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Do I have to include my dependent 16yr old sons income of $8000 on my tax return if he has filed his own return?
I'm a single parent can I claim my son as a dependent and not include his income on my return? When I include his income in the section asking if the dependent has earned income it reduces my refund to owing. I am also transferring UCCB to him but will not let me file my return. I see there is an error with this as many people have asked the question. What is the work around?
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After you file
When you make a claim for Eligible Dependant you are required to report the dependant's income, and yes, this will reduce the amount of the credit you are able to claim.
When you decide to show the UCCB as the income of your dependant, that is also included as part of the income. If you have more than one child, you can claim the dependant with the lowest net income...however you do have to include the UCCB as part of the income. If your son is your only child, then you would report his income as $8000 + the amount of the UCCB. If you do have more than one child, you are required to report the full UCCB received as income of the child you choose as eligible dependant. If you do not choose to include the UCCB as your son's income, you must include that as part of your own income, and be subject to the tax on that income. Even if your income falls within the lowest tax bracket, you will tend to save some money by claiming the UCCB as your dependant's income, as provinces have certain amounts of income that can be earned before the provincial eligible dependant credit is reduced.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/117-eng.html
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After you file
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After you file
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/305/rtrn-eng.html
Schedule 5
http://www.cra-arc.gc.ca/E/pbg/tf/5000-s5/5000-s5-15e.pdf
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After you file
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