Can family members file each other as a dependent, or can more than one family member file someone as a dependent if we help each other out financially?

[ayusmani]

I am a 25 year old living with my dad and two younger siblings (aged 22 and 14). My dad is the home owner, but I help out with the expenses for my 14 year old sibling, and sometimes my dad's expenses as well. However, my dad also helps me with my expenses at times and covers my siblings for the most part. Would both me and my dad claim each other as a dependent, along with both of us claiming my 14 year old sibling as a dependent?

[katherinetax]

As per TurboTax, an eligible dependant varies based on the credit or deduction you want to claim. Many different people can qualify as dependants, and someone who qualifies as a dependant for the purposes of one credit may not qualify for another dependant credit. 

In regards to the Eligible Dependant Credit, TurboTax states that in some cases, even if you meet the criteria for claiming the eligible dependant claim, you are still not allowed to make the claim. In particular, 

• Only “one person per household” is allowed to make this claim, regardless of the number of dependants in the house.
• If someone else (usually the other parent) is claiming an amount on Line 30400 of their return for this dependent, you cannot make a claim for that same dependant. For example, if you and your dad can both claim the amount for your younger sibling, you must agree on who will claim the amount. If you cannot agree, neither of you can claim the Amount for an Eligible Dependant for that child.

Another thing to keep in mind is that you can only make this claim for one dependant.

To learn more about some common dependant tax credits, please read through this TurboTax article: Who are Considered Dependants?

Thank you for choosing TurboTax.

[there-hey]

As per the Canada Revenue Agency (CRA), to claim the credit, the dependent must live with you in a home you maintain. For example, if you take care of a dependant, but you live in a home maintained by your parents or someone else, you may not claim this credit. You also cannot make an eligible dependent claim for someone who was only visiting you.

Apart from that, to claim eligible dependent credit for one dependant, at any time in the year, you must meet all the following conditions:

• You did not have a spouse or common-law partner or, if you did, you were not living with them, supporting them, or being supported by them
• You supported the dependant in 2022
• You lived with the dependant (in most cases in Canada) in a home you maintained. You cannot claim this amount for a person who was only visiting you

Even if you meet the criteria for claiming the eligible dependant claim, you are still not allowed to make the claim. In particular;

• If you or someone else is declaring an amount on Line 30300 as their spouse/common-law partner on their tax return, you cannot claim that person as your dependant. For example, if your grandmother is dependent on you but your grandfather claims the spouse credit for her, you cannot claim her as a dependant, regardless of how involved you are in her care.
• Only “one person per household” is allowed to make this claim, regardless of the number of dependants in the house.
• If someone else (usually the other parent) is claiming an amount on Line 30400 of their return for this dependent, you cannot make a claim for that same dependant. For example, you and the other parent have shared custody and can both claim the amount for the same dependant, you must agree on who will claim the amount. If you cannot agree, neither of you can claim the Amount for an Eligible Dependent for that child.
• If you are “required” to make child support payments for a child and the other parent is not required to, you cannot claim the Amount for an Eligible Dependant for that child. Only the parent who does not pay child support can claim the amount.
  • There are special rules in place in cases where “both” parents are required to pay child support. Again, in this case, you must decide who will be making the claim or CRA will disallow the claim for both parents if they cannot reach a mutual decision.

Note: Another thing to keep in mind is that you can only make the claim for one dependant.

For more information, please refer to the Canada Revenue Agency(CRA) page: Can you claim an amount for an eligible dependant?

Line 30400 – Amount for an eligible dependant

TurboTax FAQs page: Claiming the Amount for an Eligible Dependant Credit

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