Under Article 25 of the US-Canada Tax Treaty, am I (as a Canadian resident) allowed to claim my dependent Mother who lives in the States on the Canadian return? She has a small income only from US Social Security and I support her by transferring money to her monthly.
Since I am a dual citizen (US-Canada), I always claim her without question on my US tax return but so far have assumed that CCRA did not allow me to do so. However, in reading the tax treaty it appears that it is allowed (due to the non-discrimination clause). Am I reading this correctly?
US-Canada Tax Treaty
Moderator: Mark T Serbinski CA CPA
That clause does nothing to make your mother a dependant in CRA terms, since I suspect that even if she were living in Canada (not with you) she would not be considered a dependant either. That is the purpose of the clause.
The rules for dependant are quite different in US and Canada, and very few Cdns get to claim their parents as dependants, even when they DO live with them. Under CRA rulesmpossible to have one's parent as a dependant if they do not live with you, regardless if that is in US or Canada.
Ironically, what the non-discrim clause would do, is allow you to continue to claim your mom as a dependant on your 1040 even if she moved to Canada.
<i>nelsona non grata... and non pro</i>
The rules for dependant are quite different in US and Canada, and very few Cdns get to claim their parents as dependants, even when they DO live with them. Under CRA rulesmpossible to have one's parent as a dependant if they do not live with you, regardless if that is in US or Canada.
Ironically, what the non-discrim clause would do, is allow you to continue to claim your mom as a dependant on your 1040 even if she moved to Canada.
<i>nelsona non grata... and non pro</i>
Article 25 - US-CANADA Tax Treaty
I do apologize for not making it clear that my Mother is disabled and residing in the USA (in an assisted living facility), while I am a Canadian residing in Canada who supports her.
I did file the necessary paperwork with the CRA to claim the disability supports benefits on my tax return with the Doctor's certificate from her US doctor -- and filed a statement attached stating that I was making the claim under Article 25 of the tax treaty that provides for non-discrimination with respect to residency.
I have now received a letter from the INTERNATIONAL TAXATION OFFICE of the CRA in Ottawa stating that my application has been approved and that they will automatically revise my 2004 tax return allowing the claim. For 2005, I am filing my tax returns claiming the disability supports deduction (even though my Mum is not resident in Canada) and expect it to be accepted.
I am posting this reply to make it clear what my case was about -- and I do apologize for any confusion if my initial query did not make it clear that she is disabled.
I did file the necessary paperwork with the CRA to claim the disability supports benefits on my tax return with the Doctor's certificate from her US doctor -- and filed a statement attached stating that I was making the claim under Article 25 of the tax treaty that provides for non-discrimination with respect to residency.
I have now received a letter from the INTERNATIONAL TAXATION OFFICE of the CRA in Ottawa stating that my application has been approved and that they will automatically revise my 2004 tax return allowing the claim. For 2005, I am filing my tax returns claiming the disability supports deduction (even though my Mum is not resident in Canada) and expect it to be accepted.
I am posting this reply to make it clear what my case was about -- and I do apologize for any confusion if my initial query did not make it clear that she is disabled.
