Tax benefits of supporting parents


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web2000   
Member since: May 06
Posts: 849
Location:

Post ID: #PID Posted on: 20-04-11 09:12:01

My parents immigrated to Canada in 2010 and stayed with me for few months. They returned back in Jan 2011. Both are under the age of 65. Can I claim any tax benefits in my 2010 tax return?

An urgent reply is needed.



Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 20-04-11 09:52:16

Quote:
Originally posted by web2000

My parents immigrated to Canada in 2010 and stayed with me for few months. They returned back in Jan 2011. Both are under the age of 65. Can I claim any tax benefits in my 2010 tax return?

An urgent reply is needed.




If your parents immigrated to Canada in 2010 you should file their returns as well. But as for claiming them as your dependent, you may be out of luck as they are not yet 65 years of age.

Read below from this http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-04-10e.html#P1211_160000


Line 315 - Caregiver amount

If, at any time in 2010, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,223 for each dependant. Each dependant must have been one of the following individuals:

your or your spouse's or common-law partner's child or grandchild; or
your or your spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.
In addition, each dependant must meet all of the following conditions. The person must have:

been 18 years of age or older at the time he or she lived with you;
had a net income in 2010 (line 236 of his or her return, or the amount that it would be if he or she filed a return) of less than $18,645; and
been dependent on you due to mental or physical impairment or, if he or she is your or your spouse's or common-law partner's parent or grandparent, born in 1945 or earlier.


-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



web2000   
Member since: May 06
Posts: 849
Location:

Post ID: #PID Posted on: 20-04-11 10:17:25

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

My parents immigrated to Canada in 2010 and stayed with me for few months. They returned back in Jan 2011. Both are under the age of 65. Can I claim any tax benefits in my 2010 tax return?

An urgent reply is needed.




If your parents immigrated to Canada in 2010 you should file their returns as well. But as for claiming them as your dependent, you may be out of luck as they are not yet 65 years of age.

Read below from this http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-04-10e.html#P1211_160000


Line 315 - Caregiver amount

If, at any time in 2010, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,223 for each dependant. Each dependant must have been one of the following individuals:

your or your spouse's or common-law partner's child or grandchild; or
your or your spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.
In addition, each dependant must meet all of the following conditions. The person must have:

been 18 years of age or older at the time he or she lived with you;
had a net income in 2010 (line 236 of his or her return, or the amount that it would be if he or she filed a return) of less than $18,645; and
been dependent on you due to mental or physical impairment or, if he or she is your or your spouse's or common-law partner's parent or grandparent, born in 1945 or earlier.



Thanks for the reply.
My doubt was about the age which is < 65 yrs.

1. Is it mandatory to file their tax returns as they had no income? I know they can have some tax benefits like GST claims, but I would rather ignore to claim that?
2. Do I have to file their tax returns or they will do it themselves?






Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 20-04-11 10:42:11

Quote:
Originally posted by web2000

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

My parents immigrated to Canada in 2010 and stayed with me for few months. They returned back in Jan 2011. Both are under the age of 65. Can I claim any tax benefits in my 2010 tax return?

An urgent reply is needed.




If your parents immigrated to Canada in 2010 you should file their returns as well. But as for claiming them as your dependent, you may be out of luck as they are not yet 65 years of age.

Read below from this http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-04-10e.html#P1211_160000


Line 315 - Caregiver amount

If, at any time in 2010, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,223 for each dependant. Each dependant must have been one of the following individuals:

your or your spouse's or common-law partner's child or grandchild; or
your or your spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.
In addition, each dependant must meet all of the following conditions. The person must have:

been 18 years of age or older at the time he or she lived with you;
had a net income in 2010 (line 236 of his or her return, or the amount that it would be if he or she filed a return) of less than $18,645; and
been dependent on you due to mental or physical impairment or, if he or she is your or your spouse's or common-law partner's parent or grandparent, born in 1945 or earlier.



Thanks for the reply.
My doubt was about the age which is < 65 yrs.

1. Is it mandatory to file their tax returns as they had no income? I know they can have some tax benefits like GST claims, but I would rather ignore to claim that?
2. Do I have to file their tax returns or they will do it themselves?







It is not mandatory for them to file the tax returns as they have NIL income but sure they do get some benefits and if you do not need them, still file the return and DONATE that money to your favorite charity, either here or in India.

You can file return on their behalf, if they authorize you.


-----------------------------------------------------------------


Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



web2000   
Member since: May 06
Posts: 849
Location:

Post ID: #PID Posted on: 20-04-11 13:30:31

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

Quote:
Originally posted by Pramod Chopra

Quote:
Originally posted by web2000

My parents immigrated to Canada in 2010 and stayed with me for few months. They returned back in Jan 2011. Both are under the age of 65. Can I claim any tax benefits in my 2010 tax return?

An urgent reply is needed.




If your parents immigrated to Canada in 2010 you should file their returns as well. But as for claiming them as your dependent, you may be out of luck as they are not yet 65 years of age.

Read below from this http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-04-10e.html#P1211_160000


Line 315 - Caregiver amount

If, at any time in 2010, you (either alone or with another person) maintained a dwelling where you and one or more of your dependants lived, you may be able to claim a maximum amount of $4,223 for each dependant. Each dependant must have been one of the following individuals:

your or your spouse's or common-law partner's child or grandchild; or
your or your spouse's or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada. You cannot claim this amount for a person who was only visiting you.
In addition, each dependant must meet all of the following conditions. The person must have:

been 18 years of age or older at the time he or she lived with you;
had a net income in 2010 (line 236 of his or her return, or the amount that it would be if he or she filed a return) of less than $18,645; and
been dependent on you due to mental or physical impairment or, if he or she is your or your spouse's or common-law partner's parent or grandparent, born in 1945 or earlier.



Thanks for the reply.
My doubt was about the age which is < 65 yrs.

1. Is it mandatory to file their tax returns as they had no income? I know they can have some tax benefits like GST claims, but I would rather ignore to claim that?
2. Do I have to file their tax returns or they will do it themselves?







It is not mandatory for them to file the tax returns as they have NIL income but sure they do get some benefits and if you do not need them, still file the return and DONATE that money to your favorite charity, either here or in India.

You can file return on their behalf, if they authorize you.



Thanks for the valuable suggestions





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