Chapt 4 new 2 Flashcards
Who is eligible to claim the GST/HST credit?
a resident of Canada who is 19 or older, or has a spouse or common law partner, or is a parent of a child
Bob and Judith are married and have one child, Rebecca who was 22 years old at the end of the year and who is physically infirm. Bob claimed an “amount for infirm dependant 18 or older “ for Rebecca on his tax return. Rebecca is single and is not a parent. For GST/HST purposes, is Rebecca a qualified child of Bob and Judith?
No. Rebecca does not qualify as a child because she is not under 18. she is an eligible individual and must, apply for her own GST/HST credit.
In the case of a married or c/l partners, who should apply for the GST/HST credit when filing their tax return?
either one can apply, they just have to agree to who applies
Jo is 20 years old and single. what does she have to do in order to receive the GST/HST Credit?
must file a tax return and say “yes” to the GST/HST question
Katleen Banks, aged 17 at the end of the year, is single and has two children. she claimed an amount for an eligible dependant for one of the children. Kathleen was not living with the father of the children at the end of the year.
Kathleen’s net income for the year is $15,570. is she eligible for the GST/HST credit?
although she is under 19 Kathleen is eligible for the GST/HST credit because she is a parent.
Calculation:
basic credit $265
Eligible dependant 265
Credit for other child 139
total 808
since her net income is less than $34,561, there is no reduction. therefore she will receive 808 in quarterly instalments of 202
Ellie is 16. she is a single mother. Ellie and her baby live with Ellie’s mother Barbara. Barbara supports Ellie and the baby; Barbara claimed an amount for an eligible dependant in respect of the baby when she filed her tax return
Can ellie claim the GST/HST Credit for herself and the baby?
Can Barbara claim it for Ellie?
yes. Ellie is a parent and the baby is her qualified child.
no. Ellie is not a qualified child because she is now a parent.
Maureen is 17 and single. She and her two year old son Norman, live with her parents. Maureen is the only one entitled to claim an amount for an eligible dependent in respect of Norman. Explain how the GST/HST credit claim(s) should be filed for this family. Assume that their net income is low enough to permit maximum claims.
Because Maureen is a parent she must claim her own GST/HSt basic credit of 265. She will also claim the eligible dependant for Norman since he is her child and she is single. She is also eligible to receive an additional credit of 139.
Maureen’s parents, one of them can claim the GST/HST credit for themselves and the spouse. 265 + 265. Even though Muareen is under 19, her parents cannot claim her because she is now a parent.
David and robin are married and have 3 children ages 6, 12, and 17. for purpose of Canada Child tax benefit
a. do they have to notify CRA when the 17 year old turns 18?
b. do they have to notify CRA when the 17 year old moves out?
No. This is done automatically based on the birthdates
Yes. You need to let CRA know
Dave and Lynn have 3 children living at home. Lynn received $100 / month under the Universal child care benefit program. she received an RC62 form shown below. Before taking into account the UCCB, Dave’s net income for the year is $23,450 while Lynn’s is $48,572
A. on who’s return should the UCCB be reported?
b. how will the UCCB affect their family net income for Canada child tax benefit purposes?
should be reported on the lowest income therefore it would be Dave’s.
b. UCCB will.not be included in family net income for the purposes of Child tax benefit.
Diana received the UCCB and CCTB for her two children in 2011. as of Nove the custody fo the children was awarded to her former spouse Stephen. in 2012 Diane was required to repay $200 UCCB and $1,052 CCTB that she ahd received but was not entitled to.
How much can DIane deduct on her 2012 return in respect of these repayments.
$200., Because the CCTB is not considered to be income, there is no deduction for CCTB amounts repaid. Diane can deduct, on line 213, the $200 UCCB that is repaid.
