US Citizen, working in Canada, claiming dependent

US_Canada · Post by **US_Canada** » Wed Jan 30, 2008 3:15 pm

Hi,

I'm a US citizen working in Canada. My brother who is a US citizen goes to school in the US and I paid his rent in 2007 (around USD 11,000).

Can I claim him as a dependent and if so, what kind of forms would I be required to fill. Also, what kind of supporting documentation would be required?

Thanks.

nelsona · Post by **nelsona** » Wed Jan 30, 2008 3:25 pm

I'll assume you want to clim him as a dependant on your Cdn tax return, since it is of little value to claim him on your US one.

As a US citizen, he can be climed if you and he meets all the same criteria that your 'Cdn brother' would have to meet.

So he would have to be under 18 or disabled.

So, no.

nelsona · Post by **nelsona** » Wed Jan 30, 2008 3:34 pm

... and he would have to normally live with you when not in school.

US_Canada · Post by **US_Canada** » Wed Jan 30, 2008 4:00 pm

[quote="nelsona"]... and he would have to normally live with you when not in school.[/quote]

Correct - I'd want to claim him on the Canadian return.

Regarding the age: I believe the IRS considers a full time student under 24 as a dependent. Is that immaterial in Canada under the Tax Treaty provisions?

nelsona · Post by **nelsona** » Wed Jan 30, 2008 4:17 pm

Yes, it is immaterial.

Most Cdns don't even get there own 2 year olds as dependants, so I wouldn't sweat this.

Your a good brother though.

US_Canada · Post by **US_Canada** » Wed Jan 30, 2008 4:41 pm

[quote="nelsona"]Yes, it is immaterial.

Most Cdns don't even get there own 2 year olds as dependants, so I wouldn't sweat this.

Your a good brother though.[/quote]LOL! I'll take that consolation to the bank. ;-)

What does this text from the Treaty imply?

[quote]3. In determining the taxable income of an individual who is a resident of a Contracting State there shall be allowed as a deduction in respect of any other person who is a resident of the other Contracting State and who is dependent on the individual for support the amount that would be so allowed if that other person were a resident of the first-mentioned State.[/quote]

http://www.intltaxlaw.com/treaties/cana ... icle%20XXV

nelsona · Post by **nelsona** » Wed Jan 30, 2008 5:31 pm

Its like I said in my first answer. If, under Cdn rules, your brother was eligible to be your dependent if he was living in moose jaw, he would be if he were in the US.

He doesn't, so he isn't.

US_Canada · Post by **US_Canada** » Tue Feb 05, 2008 11:42 am

[quote="nelsona"]Yes, it is immaterial.

Most Cdns don't even get there own 2 year olds as dependants, so I wouldn't sweat this.

Your a good brother though.[/quote]

So other than RRSPs, there are no deductions available for folks on normal employment income? Specifically, this deduction isn't available to me (although it's a valid deduction in the US) in Canada. Neither is student loan interest paid in the US.

Thanks for your help.