Tax submission for 16 Year Old Student Income about $800/-

[champlinD]

16 Years Old works at McDonald every Sunday. He earned about $800 last year.
How can his Tax be submitted along with his mothers Taxes. This is his first Tax year. I noticed in StudioTax dependent Child has net income TAB.

Any info on how his tax could be submitted?

[xxmike83xx]

file a separate income tax for your child and he or she will most likely receive money back

[pitz]

The kid should file his own tax return.

Any taxes and/or EI premiums deducted should be refunded.

Roughly $140 of RRSP contribution room created.

[ghostryder]

The kid should file his own tax return.

Any taxes and/or EI premiums deducted should be refunded.

Roughly $140 of RRSP contribution room created.

Sorry, but EI premiums must be paid no matter how old you are.

CPP premiums are not collected until you are 18.

[pitz]

Sorry, but EI premiums must be paid no matter how old you are.


Actually, under a certain income threshold, and you get a refund of EI premiums paid on taxes.

[ghostryder]

Actually, under a certain income threshold, and you get a refund of EI premiums paid on taxes.

Maybe you could enlighten me with more info. IFAIK as long as the earnings are "insurable" you must pay EI.

Since EI premiums are a Non-Refundable Tax Credit they shouldn't generate a refund.

[CSK'sMom]

Yes, he needs to file his own, seperate tax return. He can still be claimed as a dependent on the parents tax return. He needs to file for a couple of reasons. It will begin to calculate RRSP contribution room and he may indeed have a refund coming if he paid any tax. Our 16 yr old filed last year, made his first RRSP contribution this year and is getting a hefty refund as well. :)

[dutchca]

Maybe you could enlighten me with more info. IFAIK as long as the earnings are "insurable" you must pay EI.

Since EI premiums are a Non-Refundable Tax Credit they shouldn't generate a refund.

Yes they are a non-refundable tax credit, what Pitz is referring to is an EI over-payment - L450 of the T1. Basicaly if you make less than $2000 for EI and $3500 for CPP, you should get back your premuims paid. Since the kid only made $800 if he paid EI premiums he would get them refunded.

I agree with the above - file a separate tax return. RRSP contribution room has a huge value later in life. He may also get $100 for the Ontario sales tax credit - not sure if there are restrictions on that one or not.

[champlinD]

Thanks for the replies. more info always welcome.

He has very small deduction for EI premiums Line 18 T4 slip.

His mother used to claim Ontario Tax credit ($100). May be this should not be claimed on her form now? Is it $50 or $100? $50 for dependent child under 16?
Since it his first time NETFILE is out of question I guess. So I have to find someone like SoftronTax.

EDIT:Ontario Sales Tax Credit Form ON479

[CSK'sMom]

Nope, he can't claim the Ontario Sales Tax Credit is the following is the Op's case...

You cannot claim this credit if either of the following conditions apply:

on December 31, 2007, you were under 19 and you lived with someone who received Canada Child Tax Benefit payments for you in 2007;