Individuals with a dependant
Before you start
The UFile software is designed to prepare returns for all family members.
Before you begin preparing a return, ask the individual if they have a spouse, common-law partner, or any dependants. If the individual has a spouse, common-law partner and/or dependants, ensure that you include their information when completing the return. Not providing information for a spouse, common-law partner or dependants could impact any benefits and credits the family may be entitled to.
Once you have entered all of the individual’s information, you can add a spouse or a dependant in UFile.
If the individual has a spouse or common-law partner, you need to indicate if you will be preparing a tax return for the spouse as well.
If the individual has a spouse and a dependant, add the spouse first and then add any dependants.
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Need to know
A dependant is someone who is wholly reliant on another individual for support and under 18 years of age or had an impairment in physical or mental functions. They must also be either the individual’s: parent or grandparent, child or grandchild, brother or sister, uncle or aunt, niece or nephew, by blood, marriage, common-law partner, or adoption.
For tax purposes, a child is considered as:
- a person of whom the individual is the natural or legal parent
- the child of the individual‘s spouse or common-law partner
- an adopted child of the individual, their spouse or common-law partner
- the spouse of a child of the individual, or their spouse or common-law partner (for example, a son-in-law or a daughter-in-law)
- anyone who is wholly dependent on an individual for support and for whom the individual has or had custody and control immediately before they reached the age of 19 (for example, a grandparent who solely supports a grandchild who lives with them)
Note
This does not include a foster child for whom the foster parents receive support payments from an agency responsible for the child’s care.
Child care expenses are amounts an individual paid to have someone look after an eligible child so that they, and their spouse (if applicable), could:
- earn income from employment
- carry on a business either alone or as an active partner
- attend school under the conditions of an educational program
- carry on research or similar work for which a grant was received
Generally, the child care expenses are claimed by the lower net income individual. However, there are situations when the individual with the higher net income may claim the child care expenses. These situations exist when the individual with the lower net income attended school, was incarcerated, or was mentally or physically infirm. These types of situations fall under the child care – special cases. The child care expenses can be claimed by the higher net income individual, or in part by both individuals. In this situation, the person with the higher net income must calculate the claim first.
If you are completing returns for both individuals, UFile will automatically calculate the child care expense claim for each individual, based on the number of weeks entered under the profile of the individual with the higher net income. You will find more information on how to input child care expenses in our screen-by-screen instructions.
Some common credits that an individual may be eligible to claim while supporting a dependant are:
- Disability amount transferred from a dependant (line 31800)
- An individual may have a dependant (other than their spouse or common-law partner) who is eligible to claim the disability tax credit (DTC) on line 31600 - Disability amount for self, but does not need to claim all or part of that amount on their tax return. In this instance, the individual may be able to claim all or part of their dependant's disability amount on their tax return. For more information please see Persons with disabilities.
- Claiming an eligible dependant (line 30400)
- An individual may claim the amount for an eligible dependant if at any time during the year, they met all of the following conditions at once:
- They do not have a spouse or common-law partner, or if they did, they were not living with, supporting or being supported by that spouse or common-law partner
- They supported the dependant
- They lived with the dependant
- The dependant must have been the individual's child, grandchild, brother or sister under 18 years old. However, there is no age requirement if the dependant has an impairment in physical or mental functions
- Even if all of the conditions have been met, the individual cannot claim this amount if any of the following applies:
- Someone else is claiming a spouse or common-law partner amount (line 30300) for this dependant
- The dependant is the individual's spouse or common-law partner
- Someone else is claiming an amount on line 30400 of their return for this dependant
- Someone else in the household is making this claim (even if the claim is for a different dependant). Each household is allowed only one claim for this amount
- The individual made support payments for the dependant. However, if they were separated from their spouse or common-law partner for only part of the year because of a breakdown in their relationship, they may be able to claim an amount for that child on line 30400
Note
If the individual and another person are both eligible to claim this amount for the same dependant, such as when there is shared custody of a child, but cannot agree who will claim the amount, neither of them can make the claim.
For more details see, What are the situations in which you cannot claim the amount for an eligible dependant?
For more information on the eligibility criteria for the specific credits being claimed, refer to the Federal Income Tax and Benefit Guide.
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Screen-by-screen instructions
Disclaimer
This training uses screenshots taken from prior versions of the UFile CVITP software and consequently, the images may differ slightly from the current version of UFile CVITP. The content is accurate and generally, the only difference will be the tax year being referenced. Should the current year’s software contain any significant changes, a new screenshot will be published as soon as possible.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Add dependant sub-tab is highlighted
How to add a dependant
Select + add dependant
Note: For more information about this topic, use the UFile Search feature
It is important to add all dependants into UFile in order to ensure that the individuals involved are receiving all the benefits and credits to which they are entitled.
Text version
UFile screen
Under Interview tab
Dependant sub-tab is highlighted
Left-hand topic menu is highlighted as follows:
Dependant ID
Interview setup
Interest, investment income and carrying charges
Medical and disability
HBP, LLP and other plans and funds
RRSP contributions, limits
Tuition, education, student loans
Other deductions and credits
Prior year information
Refund/balance owing
Controls
Other topics
Where to enter?
Dependant
- Enter the dependant’s information in the Dependant Identification section (follow same process as for the taxpayer)
The left side menu automatically populates the most common credits that individuals may be entitled to claim for their dependants:
- medical and disability
- tuition, education, student loans
- other deductions and credits
Some credits, such as child care expenses, will populate when you complete the Dependant Identification.
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Interview setup topic is highlighted
Interview setup section is highlighted
Interview setup
- In the Interview setup, check the boxes that apply to the dependant’s tax situation
This will prompt the program to ask questions about their income, deductions, and credits.
- If none of the boxes apply, click Next
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Controls topic is highlighted
Controls for dependant’s tax return page
Let MaxBack decide is highlighted
Controls for dependant
Note: Federal non-refundable tax credits are used to reduce the amount of federal tax calculated. However, if the total of these credits is more than the federal tax owed, a refund is not issued for the difference.
Some credits, such as the disability amount may be transferred between spouses, or between parents and children.
Other non-refundable tax credits, such as medical expenses and charitable donations, may be combined to get the best tax advantage for the family. When all family members living in the same household are entered into UFile, the software is able to find and apply all possible deductions, credits, and transfers.
- By choosing Let MaxBack decide, UFile will use the most advantageous calculation for all of the returns being prepared for the family
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Controls topic is highlighted
Claim this dependant as the eligible dependant on federal line 30400? is highlighted
Do not claim is highlighted
Controls for dependant – Amount for an eligible dependant
- In the case where the individual cannot claim the amount for an eligible dependant, select Do not claim to the question Claim this dependant as the eligible dependant on federal line 30400?
For more details see, What are the situations in which you cannot claim the amount for an eligible dependant?
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Child care topic is highlighted
Child care expenses incurred for this dependant page
Claiming child care expenses
- Click Child care in the left side menu of the Dependant’s profile
- Then select the type of child care expenses:
- daycare (includes day camp)
- camp (dependant stayed overnight)
- boarding school
- babysitter
Note: If the individual has more than one child that they paid child care expenses for, you must enter the expenses for each child separately, and claim the expenses for each child in their individual profiles.
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Daycare topic is highlighted
Child care expenses – Daycare section is highlighted
Child care expenses – Daycare
- Enter the appropriate child care expense details
- Click Next
Note: In most cases, whether a married couple or a common-law partnership, the child care expenses must be claimed on the return of the individual who has the lower net income. UFile will automatically determine whose return the child care expenses should be claimed on.
Text version
UFile screen
Under Interview tab
Family Head sub-tab
Interview setup topic is highlighted
Child care (special cases) is checked and highlighted
Child care expenses - Special cases
There are situations when the individual with the higher net income may claim the child care expenses. These situations exist when the individual with the lower net income attended school, was incarcerated, or was mentally or physically infirm. The UFile software considers these to be child care special cases.
- In addition to claiming the child care expenses under the dependant’s profile, you must also select Child care (special cases) on the Interview setup page of the individual with the higher net income
- Under the profile for the individual with the higher net income, click Interview setup in the left side menu, then, select Child care (special cases) from the Parents and children section
- Click Next
Text version
UFile screen
Under Interview tab
Higher Income sub-tab
Child care (special cases) topic is highlighted
Child care deduction (special cases) page
A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s is highlighted
Child care expenses - Special cases (continued)
- Select Child care (special cases) from the left side menu and click the + sign next to A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s from the Child care deduction section
Text version
UFile screen
Under Interview tab
Higher Income sub-tab
Higher earner eligible to claim the child care deduction page
Number of weeks of support by the higher income earner section is highlighted
Child care expenses - Special cases (continued)
- Under the Higher Income earner’s profile, enter the number of weeks during the year that any of the special cases listed are relevant to their situation
- Click Next
UFile will then calculate how much of the child care expenses can be claimed on the higher net income individual’s income tax return. If there are any amounts that can be claimed on the lower income earner's income tax return, UFile will automatically claim them based on the information provided.
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Dependant’s medical expenses, infirmity and disability page
Non-refundable tax credits for dependants
- Click on the appropriate field under the Dependant profile to claim non-refundable tax credits
- Fill out the required information on the pages that follow
Text version
UFile screen
Under Interview tab
Dependant sub-tab
Medical and disability topic is highlighted
Dependant’s medical expenses, infirmity and disability page
Infirmity and disability amounts for the dependant* is highlighted
Child disability benefit (CDB)
- Under the Dependant’s profile, click Medical and disability in the left side menu
- Select Infirmity and disability amounts for the dependant
- Answer the questions on the page that follows
Note: The dependant must have a valid Form T2201, Disability Tax Credit Certificate on file with the CRA to claim the CDB.
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Example 1: Employed individual with 2 children as dependants
Instructions
Open your UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.) and points to remember provided in the example to enter all the necessary information into the mock profile. Once completed, compare your results with the solution provided.
Disclaimer
Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.
Background information Name
Candice Lockhart
Social insurance number (SIN)
000 000 000
Address
123 Main Street
City, Province X0X 0X0
Date of birth
May 15, 1986
Marital status
Divorced
Number of children (2)
Rose, born March 30, 2011
Rhys, born June 4, 2014
Slips required:
T4 – Statement of Remuneration Paid
T4E – Statement of Employment Insurance and Other Benefits
Sunny Nursery Day Care Centre receipt
Candice has 2 children (Rose and Rhys). Both children attended daycare.
Points to remember:
Add both dependent children under the family head.
Enter the child care expenses under the children’s profiles.
Information slips for Candice:
T4 – Statement of Remuneration Paid
Text version
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: 123456 Canada Ltd.
Employee’s name and address:
Last name: Lockhart
First name: Candice
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 42,275.00
Box 16: Employee’s CPP contributions – line 30800: 827.36
Box 18: Employee’s EI premiums – line 31200: 652.43
Box 20: RPP contributions – line 20700: 782.50
Box 52: Pension adjustment – line 20600: 1,605.00
Box 22: Income tax deducted – line 43700: 2,807.00
Box 24: EI insurable earnings: 42,275.00
Box 26: CPP/QPP pensionable earnings: 42,275.00
Box 44: Union dues – line 21200: 165.00
T4E – Statement of Employment Insurance and Other Benefits
Text version
T4E – Statement of Employment Insurance and Other Benefits
Protected B
Recipient’s name and address:
Candice Lockhart
123 Main Street
City, Province X0X 0X0
Box 7: Repayment rate: 30%
Box 14: Total benefits paid: 840.00
Box 15: Regular and other benefits paid: 840.00
Box 22: Income tax deducted: 80.00
Box 12: Social insurance number: 000 000 000
Sunny nursery Daycare Centre receipt
Text version
Sunny Nursery Daycare Centre receipt
Candice Lockhart paid the following amounts in 2020 for child care services provided to her children:
Rose Lockhart (daughter)= $1,011.00
Rhys Lockhart (son)= $3,160.00
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Solution 1: Employed individual with 2 children as dependants
Instructions
This solution was calculated using the 2020 version of UFile CVITP , with Ontario as the province of residence. In order to validate your results, make sure you refer to the federal totals generated on lines 15000, 23600, 26000, and 42000, as provincial or territorial calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.
Text version
Candice Lockhart
Total income
10100 Employment income: $42,275.00
11900 Employment insurance and other benefits: $840.00
15000 Total income: $43,115.00
Net income
20600 Pension adjustment: $1,605.00
20700 Registered pension plan deduction: $782.50
21200 Annual union, professional, or like dues: $165.00
21400 Child care expenses (T778): $4,171.00
22215 Deduction for CPP and QPP enhanced contributions $47.28
23600 Net income: $37,949.22
Taxable income
26000 Taxable income: $37,949.22
Non-refundable tax credits
30000 Basic personal amount: $13,229.00
30400 Amount for an eligible dependant: $13,229.00
30800 CPP or QPP contributions through employment: $780.08
31200 Employment insurance premiums through employment: $652.43
31260 Canada employment amount: $1,245.00
33500 Total: $29,135.51
33800 Total @ 15%: $4,370.33
35000 Non-refundable tax credits: $4,370.33
Refund or balance owing
42900 Basic federal tax: $1,322.05
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $1,322.05
41700 Line 40600 - 41600: $1,322.05
42000 Net federal tax: $1,322.05
42800 Provincial or territorial tax: $416.95
43500 Total payable: $1,739.00
43700 Total income tax deducted: $2,887.00
Payments and credits
45110 Climate action incentive: $525.00
47555 Canadian journalism labour tax credit: $0.00
47900 Provincial or territorial credits: $2,377.47
48200 Total credits: $5,789.47
48400 Refund: $4,050.47
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Example 2: Claiming child care (special cases)
Instructions
Open your UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.) and points to remember provided in the example to enter all the necessary information into the mock profile. Once completed, compare your results with the solution provided.
Disclaimer
Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.
Background information Name
Ryan Samson
Social insurance number (SIN)
000 000 000
Address
123 Main Street
City, Province X0X 0X0
Date of birth
November 15, 1983
Marital status
Married to:
Jessica Samson on August 2, 2014
SIN: 000 000 000
DOB: September 10, 1984
Number of children (2)
Son: Jace Samson, DOB May 22, 2016
Daughter: Jackie Samson, DOB: June 22, 2017
Slips required:
- T4 – Statement of Remuneration Paid (Paint colours Inc.)
- T4 – Statement of Remuneration Paid (Smart produce Inc.)
- Over the Rainbow Daycare receipt (Jace and Jackie Samson)
Ryan lives with his wife Jessica and his 2 young children, Jace and Jackie. Although Ryan worked full time at the beginning of the year, due to an unfortunate accident, he was hospitalized on February 20, 2020 and was not discharged until August 27, 2020. He was able to return to work, on a part-time basis, shortly after his discharge. His wife Jessica continued to work full time at a grocery store as a manager while their 2 young children attended daycare.
Points to remember:
- All family members are entered into UFile to ensure an optimal calculation
- The child care expenses are keyed under each child’s individual profile
- Because Ryan was hospitalized for more than 2 weeks, the child care (special cases) is selected under Jessica’s Interview setup as the higher income earner
- Enter 27 weeks as the number of weeks Ryan was temporarily infirm
Information slips for Ryan:
T4 – Statement of Remuneration Paid (Paint colours Inc.)
Text version
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Paint colours Inc.
Employee's name and address:
Last name: Samson
First name: Ryan
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 16,000.00
Box 16: Employee's CPP contributions – line 30800: 150.00
Box 18: Employee's EI premiums – line 31200: 190.00
Box 22: Income tax deducted – line 43700: 900.00
Box 24: EI insurable earnings: 16,000.00
Box 26: CPP/QPP pensionable earnings: 16,000.00
Information slips for Jessica:
T4 – Statement of Remuneration Paid (Smart produce Inc.)
Text version
T4 – Statement of Remuneration Paid
Protected B
Employer's name: Smart produce Inc.
Employee's name and address:
Last name: Samson
First name: Jessica
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income – line 10100: 34,000.00
Box 16: Employee's CPP contributions – line 30800: 200.00
Box 18: Employee's EI premiums – line 31200: 230.00
Box 22: Income tax deducted – line 43700: 1,800.00
Box 24: EI insurable earnings: 34,000.00
Box 26: CPP/QPP pensionable earnings: 34,000.00
Text version
Over the Rainbow Daycare receipt
Ryan Samson and Jessica Samson paid the following amount in 2020 for child care services for their children:
Jace Samson (son)= $2,500.00
Jackie Samson (daughter)= $2,500.00
The child care fees mentioned above are for the period of January 2020 to December 2020.
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Solution 2: Claiming child care (special cases)
Instructions
This solution was calculated using the 2020 version of UFile CVITP , with Ontario as the province of residence. In order to validate your results, make sure you refer to the federal totals generated on lines 15000, 23600, 26000, and 42000, as provincial or territorial calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.
Text version
Ryan Samson
Total income
10100 Employment income: $16,000.00
15000 Total income: $16,000.00
Net income
21400 Child care expenses (T778): $0.00
22215 Deduction for CPP and QPP enhanced contributions $8.57
23600 Net income: $15,991.43
Taxable income
26000 Taxable income: $15,991.43
Non-refundable tax credits
30000 Basic personal amount:$13,229.00
30800 CPP or QPP contributions through employment: $141.43
31200 Employment insurance premiums through employment: $190.00
31260 Canada employment amount: $1,245.00
33500 Total: $14,805.43
33800 Total @ 15%: $2,220.81
35000 Non-refundable tax credits: $2,220.81
Refund or balance owing
42900 Basic federal tax: $177.90
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $177.90
41700 Line 40600 - 41600: $177.90
42000 Net federal tax: $177.90
42800 Provincial or territorial tax: $0.00
43500 Total payable: $177.90
43700 Total income tax deducted: $900.00
Payments and credits
45110 Climate action incentive: $600.00
47555 Canadian journalism labour tax credit: $0.00
47900 Provincial or territorial credits:
48200 Total credits: $1,500.00
48400 Refund: $1,322.10
Jessica Samson
Total income
10100 Employment income: $34,000.00
15000 Total income: $34,000.00
Net income
21400 Child care expenses (T778): $5,000.00
22215 Deduction for CPP and QPP enhanced contributions $11.43
23600 Net income: $28,988.57
Taxable income
26000 Taxable income: $28,988.57
Non-refundable tax credits
30000 Basic personal amount: $13,229.00
30800 CPP or QPP contributions through employment: $188.57
31200 Employment insurance premiums through employment: $230.00
31260 Canada employment amount: $1,245.00
33500 Total: $14,892.57
33800 Total @ 15%: $2,233.89
35000 Non-refundable tax credits: $2,233.89
Refund or balance owing
42900 Basic federal tax: $2,114.40
40500 Federal foreign tax credit (T2209): $0.00
40600 Federal tax: $2,114.40
41700 Line 40600 - 41600: $2,114.40
42000 Net federal tax: $2,114.40
42800 Provincial or territorial tax: $300.00
43500 Total payable: $2,414.40
43700 Total income tax deducted: $1,800.00
Payments and credits
45110 Climate action incentive:
47555 Canadian journalism labour tax credit: $0.00
47900 Provincial or territorial credits: $2,750.00
48200 Total credits: $4,550.00
48400 Refund: $2,135.60
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