Income Tax 2014 questions and discussion

[scbpooh]

Ill start this years thread

So i have a few questions. My 16 yr old is still in high school but has a job. She just started in early December. Does she still file income tax? How do i go about it? We use quicktax so i know I will have to get her to phone Service Canada to get an account set up so i can net file for her, but does she do her own return or do i tie it into ours some how? I dont work so mine is really easy to do yearly. Hubby only has 1 job so his is also really easy.

Ive looked online and read that some say, walking her through how to do her own will show her for the future, also some say if its under a certain amount for us to claim, but we have nothing to do with her income. Also where we rent, our yearly lease amount is based on the household income so should I be letting our housing ppl know shes working? Kinda sucks though because i dont want them basing our rent on the extra money in the house that is "her" money.

I really dont know what to do... Can some one answer my questions and help me out please!

[lizzie bargain]

I don't think she is obliged to file unless she is expecting a tax refund-then it would be in her best interest if she is due money back and she would start to acquire RRSP room for the future on earned income. Perhaps someone more knowledgeable than me will weigh in and and be able to advise you on all your questions. I have a 14 year old who worked 2 weeks last summer-as she didn't have any tax deducted she has nothing to get back. I believe if I were a single parent ( I am not) and claiming a deduction for her in place of a spouse then I would have to deduct her income from the deduction I think. I think at their young ages they cannot get the GST tax credit themselves but once they are turning 18 they need to file to qualify for that.

[rock_climberjoe]

Personally i would go through the motions of getting your daughter to do up her own taxes, even if she doesnt end up filing. i know for me, my parents got me to do my taxes when i was just starting out and had a basic return and it helped me understand what i needed to do.

[MrsSunshine]

I'm not sure if the law states 18 and over or just working. might be worth it for her in the end to file anyway.

[scbpooh]

So basically I should just get her to file completely separate from mine and hubbys?

[MrsSunshine]

thats what we did with our oldest. he wasn't even working. but because he had turned 18 he has to by law.

[Natalka]

Yes, get her filing (you'll do it, lol) - and yes, she's separate from parents.
Only time that might change in the future is when she's going to post-secondary and you can use some credits (though we never did, just left them all with son).

At 19, she can apply for the GST credit.
Also, filing now will ensure she's on the voting roster when she's 18.

[Natalka]

came across this about teens and taxes

http://www.theglobeandmail.com/life/...article623078/

[tinambulance]

With respect to having to claim your child's income as part of household income for rental purposes, if you rent from Sask. Housing, I believe you do not have to claim if your child is under 25 and going to school.
And yes,you should file an income tax return for your kids so they can get any taxes back that they paid and any overpayments of CPP and EI.

[Ciel]

http://www.socialservices.gov.sk.ca/H18changes.pdf
Best to contact your housing authority about the household income situation.

Tax filing for daughter-only thing she might get back since her income is low for 2013 is any income tax paid from Dec. wages. She's underage for CPP deductions. And if she did not get any income tax taken off, she should see whoever at work is responsible for setting up her payroll record and ensure that SK is the province on her record (no blank field or two jurisdictions showing-had the latter happen to me and in the spring had a tax bill after notice of assessment arrived-not fun).

Your daughter's income is unlikely to impact any tax credits you receive on her behalf for her. However in 2014, you might look ahead and guess what her expected income might be for 2014-I'm assuming a high enough dependant child's income could reduce a tax credit claimed by parents. Just something to consider for the following tax year.

[Ciel]

In case anyone else is also waiting for the paper tax guides/returns at their local post offices, I learned that next week the items will be appearing.

[ahatt]

If it's her first tax return they don't allow you to net file, you will have to send in paper forms. I definitely would teach her how to do it even if she doesn't have any income for 2013, at least she would be prepared for next year. I started filing my taxes when I was 16, it's a good learning experience.