Section 118

Subsection 118(1) - Personal credits

Paragraph 118(1)(a) - Married or common-law partnership status

Cases

The Queen v. Robichaud, 83 DTC 5265, [1983] CTC 195 (FCTD)

A taxpayer who married on December 23 and whose husband's income for the balance of the year thus was miniscule could not claim her husband as a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) 14

See Also

Reid v. MNR, 91 DTC 1443, [1991] 2 CTC 2651, [1991] 2 CTC 2697, [1991] 2 CTC 2715 (TCC)

A man who had been the common law spouse of the taxpayer for thirty years was not a "spouse" for purposes of the Income Tax Act.

Administrative Policy

23 December 2014 External T.I. 2014-0543311E5 - Reporting marital status

A married couple no longer reside together because one spouse has advanced Alzheimer's and has been moved to a nursing home indefinitely. The...

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27 July 2010 External T.I. 2010-0364841E5 F - Questions relatives à une séparation

The correspondent and the correspondent’s wife separated (with a divorce decree to be issued shortly, but continued to live under the same roof...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 63 - Subsection 63(3) - Supporting Person no supporting person where two spouses lived separate and apart under same roof 154
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) two separated spouses living under the same roof required to agree on which one claims the s. 118(1)(b) credit 155

Paragraph 118(1)(b) - Wholly dependent person

Cases

Pilette v. Canada, 2010 DTC 5075 [at 6808], 2009 FCA 367

The legislative choice reflected in s. 118(1)(b)(ii)(D), that no credit would be provided to young adults over the age of 18 who remained...

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The Queen v. Mercier, 97 DTC 5081 (FCTD)

The 18-year age limit in s. 118(1)(b)(ii)(D) was not contrary to s. 15(1) of the Charter (and would have been justified under s. 1 of the Charter...

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See Also

Severinov v. The Queen, 2013 DTC 1230 [at 1260], 2013 TCC 292 (Informal Procedure)

The taxpayer appealed the denial of Canada child tax benefits and child tax credits. In respect of the child tax credits, the Minister's Reply...

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Abiola v. The Queen, 2013 DTC 1141 [at 754], 2013 TCC 115 (Informal Procedure)

The taxpayer paid child support, pursuant to a court order, in respect of her three children who lived with her spouse. The taxpayer's daughter...

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Bruno v. The Queen, 2007 DTC 1172, 2007 TCC 360 (Informal Procedure)

The taxpayer, who was separated from his former spouse, resided with his son in a self-contained, one-bedroom suite in the matrimonial home, but...

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Mercier v. MNR, 92 DTC 1693, [1992] 1 CTC 2506 (TCC)

Lamarre Proulx J. found that s. 118(1)(b)(ii) of the Act should be considered to be of no effect in light of s. 15 of the Charter and that it...

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Administrative Policy

6 August 2019 Internal T.I. 2018-0785701I7 - Eligible dependant credit

Taxpayer A and B, who are separated and living apart in separate homes, received a court order stating that Taxpayer A has sole custody of their...

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29 January 2019 External T.I. 2018-0780481E5 F - Tenir un établissement domestique autonome

CRA stated for purposes of ss. 6(6)(a)(i) and 118(1)(b), its general position was:

that an individual maintains a self-contained domestic...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(6) - Paragraph 6(6)(a) - Subparagraph 6(6)(a)(i) can qualify as self-contained domestic establishment if no ownership but expense responsibility 145

2 March 2015 External T.I. 2014-0527281E5 F - Tenir un établissement domestique autonome

In affirming the position taken in 2013-0484781E5 F, CRA stated:

[I]f an individual is not the owner or the tenant of a self-contained domestic...

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Words and Phrases
maintain

11 June 2013 External T.I. 2013-0484781E5 F - Établissement domestique autonome

In finding that a single mother with minor children who lives with her parents and contributes to some expenses incurred by her parents in...

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29 April 2011 External T.I. 2010-0382221E5 F - Crédit personne à charge et montant pour enfant

Situation 1

Mr. A and Ms. B, who live in separate, self-contained domestic establishments due to the breakdown of their marriage, have shared...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b.1) foster child could qualify as “child” of individual having charge of foster family, but not as wholly dependent 144

27 July 2010 External T.I. 2010-0364841E5 F - Questions relatives à une séparation

After indicating that it appeared that the correspondent was living separate and apart from the correspondent’s spouse notwithstanding their...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 63 - Subsection 63(3) - Supporting Person no supporting person where two spouses lived separate and apart under same roof 154
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(a) joint payment of expenses incurred under the same roof did not preclud two separated spouses living “separate and apart” 179

1 December 2009 Internal T.I. 2009-0344151I7 F - Alinéa 118(1)b) - Crédit pour personne à charge

Ms. X, who has been living apart from Mr. Y, has had full custody of their minor child, but has also moved in with Mr. Z, who became her...

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13 July 2009 Internal T.I. 2009-0328161I7 F - Personne entièrement à charge non-résidente

Can an individual claim this credit in respect of a dependant - in this case, a child of the individual - where the dependant is not a resident of...

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18 March 2009 External T.I. 2009-0309211E5 F - Crédits d'impôt personnels

A couple with two children separated on February 1, 2008. Before the separation, Madame’s income was $2,000. Commencing November 1, 2008,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.92 ordering of tuition, then medical expense, then student loan credits 69
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(d) satisfaction of clothing needs of institutionalized adult child would be sufficient to engage the credit 157

11 April 2008 Internal T.I. 2007-0239621I7 F - Crédit d'impôt pour pers. entièrement à charge

Can a person with a dependent child who has been placed with her by a youth centre, and was no longer receiving remuneration for the child’s...

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25 February 2008 Internal T.I. 2007-0230421I7 F - Pension alimentaire et entente rétroactive

The taxpayer is a party to a 1994 Ontario divorce court judgment stated that the two children would be primarily in the custody of the mother and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(b) retroactive agreement re child support would not be accepted by CRA 310

4 January 2000 Ministerial Letter 9933028 - EQUIVALENT-TO-SPOUSE TAX CREDIT

Discussion of the meaning of the phrase "living separate and apart".

28 May 1991 Memorandum (Tax Window, No. 3, p. 29, ¶1266)

Two individuals, each having a child and maintaining a separate home, who are entitled to the equivalent-to-married claim under s. 118(1)(b) at...

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Subparagraph 118(1)(b)(ii)

Administrative Policy

11 July 2013 External T.I. 2013-0490591E5 F - Montant pour une personne à charge

Mr. and Ms., who had two children under 18, lived in a common-law relationship for three years and the separated, with Ms. obtaining, by written...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner can be in a conjugal relationship even if live in the same home for only half of each year 148
Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) sole fact of a non-resident having a conjugal relationship with a Canadian resident does not render him a resident 171

2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.6, 2016-0674861C6 F - Wholly dependent person tax credit

Where a parent only has access or visitation rights with his or her child for every other weekend, can the CRA confirm that the parent in question...

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Clause 118(1)(b)(ii)(B)

Administrative Policy

27 March 2008 External T.I. 2006-0197601E5 F - Crédit équivalent pour personne à charge

To claim the wholly dependent person credit for a minor child, must the parent have legal custody of the child in order for the child to be...

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Subparagraph 118(1)(b)(ii)

Paragraph 118(1)(b.1)

Administrative Policy

13 July 2016 External T.I. 2013-0513701E5 F - Montant pour enfant

Mr. A and Ms. B were ex-spouses living in separate self-contained domestic establishments by reason of the breakdown of their marriage, they had...

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18 October 2012 External T.I. 2012-0452131E5 F - CIE, établissement domestique autonome

Is it possible for spouses living in the same, self-contained domestic establishment to apply for the child tax credit (CTC) under s....

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26 July 2012 External T.I. 2012-0440261E5 F - Crédit d'impôt pour enfants

A child would have attained the age of 18 in a year, but died before that date. In finding that the credit was not available, CRA noted that the...

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29 April 2011 External T.I. 2010-0382221E5 F - Crédit personne à charge et montant pour enfant

Where a foster family cares for a child, you wish to know if the person in charge of the foster family can claim the child amount provided for in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) payment of support for one month before obtaining custody ousted credit 192

26 November 2009 Internal T.I. 2009-0327551I7 F - Montant pour enfant

First Situation

Ms. A and Mr. B, have been separated since 2003 (without other spouses) and have joint custody of their two children, with no...

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27 March 2009 Internal T.I. 2009-0308111I7 F - Crédit d'impôt pour enfant

Where a dependent child dies in the year, can the child be considered to have resided "throughout the taxation year" with the parent under s....

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8 January 2009 Internal T.I. 2008-0299371I7 F - Montant pour enfant

Spouses live separate and apart and have joint custody of their two children. Is Ms. B, who is in a common-law relationship with a new spouse,...

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25 April 2008 External T.I. 2008-0274401E5 F - Crédit d'impôt pour enfant

Regarding a query as to the meaning of "ordinarily reside" and "throughout the … year" in s. 118(1)(b.1), CRA stated:

Thomson … held that a...

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Paragraph 118(1)(c.1)

Administrative Policy

30 May 2013 External T.I. 2013-0479671E5 F - Montant pour aidants naturels

For a few months, the taxpayer spent significant time with her ex-spouse (and father of her child) who since died from cancer. She helped him at...

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Paragraph 118(1)(d) - Dependants

Cases

Adams v. The Queen, 85 DTC 5528, [1985] 2 CTC 317 (FCTD)

A fetus is not a child for the purposes of s. 109(1)(d) and is not wholly dependent for support upon the husband of the mother.

Administrative Policy

25 May 2012 Ministerial Correspondence 2012-0444181M4 - Tuition tax credit - exam fees

If the fee paid by an individual for an examination taken in the year, such as, for Part I and Part II of the Medical Council of Canada Qualifying...

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18 March 2009 External T.I. 2009-0309211E5 F - Crédits d'impôt personnels

Can the unused portion of the disability tax credit of a 20-year-old child placed in an institution with a severe disability be transferred to his...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.92 ordering of tuition, then medical expense, then student loan credits 69
Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) parent separated for part of year could claim the wholly dependent person credit only if he did not deduct support 238

Subparagraph 118(1)(d)(ii)

See Also

The Queen v. Diaz, 81 DTC 5112, [1981] CTC 138 (FCTD)

"[T]he word 'infirmity' implies more than mere retirement age ... [and] must be taken in its general sense, i.e., the state of being of poor or...

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Words and Phrases
infirmity

Subsection 118(4) - Limitations re s. (1)

Paragraph 118(4)(a.1)

See Also

Ullah v. The Queen, 2014 DTC 1022 [at 2632], 2013 TCC 387 (Informal Procedure)

Paris J agreed with the taxpayer that, although the taxpayer's father had claimed spousal tax credits in respect of her mother, she was entitled...

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Paragraph 118(4)(b)

Administrative Policy

6 April 2010 Internal T.I. 2009-0343091I7 F - Montant pour enfant

Mr. A and Ms. B, had been living in separate self-contained domestic establishments following a breakdown in their relationship, had joint custody...

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Subsection 118(5) - Support

Cases

Nelson v. Canada (Attorney General), 2000 DTC 6556 (FCA)

The taxpayer was denied a credit under s. 118(5) in respect of child support paid by him to his ex-wife for their two children given that he...

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See Also

Cook v. The Queen, 2017 TCC 188 (Informal Procedure)

In 2010 the Alberta Court of Queen’s Bench issued an order, granting the taxpayer and her ex-wife joint custody of their child, with the...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Effective Date tax effect given to a retroactive court order 154

Ochitwa v. The Queen, 2014 DTC 1195 [at 3740], 2014 TCC 263 (Informal Procedure)

The taxpayer made support payments, in respect of their two children, to his spouse based on an offset of their two incomes (i.e., on the $40,000...

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Giroux v. The Queen, 2012 DTC 1286 [at 3883], 2012 TCC 284 (Informal Procedure)

The taxpayer assumed sole custody of his son on 1 November 2008, and claimed credits under s. 118(1)(b). The Minister denied the taxpayer's...

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Administrative Policy

8 May 2014 External T.I. 2014-0516711E5 F - Accord écrit et Pension alimentaire

Monsieur must pay support to Madame for her two minor children under an order. As a result of changed circumstances, the parties signed an...

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Subsection 118(5.1) - Where subsection (5) does not apply

See Also

Cunningham v. The Queen, 2012 DTC 1223 [at 3622], 2012 TCC 279 (Informal Procedure)

Boyle J. dismissed the taxpayer's position that he and his former spouse could make support payments to each other under their separation...

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Subsection 118(5.2)

Administrative Policy

19 November 2009 External T.I. 2009-0312021E5 F - Prime d'assurance et donation

Mr. A is the policyholder of a universal life insurance policy on his life that includes a return of premiums on death (ROPD) rider, which...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(35) premiums paid on life insurance policy held by charity are not gift to the extent they relate to a premium refund to be received by estate 252

Subsection 118(6) - Definition of dependant

See Also

Therrien v. Agence du revenu du Québec, 2019 QCCQ 28

When the handicapped daughter (“V”) of the taxpayer’s ex-common law partner was 22, she started living with the taxpayer. Whether the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 252 - Subsection 252(1) - Paragraph 252(1)(b) handicapped adult child satisfied test even though didn't move in until age 22 387

Savoy v. The Queen, 2011 DTC 1086 [at 479], 2011 TCC 73 (Informal Procedure)

In determining that the taxpayer's quadriplegic brother was the taxpayer's dependant, Hogan J. stated (para. 3):

The renovations were done so that...

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Administrative Policy

24 June 2005 External T.I. 2005-0126251E5 F - Montants alloués pour personne handicapée

Could the taxpayer claim the wholly-dependent person tax credit for disabled dependants over 18 years of age under s. 118(1)(d) for her daughter...

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Words and Phrases
dependent
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.3 - Subsection 118.3(2) parent could not take a transfer of the unused credit because she was no longer financially supporting her impaired daughter 199

Subsection 118(7) - Definitions

See Also

Létourneau v. The Queen, 2010 DTC 1098 [at 3020], 2009 TCC 614 (Informal Procedure)

Upon his retirement as partner in a professional accounting firm, the taxpayer began to receive an annual allowance of $41,607 subject to an...

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Morin v. The Queen, 92 DTC 1069, [1991] 2 CTC 2645 (TCC)

Periodic amounts received by the taxpayer, who was permanently disabled, from Sun Life under the Consumers' Gas sickness, disability and...

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Pension Income

See Also

Taylor v. The Queen, 2014 DTC 1108 [at 3229], 2014 TCC 102 (Informal Procedure)

The taxpayer had discretion as to when and in what amount to withdraw from her RRSP. Woods J found that the taxpayer's decision to make annual...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Annuity periodic discretionary withdrawals ≠ periodic amount 59

Cantin v. The Queen, 2014 DTC 1076 [at 3061], 2014 TCC 20 (Informal Procedure)

The taxpayer, an electrical engineer at Ontario Hydro, suffered chronic depression and became eligible under for long-term wage-loss benefits...

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Administrative Policy

6 May 2014 May CALU Roundtable, 2014-0523311C6 - CALU Pension splitting - question 4

Would "qualified pension income" include payments in respect of a life annuity out of a locked-in RIF (LRIF) or Life Income Fund (LIF) where the...

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25 June 2012 External T.I. 2011-0398691E5 - Conversion of U.S. Traditional IRA into Roth IRA

CRA stated that, where a Canadian-resident individual converts a traditional US Individual Retirement Account ("IRA") to a Roth IRA, the amount of...

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4 January 1993 Memorandum 923244 (November 1993 Access Letter, p.505, ¶C117-207)

Re distinction between annuity income and gain from disposition of an annuity contract.

Paragraph (a)

Subparagraph (a)(i)

Administrative Policy

14 May 2019 CLHIA Roundtable Q. 14, 2019-0799191C6 - CLHIA Q. 14 - IPPs and pension splitting

The definition of “permissible distributions” in Reg. 8502(d) seems to provide that the portion of the individual pension plan minimum amount...

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Words and Phrases
annuity
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60.03 - Subsection 60.03(1) - Eligible Pension Income - Paragraph (a) minimum IPP top-up amounts are ineligible 112

Subparagraph (a)(iii)

Administrative Policy

11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 9, 2019-0813281C6 F - Pension splitting - RRIF deemed benefit

Is a “payment received” from a RRIF considered to be a “payment out of or under” a RRIF for purposes of the definition of “pension...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6) s. 166.3(6) language does not go on to deem there to be payment by RRIF issuer 207

Qualified Pension Income

Administrative Policy

4 November 2009 External T.I. 2009-0337451E5 F - Fractionnement de revenu de pension

The "pensioner" (as defined in s. 60.03), aged 64, received an annual life annuity from his registered pension plan ("RPP") and pension payments...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60.03 - Subsection 60.03(1) - Split-Pension Amount RRSP annuity not eligible for splitting 84