Tax credit for dependant child

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Tax credit for dependant child

Post by mikem » Thu Aug 22, 2013 6:24 pm

Is there any sort of tax credit on a Canadian return for a dependent child when the child lives with two parents? Based on what I'm reading, we can not claim the credit on line 305 since we are a married couple... is that correct? If so, is there any other credit I could claim?? This is our first year filing with a child and it looks like there is no credit simply for having a dependent child... which seems really messed up to me (although I suppose it shouldn't be surprising given the exorbitant taxes charged in Canada in general)

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Aug 23, 2013 10:30 am

There is the CCTB, which is not refunded on your tyax return but is sent as a periodical deposit, and is determined based on your familt income and situation.

Be sure to claim the $1000 from IRS though, by filing a 1040. I assume your child is a US citizen.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Aug 23, 2013 10:34 am

With 1 child, if you and spouse make less than $115K combined, you will get something.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Aug 23, 2013 10:35 am

... from CCTB.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Fri Aug 23, 2013 12:18 pm

Thanks nelsona! I just filed my 1040X to get the $1,000 IRS credit but it looks like everything on the Canadian side is already correct.

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Aug 23, 2013 12:55 pm

Why would your original 1040 not have gotten the credit. I hope you are using software to do your taxes -- in both countries.

If you are eligible for CCTB, you will get some.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Fri Aug 23, 2013 1:13 pm

I was using software. My kid is a Canadian citizen and didn't have an ITIN yet, so I left the SSN field empty, which resulted in the software not including the credit.

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Aug 23, 2013 2:08 pm

Hope you get it, the form kinda stiplutes the kid must either by US citizen or US resident, but IRS has been preety lax at applying that.

Form 8812 is needed in your case, and that form changes slightly every year.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Post Reply