so your son would have to have made less than $16,748.