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Thursday, April 23, 2015

Claiming Child's Tutoring under Medical Expenses on T1 General Canadian Tax Return

Question: We live in Canada and are filing T1 returns as residents. This year my child received a psychologists note that tutoring was necessary and we paid the tutoring bill. I made a small amount of money from a part time job while my husband made quite a bit more. What is the best strategy for claiming a dependent's tutoring in this case?

Answer: Because your husband made more money than you, it will be in his best interest to claim your child as a dependent on the T1 general Canadian tax return.

In Canada, tutoring services that are supplementary to the primary education of a person with a learning disability or an impairment in mental functions, and paid to a person in the business of providing these services to individuals who are not related to the person are eligible medical expenses, so long as a medical practitioner has certified in writing that these services are necessary.

 On line 330 of the T1, you can claim medical expenses for yourself, spouse or common-law partner, and your dependent children born in 1997 or later. If your child is over the age of 18, it is in your best interest to claim the expenses under your income tax return as you made less than your husband.

My guess is that your child is under the age of 18 and the tutoring expenses will have to be claimed in line 330 of your husband's return if he is claiming the child as a dependent.

Dependents and Medical Expenses Overview

  • Claim dependent under spouse with the  highest income
  • If dependent is over 18, claim dependent medical expenses under spouse with lowest income
  • If dependent is under 18, dependent medical expenses must be claimed by whoever is claiming dependent

If you have any questions about income taxes, we can help. We focus on cross borders U.S. Canada income tax issue. Please give us a call.

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