Confused with claiming Line 305 dependents

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fredfin
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Confused with claiming Line 305 dependents

Post by fredfin »

Hello,

I live with both parents and both are just under 65 years old. They both make much less than $10k per year. We rent the home and I pay for the rent. Can I claim line 305 for one of them?

I've had different answers from accounting friends. Some say yes I can claim line 305 even if my parents are under 65. But some say my parents must be over 65 and I have to use line 315 for caregiver amount instead. The CRA website does not say how old the parents must be for Line 305. I'm a bit confused and hoping someone can shed some light on this. Thanks.
Yasehtor
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Re: Confused with claiming Line 305 dependents

Post by Yasehtor »

According to CRA:

"Each dependant must have met ALL of the following criteria:

He or she was18 years of age or older
He or she had a net income in 2016 (line 236 of his or her return, or it would have been if he or she filed a return) of less than $20,607 ($22,728 if he or she was eligible for the family caregiver amount)
He or she was dependent on you due to an impairment in physical or mental functions or, if he or she is your or your spouse's or common-law partner's parent or grandparent, was born in 1951 or earlier"


So if they have an impairment in physical or mental functions they just need to be over age 18. However if they do not and are a parent then you are eligible if they 65 or older.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... r-eng.html
fredfin
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Re: Confused with claiming Line 305 dependents

Post by fredfin »

Yes but that is for line 315 which is caregiver amount. I am wondering about line 305 for the dependants amount.

My friend from the CRA said I can claim 305 even if my dad is under 65, as long as my mother does not claim his spouse amount on line 303. But I went to an accounting office and they said he has to be 65 if I want to claim 305 or 315. I'm not sure who is right now.

Has anyone here done this before?
Spudd
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Re: Confused with claiming Line 305 dependents

Post by Spudd »

I haven't, but the CRA page on it seems to agree with your friend from the CRA.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... l-eng.html

It doesn't mention anything about being 65.

However, it also says you cannot claim line 305 if you have a spouse - do you have a spouse?
fredfin
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Re: Confused with claiming Line 305 dependents

Post by fredfin »

No I don't have a spouse. Yes based on the CRA website and my CRA friend, I should be able to claim my dad as a dependent since I pay for the rent and most other things at home. I'm just afraid the CRA might deny it because I don't meet a certain criteria that they didn't post on their website.

If anyone else has experience with this situation, please chime in. I'm sure there are other people taking care of parents under 65 that could benefit from this knowledge.
Spudd
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Re: Confused with claiming Line 305 dependents

Post by Spudd »

I personally have full confidence in what the CRA posts on their website. If you feel nervous, take a screenshot of the website and store it in your taxes folder as backup. If they question you, you will have proof that you did it in good faith with what they had posted.
Yasehtor
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Re: Confused with claiming Line 305 dependents

Post by Yasehtor »

fredfin............my apologies for confusing which claim you wanted to make.

In any case your CRA friend is correct... You can claim either parent if they live with you, but not both.

The amount of this federal non-refundable tax credit is $11,474 for 2016, the same as the spousal amount tax credit. Any income they have is deducted from the non-refundable tax credit so choose the parent who makes the least income.

It really works the same way as if you had a spouse. It is quite common for people who are divorced to use this line 305 to claim a child as an eligible dependant.

Age is not a factor...
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