If your daughter is under 18, then minors may have taxes owing if they have earned more income than:
- The federal basic personal amount ($12,069 for 2019). or
- Your provincial Basic personal amount (which varies by province).
However, even if you are minor and didn’t earn enough income to owe taxes, it may still be beneficial to file a return. For instance, if you had income tax or CPP premiums deducted at the source, you may be eligible to receive those deductions back in the form of a refund.
Is your child now required to file a tax return?
As with any Canadian citizen, your child isn’t generally required to file a tax return they have no tax owing. Usually, the amount earned by a minor child doesn’t hit the basic personal credit amount (around $11,000) meaning they won’t owe tax on their earnings. There are some exceptions.
- If your child had any income tax (or CPP premiums) deducted at the source, chances are they’ll receive those deductions back as a refund.
- Filing a return sets up your child’s information with CRA for future years. Many first returns still need to be mailed in, as opposed to NetFiling. Once the first return is processed, your child’s info will be filed, enabling them to file electronically in the future.
Should you have any further clarifications, we would be glad to help you through.
