Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Can an individual make a claim for the dependant tax credit under 118(1)B(d) of the Income Tax Act for a child of the individual where the child is married, but otherwise meets the criteria?
Position: Question of Fact.
Reasons: Paragraph 118(1)(d) of the Act requires that the dependant have attained the age of 18 years before the end of the year and was dependent on the individual because of mental or physical infirmity. Subsection 118(6) of the Act defines a dependant to be a person who at any time in the year is dependent on the individual for support and includes a child of the individual.
2004-009274
XXXXXXXXXX Luisa A. Majerus, C.A.
(613) 957-2138
November 2, 2004
Dear XXXXXXXXXX:
Dependant Tax Credit
We are writing in response to your letter dated August 24, 2004, requesting our views on whether or not you are entitled to make a claim for the dependant tax credit for your daughter under paragraph 118(1)(d) of the Income Tax Act (the "Act"). You have provided the following information: your daughter, who is over the age of 18, has a mental infirmity, receives a disability pension, is married to a disabled person and is dependent on you for her needs and care.
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. However, we offer the following general comments.
Paragraph 118(1)(d) provides that an individual may claim a dependant tax credit for each dependant who was 18 years of age or over before the end of the year and dependent on the individual because of mental or physical infirmity. For this purpose, subsection 118(6) of the Act defines a dependant to include a child. As noted in paragraph 23 of Interpretation Bulletin IT-513R - Personal Tax Credits, it is not necessary that the dependant live in the same residence as the individual for the purposes of this credit. Paragraph 25 of the bulletin explains that a person qualifies as a "dependant" of an individual for a taxation year if the person is dependent on the individual for support at any time in the year and is a child of the individual. A copy of IT-513R can be found on our website at http://www.cra-arc.gc.ca/menu/APAP-e.html.
Whether or not a person is dependent upon another is a question of fact to be determined in each case. Consideration should be given to the availability and quantum of support provided. In general terms, support involves the provision of the basic necessities of life such as food, shelter and clothing. Support is given voluntarily, but includes support under a legal commitment. If your child is in receipt of social assistance or any other type of support, you must be able to show that the other assistance is insufficient to fully meet your child's basic needs and that she had to rely on the support you provided in order for you to claim the dependant tax credit. Accordingly, since we do not have all of the facts, we are unable to definitely conclude whether you will be able to claim the dependant tax credit. If you require further assistance, please contact the Client Services Division of your local tax services office.
We trust our comments will be of assistance to you.
Yours truly,
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Planning Branch
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