# Canada Tax question - My 17 year old son is ruining me! **URL:** \ **Category:** Factual Questions\ **Created:** [March 2, 2018, 1:31am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866 "2018-03-02T01:31:56Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![blood63](https://avatars.discourse-cdn.com/v4/letter/b/97f17d/32.png) [@blood63](https://boards.straightdope.com/u/blood63)\ **Post date:** [March 2, 2018, 1:31am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/1 "2018-03-02T01:31:56Z")
It is tax time and I am using a free program called Simple Tax. It gives me a running total of my return as I enter the data. When I enter my son’s 11,000 dollar income from McDonald’s, my return dropped from $2260 to $60. Can anyone explain how my son’s income affects my taxes? He filled out a separate return. ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [March 2, 2018, 1:42am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/2 "2018-03-02T01:42:58Z")
If he filled out his own return, why did you put his income on yours? ---
**Author:** ![OldGuy](https://avatars.discourse-cdn.com/v4/letter/o/3bc359/32.png) [@OldGuy](https://boards.straightdope.com/u/OldGuy)\ **Post date:** [March 2, 2018, 2:05am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/3 "2018-03-02T02:05:58Z")
This page seems to indicate, your son should be filing his own return and would not owe any tax. It’s old, but I’d think the limit amounts would only have gone up. Why are you putting his income on your taxes? > **[Why All Working Children Should File A Tax Return | 2022 TurboTax® Canada Tips](https://turbotax.intuit.ca/tips/why-all-working-children-should-file-a-tax-return-5112)** > > There are a number of benefits to filing a tax return for a working child in Canada. ---
**Author:** ![Melbourne](https://avatars.discourse-cdn.com/v4/letter/m/b5e925/32.png) [@Melbourne](https://boards.straightdope.com/u/Melbourne)\ **Post date:** [March 2, 2018, 3:19am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/4 "2018-03-02T03:19:00Z")
Does Canada have a deduction/credit for dependents? If he’s earning 11K, he may no longer be a dependent. ---
**Author:** ![RickJay](https://avatars.discourse-cdn.com/v4/letter/r/bb73d2/32.png) [@RickJay](https://boards.straightdope.com/u/RickJay)\ **Post date:** [March 2, 2018, 4:16am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/5 "2018-03-02T04:16:00Z")
Your son’s income does not belong on your tax form. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 2, 2018, 4:37am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/6 "2018-03-02T04:37:58Z")
Yes, why are you entering his income as yours? He should fill out his own tax form. ---
**Author:** ![Crazyhorse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crazyhorse/32/31_2.png) [@Crazyhorse](https://boards.straightdope.com/u/Crazyhorse)\ **Post date:** [March 2, 2018, 5:00am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/7 "2018-03-02T05:00:33Z")
The eligible dependent section on a tax form from Alberta (I just picked a province at random) includes an $11,635 base credit. Below that is a line to enter the dependent’s net income from their return which is deducted from that base amount. [https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5000-s5/5000-s5-17e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5000-s5/5000-s5-17e.pdf) ---
**Author:** ![UDS](https://avatars.discourse-cdn.com/v4/letter/u/ecae2f/32.png) [@UDS](https://boards.straightdope.com/u/UDS)\ **Post date:** [March 2, 2018, 5:32am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/8 "2018-03-02T05:32:33Z")
So Melbourne is correct. OP is probably claiming a deduction for his son as an eligible dependant, but the deduction is reduced by the amount of the eligible dependant’s own earnings. To the extent that he earns his own money, he’s not dependent on the OP. The theory is, OP, that now that your son is earning he should be paying for some of the things that, up to now, you had to pay for. Therefore the rise in your taxes should be set against the fall in your expenditure. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 2, 2018, 5:38am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/9 "2018-03-02T05:38:23Z")
But it should be a wash. If the dependent benefit amount is ~ $11,000, and the son is earning ~ $11,000, it shouldn’t be reducing the OP’s return by almost $2,000. ---
**Author:** ![TruCelt](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/trucelt/32/523_2.png) [@TruCelt](https://boards.straightdope.com/u/TruCelt)\ **Post date:** [March 2, 2018, 5:52am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/10 "2018-03-02T05:52:20Z")
> [@Northern\_Piper](#): > > But it should be a wash. If the dependent benefit amount is ~ $11,000, and the son is earning ~ $11,000, it shouldn’t be reducing the OP’s return by almost $2,000. Actually, it should be having a bigger effect than it is. His tax burden should have gone up by $11,000. I’m guessing that the Canadian Government still allows some amount of deduction to go through. ---
**Author:** ![Crazyhorse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crazyhorse/32/31_2.png) [@Crazyhorse](https://boards.straightdope.com/u/Crazyhorse)\ **Post date:** [March 2, 2018, 6:02am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/11 "2018-03-02T06:02:06Z")
I think his taxable income went up by $11,000, which might work out to owing the $2,000 difference in the refund. With a credit of $11,000, he owed X in tax and had paid X + $2260. Eliminating the credit, he instead owed Y in tax and had paid Y + $60. The variables are because we don’t know overall income, other credits taken, deductions, etc. The $2,000 bill from Canada is the result of all those things being recalculated with the new amount as the starting point. ---
**Author:** ![UDS](https://avatars.discourse-cdn.com/v4/letter/u/ecae2f/32.png) [@UDS](https://boards.straightdope.com/u/UDS)\ **Post date:** [March 2, 2018, 7:07am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/12 "2018-03-02T07:07:36Z")
> [@Northern\_Piper](#): > > But it should be a wash. If the dependent benefit amount is ~ $11,000, and the son is earning ~ $11,000, it shouldn’t be reducing the OP’s return by almost $2,000. It’s reducing the OP’s refund by $2,200, which by an amazing coincidence is 20% of $11,000. This could be explained if (a) the OP gets a deduction against his taxable income for his eligible dependant; but (b) the deduction is reduced by the amount of the ED’s earnings; and (c) the OP’s marginal tax rate is 20%. In that scenario, the OP’s tax deduction is reduced by $11k; therefore his taxable income is $11k higher; therefore his tax bill is ($11k x 20% =) =$2.2k higher, therefore his tax refund is $2.2k lower. ---
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [March 2, 2018, 10:45am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/13 "2018-03-02T10:45:01Z")
Which should give a hint to the OP about how much rent he should be charging his son. ---
**Author:** ![blood63](https://avatars.discourse-cdn.com/v4/letter/b/97f17d/32.png) [@blood63](https://boards.straightdope.com/u/blood63)\ **Post date:** [March 2, 2018, 4:43pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/14 "2018-03-02T16:43:52Z")
> [@running\_coach](#): > > If he filled out his own return, why did you put his income on yours? If I list him as a dependent, the program asks for this information. He is under 18 and is my son, so he is dependent on me. ---
**Author:** ![blood63](https://avatars.discourse-cdn.com/v4/letter/b/97f17d/32.png) [@blood63](https://boards.straightdope.com/u/blood63)\ **Post date:** [March 2, 2018, 4:48pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/15 "2018-03-02T16:48:22Z")
> [@RickJay](#): > > Your son’s income does not belong on your tax form. Tell that to Simple Tax. When I list him as a dependent, a window opens that asks for his net income from his tax return. I don’t think I can ignore that. ---
**Author:** ![jz78817](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jz78817/32/1028_2.png) [@jz78817](https://boards.straightdope.com/u/jz78817)\ **Post date:** [March 2, 2018, 5:17pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/16 "2018-03-02T17:17:01Z")
> [@Crazyhorse](#): > > The eligible dependent section on a tax form from Alberta (I just picked a province at random) includes an $11,635 base credit. Below that is a line to enter the dependent’s net income from their return which is deducted from that base amount. > > [https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5000-s5/5000-s5-17e.pdf](https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5000-s5/5000-s5-17e.pdf) This looks like the answer. Money he’s making for himself is money OP isn’t spending on him, therefore OP can’t claim as large of a dependent care credit. Doesn’t look like there’s any way around that; if you claim the credit you have to enter his/her income. ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [March 3, 2018, 1:09am UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/17 "2018-03-03T01:09:15Z")
> [@blood63](#): > > Tell that to Simple Tax. When I list him as a dependent, a window opens that asks for his net income from his tax return. I don’t think I can ignore that. In your original post , it appeared that you were entering your son’s income as “income” on your tax return and therefore paying taxes on that income. It seems that that is not the case. Rather, you are entering your son’s income on a worksheet or schedule that is used to calculate the amount you can claim as a credit for your son. I imagine when your son filed his own return, he didn’t pay any taxes as his income was below the basic personal amount of $11,635. The taxman is not going to allow both you and your son to each claim an $11,635 credit for him, and therefore your credit is going to be limited to whatever he didn’t use on his own return (so that if he earned exactly $11K your credit would be limited to $635). But your software couldn’t calculate that you wouldn’t get the full credit until you entered his income which is why your total changed. (after all, lots of dependents don’t have any income) ---
**Author:** ![blood63](https://avatars.discourse-cdn.com/v4/letter/b/97f17d/32.png) [@blood63](https://boards.straightdope.com/u/blood63)\ **Post date:** [March 6, 2018, 8:00pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/18 "2018-03-06T20:00:06Z")
> [@doreen](#): > > In your original post , it appeared that you were entering your son’s income as “income” on your tax return and therefore paying taxes on that income. It seems that that is not the case. Rather, you are entering your son’s income on a worksheet or schedule that is used to calculate the amount you can claim as a credit for your son. > > I imagine when your son filed his own return, he didn’t pay any taxes as his income was below the basic personal amount of $11,635. The taxman is not going to allow both you and your son to each claim an $11,635 credit for him, and therefore your credit is going to be limited to whatever he didn’t use on his own return (so that if he earned exactly $11K your credit would be limited to $635). But your software couldn’t calculate that you wouldn’t get the full credit until you entered his income which is why your total changed. (after all, lots of dependents don’t have any income) You are right, my son did not have to pay any tax. Since I share custody with him, is his mother not responsible for the loss of this credit as well? I do pay child support if that is important. ---
**Author:** ![doreen](https://avatars.discourse-cdn.com/v4/letter/d/858c86/32.png) [@doreen](https://boards.straightdope.com/u/doreen)\ **Post date:** [March 6, 2018, 8:30pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/19 "2018-03-06T20:30:55Z")
> [@blood63](#): > > You are right, my son did not have to pay any tax. > Since I share custody with him, is his mother not responsible for the loss of this credit as well? I do pay child support if that is important. I am neither Canadian nor a tax professional - but it seems to me that the idea is that there is a total credit of $11365 per person and according to [this](https://turbotax.intuit.ca/tips/claiming-the-eligible-dependant-credit-5107) even if your son had no income at all, only one person could have taken the credit - either you or his mother. ---
**Author:** ![Folly](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/folly/32/3219_2.png) [@Folly](https://boards.straightdope.com/u/Folly)\ **Post date:** [March 6, 2018, 8:43pm UTC](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866/20 "2018-03-06T20:43:06Z")
> [@blood63](#): > > You are right, my son did not have to pay any tax. > Since I share custody with him, is his mother not responsible for the loss of this credit as well? I do pay child support if that is important. Were no payroll taxes taken out of his paycheck before he received it? [Next page](https://boards.straightdope.com/t/canada-tax-question-my-17-year-old-son-is-ruining-me/809866.md?page=2)