Canadian Income tax....Will my 16 year old daughter have to fill out her own form?

Question

Or do I just claim her earnnings in the part where I claim her as a dependent. She made about $1200 last year.

Answer 1

If she lives with you and you are a single parent, you can claim the eligible dependant amount for her. Click here to see if you can claim it:

http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/305/eligible-e.html

However, the amount is reduced by her net income. You do still have to put that amount on your return whether she files or not. She is also required to fill out her own return for any income that she made during the year. If any taxes were withheld, it would actually be to her benefit.

Answer 2

There are advantages for her to fill out her own form. $1200 isn't a lot, but she may be entitled to some credits, and if she has had any deductions withheld, she'll likely get them back if she files. Also, the $1200 is earned income and will give her RRSP room in the future.

You would certainly indicate her earnings on your form if you are claiming her as a dependent, but you aren't paying taxes on those earnings yourself.

Answer 3

She should probably fill out her own form, to put earnings into eligibility for RRSP contribution in future.
As she doesn't have a taxable income , because her deductible is higher than her income, she might be entitled to tax credits and hence a tax refund.

Get some free T-1 special or T-1 General forms at a postal outlet,try figuring both methods, and do what works out best.

It might make a difference from if she is just a child deduction, or an Equivalent to married deduction.

Equivalent to married exemption can be done in single parent families, towards one dependant.