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posted Oct 31, 2019 2:33:50 AM

Does my child need to reach certain age before her dad can pay her for income splitting purpose? Her dad has self employment income. Thanks.

My husband and I and our 11 year old daughter live together. I have employment income and my husband has self employment income. TurboTax is showing we owe lots of income tax. We are wondering if he can pay our daughter for simple service so that we won't need to pay so much tax.

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Moderator
Oct 31, 2019 2:33:51 AM

No, there is no age limit for income splitting. However, please check with the CRA or a tax professional that is knowledgeable in this area, as this could cause issues with the CRA. If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are somewhere else you can call 613-940-8495. Here are more ways to contact the CRA: https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html


1 Replies
Moderator
Oct 31, 2019 2:33:51 AM

No, there is no age limit for income splitting. However, please check with the CRA or a tax professional that is knowledgeable in this area, as this could cause issues with the CRA. If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are somewhere else you can call 613-940-8495. Here are more ways to contact the CRA: https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html