Tax Return Questions

[love0715]

HI

Q1 My wife and I would like to add our child's name to our joint account. When filing for tax at year end, can we report T5 under our child to minimize the tax? Or the primary account holder has to report the T5?

Q2 For people who have children, did you claim the "Non-refundable tax credit" (see links below)?

I had a baby in Feb 2008. Is it too late to complete TD1 form for this year etc? (i haven't filed my tax return yet)
http://www.taxtips.ca/filing/childamounttaxcredit.htm
http://www.taxtips.ca/personaltax/employees/td1forms.htm
Thanks!

[Germack]

HI

Q1 My wife and I would like to add our child's name to our joint account. When filing for tax at year end, can we report T5 under our child to minimize the tax? Or the primary account holder has to report the T5?

Q2 did anyone (who has children) claim the "Non-refundable tax credit" ?
see the same section on this webspage
http://www.hrblock.ca/your_life/starting_family.asp

Thanks!

Q1) No you cannot. The person who contributed the funds has to claim the interest on their taxes.

[Electricute]

HI

Q1 My wife and I would like to add our child's name to our joint account. When filing for tax at year end, can we report T5 under our child to minimize the tax? Or the primary account holder has to report the T5?

Q2 For people who have children, did you claim the "Non-refundable tax credit" (see links below)?

I had a baby in Feb 2008. Is it too late to complete TD1 form for this year etc? (i haven't filed my tax return yet)
http://www.taxtips.ca/filing/childamounttaxcredit.htm
http://www.taxtips.ca/personaltax/employees/td1forms.htm
Thanks!

1) no
2) you can claim full amount for eligible dependant in the year of birth/death. If you have a spouse you cannot claim for line 306 (amount for eligible dependant) but you can claim line 367 amount for children 18 or younger. Its no longer $2000 per child, went up its like $2037 or something like that

[TopTaxGuy]

Don't add the kids to the account as joint owners. By doing so they are full and equal and unrestricted access to the funds. If they are young, this does not matter much but once they are teens and if they learn they are joint owners, the could withdraw every single cent in the ac**** and there is notiing you can do.

Once they are adults, if they get divorced or go bankrupt, anything that his in joint ownership will be subject to the divorce or bankruptcy. Assume you have you adult child on your brokerage account and its worth $100,000. The child gets divorced and the $100,000 forms part of the divorce and will be subject to division and will end up in the hands of your childs ex.

Joint ownership is only suggested for married persons and only for estate planning. If you have any other reason to make something joint ownership, see a lawyer!