Tax question: dependents

It seems that the max I can claim for dependent is $6803, no matter how many children I have?

Also, it said if I claim line 303 (Spouse) then I cannot claim line 305. This does not really make any sense. So confusing......

so what should I claim if I have

a) a spouse that does not file return (due to low income)
b) 2 children?

If I can really claim just the spuse xor 1 of the child, would it be better if I file 2 seperate return to at least, maximize GST refund? However it seems that I cannot claim line 305 if I live with my spouse? wtf? What should I do to maximize the refund?

I thought if you have a spouse and are living together you can't claim your kids as dependants.

You really have no choice on what dependant claims to make.

As you noted, if you are married or have a common-law partner you are allowed one dependant credit claim, based on the $6,803 amount. There is no claim for dependant children. The other credit referred to on line 305 is only available if you do not have a spouse or partner for income tax purposes. In that case you can claim a credit for an "eligible dependant."

Your wife should file a tax return, even if she has no income, in order to apply for the child tax benefit. It will be based on your combined incomes.

Your GST credit will be based on the number of family members and your combined (husband and wife) incomes. There's not a lot you can do to maximize the GST credit other than making sure your reported income is legitimately minimized and you have indicated all the children under 19.

Originally Posted by taxguru

You really have no choice on what dependant claims to make.

Your wife should file a tax return, even if she has no income, in order to apply for the child tax benefit. It will be based on your combined incomes.

May you tell me what u mean by maximizing child tax benefit?

If I file tax for wife, can I still claim line 305?

Your wife should file a return. Regardless of her income.

File joint returns. You can transfer half of your income to her and thus reduce your overall tax.

woot, now even more confusing. what is a joint return and how do I do that? It sees there is no form for that thing? I checked schedule 2 but doesnt really seems like it

Can anyone just tell me how should i file both return....

I think it's best you spend some time reviewing the tax credits availalbe to families at Canada Revenue Agency website

Originally Posted by elty

woot, now even more confusing. what is a joint return and how do I do that? It sees there is no form for that thing? I checked schedule 2 but doesnt really seems like it

Can anyone just tell me how should i file both return....

There is no joint return in Canada. (That is a US concept) Each person files his/her own return, for the most part, independent of the other person. There are some possibilities for transferring unused credits (as noted on schedule 2) and discretion on what return to claim donations and medical expenses.

However, the transfer of credits would only be possible if your wife were disabled, 65 or older, had pension income or tuition credits. It seems that none of these items apply to your wife so there is nothing unused of hers to transfer to you. Schedule 2 is not likely to apply to your tax return.

You just claim the spousal credit on line 303 and any available medical expenses for the family as well as any charitable donations.

Your wife should file a tax return showing no income, and apply for the Child Tax Benefit as discussed at the CRA website above.

ok I have another question about filing them seperately for ontario tax credit

If I want to file both seperately, in the ontario credit section do I still have to declare wife's income as well as claiming her PST credit? Or each person should claim their respected tax credit

Originally Posted by elty

ok I have another question about filing them seperately for ontario tax credit

If I want to file both seperately, in the ontario credit section do I still have to declare wife's income as well as claiming her PST credit? Or each person should claim their respected tax credit

Yes, you have to add in her income to yours on the schedule that calculates your Ontario Tax Credits. You put it on line [2] of scheduel ON 479.