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Discussion Starter #1
16 yrs old - still dependent. Made about $300 (at major retailer). Separate Tax return required??? Or is her income added to mine?
Any advantages to going through the hassle for this small amount - which is way under the basic exemption anyway?
Will we/she get hounded over this? I guess CRA has info from the employer's side. Hmm - seems like a waste of time to do anything.

Thanks in advance for any thoughts.

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FWIW i'm using FutureTax.ca again this year.
 

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I don't think a return is required, but I'm not sure of the limit. And your child's income is not added to yours.

I'd suggest filing a return because it will generate RRSP room your child can use when they start having taxable income.
 

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16 yrs old - still dependent. Made about $300 (at major retailer). Separate Tax return required??? Or is her income added to mine?
Any advantages to going through the hassle for this small amount - which is way under the basic exemption anyway?
Will we/she get hounded over this? I guess CRA has info from the employer's side. Hmm - seems like a waste of time to do anything.

Thanks in advance for any thoughts.

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FWIW i'm using FutureTax.ca again this year.
The kid should do his taxes to a) learn about responsibility and b) he can declare for the GST rebate and get a few hundred bucks back ($100?) either way, free money.
 

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There used to be a green form that young, low-income earners could request from their employer so that they would NOT take any tax off. This limit used to be around $6500 but IIRC it was recently increased to about $10K. So if you made $300 or $3000 for the year, sign the form and keep your money!

Good comments here about the benefits of filing a return. It will cost her about $75 at H&R block and she will indeed get GST cheques every quarter IIRC. Might get about $300in GST cheques.

I like herald's advice. 16 years old is an excellent time to start doing taxes for the reasons given. Even if the girl doesn't do the taxes personally, have her take her T4s and other slips to a tax person and go through the motions. I think I started this at around 17 or 18 once I started college.
 

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As a 16 year old still living at home, she is not entitled to the ON Sales Tax Credit or the GST. The ON Sales Tax Credit goes on the parent's return (whether they can use it or not), and she is not entitled to the GST credit until age 19.

If tax was taken off the pay, definitely file to get that tax back. The exemption limit right now is $10,300.

I agree that it is a good time to learn how to file taxes, even if it is a nil return. I wouldn't go to H&R for such a simple return (although I work there); learn how to do it yourself.
 

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If you live in Ontario the Sales Tax Credit can be claimed by the 16 year old (been there done that). Refer here for eligibility:

http://www.rev.gov.on.ca/en/credit/stc/index.html

Another reason to have the child file a return not previously indicated is to build RRSP contribution room for the child. Regardless of whether or not taxes are owing/refund due, the child can build RRSP contribution room on the income for future use.
 

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From the link:
You can claim the sales tax credit if you meet all four of these conditions:

* you lived in Ontario on December 31, 2009; ok

* you were 16 or older on December 31, 2009; ok

* no one else claimed an Ontario sales tax credit for you; which the parents will claim on their returns

* no one you lived with received a Canada Child Tax Benefit payment for you or claimed you as a wholly dependent person; the parents would receive the CTB for the 16 year old if their income allowed, AND would be entitled to the $2000 credit per child which is not income-related

As the 16 year old still lives at home and is wholly dependent still, she is not entitled to the $100 sales tax credit.
 

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Stardancer,

The claiming by the parent of a dependent for purposes of the sales tax credit is optional. On the assumption that the parental income is too high to take advantage of this credit for themselves the child could claim it instead and qualify for the refund on the child's return. This is the point I'm making, there is this option if the family income is too high.

Here is an additional reference on page 117 to support what I'm indicating:

http://www.cga-ontario.org/assets/file/PTP09.pdf
 

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Discussion Starter #9
Thank you all for such informative replies. I had forgotten about mother getting the CTB so it looks like she is out of luck on getting any rebate. Her T4 shows no income tax was deducted - only about $6 for CPP and EI. I'll show her the (printed out) suggestions about gaining RRSP room (along with some gentle urging) - anything to get her reading instead of gaming! And i certainly agree that having to wade through the tax form is a much needed dose of reality.
Thanks again.
 

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Definitely file a return for a kid:
1. RRSP contribution limit
2. Learn about money/taxes

Plus, doing taxes is a whole lot of fun, right?

-Dave
 
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