Claiming amount for an eligible dependant CRA credit for Sponsored Parent on Personal Income Tax return

[sameerverma]

Hi, I'm filing my personal income tax return and wanted to confirm if I can claim the eligible dependant credit for one of my parent who I sponsored under Family Class. Based on the eligibility check mentioned on the CRA website, I think I'm eligible as I'm single and my parents lived with me in my home in the Year 2020. But I'm also aware that when I sponsored my parents, I signed the sponsorship agreement/undertaking. So, I wanted to confirm if I claim this credit from CRA if there will be any impact on the PR of my parents OR on any future sponsorships that I would like to do. For e.g. sponsoring my wife?

Below is from the CRA website:
If you have not claimed an amount for the year on line 30300 of your return, you may be able to claim this amount for one dependant if, at any time in the year, you met all the following conditions at once:

• You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person
• You supported the dependant in 2020
• You lived with the dependant (in most cases in Canada) in a home you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant must also have been either:

• your parent or grandparent by blood, marriage, common-law partnership, or adoption
• your child, grandchild, brother or sister by blood, marriage, common-law partnership, or adoption and was under 18 years of age or had an impairment in physical or mental functions

Thanks in advance for all the help.

 

[Naheulbeuck]

You can claim this credit as long as you qualify for the credit, the undertaking does not apply to dependent tax credit as it is not considered social assistance.

https://www.cic.gc.ca/english/helpcentre/answer.asp?qnum=1526&top=14

 

[canuck78]

Hi, I'm filing my personal income tax return and wanted to confirm if I can claim the eligible dependant credit for one of my parent who I sponsored under Family Class. Based on the eligibility check mentioned on the CRA website, I think I'm eligible as I'm single and my parents lived with me in my home in the Year 2020. But I'm also aware that when I sponsored my parents, I signed the sponsorship agreement/undertaking. So, I wanted to confirm if I claim this credit from CRA if there will be any impact on the PR of my parents OR on any future sponsorships that I would like to do. For e.g. sponsoring my wife?

Below is from the CRA website:
If you have not claimed an amount for the year on line 30300 of your return, you may be able to claim this amount for one dependant if, at any time in the year, you met all the following conditions at once:

• You did not have a spouse or common-law partner or, if you did, you were not living with, supporting, or being supported by that person
• You supported the dependant in 2020
• You lived with the dependant (in most cases in Canada) in a home you maintained. You cannot claim this amount for a person who was only visiting you.

In addition, at the time you met the above conditions, the dependant must also have been either:

• your parent or grandparent by blood, marriage, common-law partnership, or adoption
• your child, grandchild, brother or sister by blood, marriage, common-law partnership, or adoption and was under 18 years of age or had an impairment in physical or mental functions

Thanks in advance for all the help.

When did they get PR?

 

[sameerverma]

When did they get PR?

In the Year 2020, they did the landing.

 

[canuck78]

In the Year 2020, they did the landing.

what month

 

[sameerverma]

what month

August 2020

 

[canuck78]

August 2020

They aren't actually tax residents this year so I don't believe they can count as dependents. I am not an accountant so I would clarify with one.

 

[Naheulbeuck]

They aren't actually tax residents this year so I don't believe they can count as dependents. I am not an accountant so I would clarify with one.

Like I said above, they need to meet all the requirements including being an eligible dependent, which for the purpose of this section means:

2.41 For the purposes of this credit, an eligible dependant is a person who, at the time referred to in ¶2.40(ii), is:

• resident in Canada (this residency requirement does not apply if the person is a child of the individual);
• wholly dependent for support on the individual, or the individual and the other person or persons as the case may be; and

the residency, will depend on many factors, including where they lived before becoming PR, did they stay in Canada for 183 or more days in the year (note that the day you arrive counts as one full day, ties to Canada, status...

Like canuck78 said though, you need to make sure that it meets all the criteria even if your undertaking does not apply, it does not make it easier for you to claim this credit, all criteria must be met. You also mention for example that you worry about the impact it could have on sponsoring your wife, that is another red flag as one of the criteria is to not be married (if married it becomes quite hard to show that you do not live with them, support them, or are supported by your spouse (any transfer of money between you and your wife would indicate otherwise).

Again, make sure that every detail is right for you to use this credit, we do not have all the information you have, feel free to provide more information for a more accurate determination as to whether or not you qualify for this credit.

 

[sameerverma]

Like I said above, they need to meet all the requirements including being an eligible dependent, which for the purpose of this section means:

2.41 For the purposes of this credit, an eligible dependant is a person who, at the time referred to in ¶2.40(ii), is:

• resident in Canada (this residency requirement does not apply if the person is a child of the individual);
• wholly dependent for support on the individual, or the individual and the other person or persons as the case may be; and

the residency, will depend on many factors, including where they lived before becoming PR, did they stay in Canada for 183 or more days in the year (note that the day you arrive counts as one full day, ties to Canada, status...

Like canuck78 said though, you need to make sure that it meets all the criteria even if your undertaking does not apply, it does not make it easier for you to claim this credit, all criteria must be met. You also mention for example that you worry about the impact it could have on sponsoring your wife, that is another red flag as one of the criteria is to not be married (if married it becomes quite hard to show that you do not live with them, support them, or are supported by your spouse (any transfer of money between you and your wife would indicate otherwise).

Again, make sure that every detail is right for you to use this credit, we do not have all the information you have, feel free to provide more information for a more accurate determination as to whether or not you qualify for this credit.

Thanks for your reply. They came here in august 2020 so we don’t satisfy 183 day rule condition. Yes I’m still single. I just wanted to make sure there won’t be any impact to future sponsorship as I’m planning to get married in next few months.

But I think I’m clear now that I can’t apply for this credit.

 

[canuck78]

Thanks for your reply. They came here in august 2020 so we don’t satisfy 183 day rule condition. Yes I’m still single. I just wanted to make sure there won’t be any impact to future sponsorship as I’m planning to get married in next few months.

But I think I’m clear now that I can’t apply for this credit.

Won’t impact future sponsorship