# Under 18 - to file or not to file?



## noviceinvestor (Jan 7, 2013)

I have a friend whose 17-year-old kid works at a burger joint part-time. I understand someone who is under 18 does not have to file his/her taxes. However, I've also heard people say that it's good to start filing taxes early (even if it's before 18) for the purpose of building RRSP contribution room. What's the best thing to do in this situation? Wouldn't the kid get some tax refund back?


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## Zeeshanbmerchant (Jan 4, 2014)

noviceinvestor said:


> I have a friend whose 17-year-old kid works at a burger joint part-time. I understand someone who is under 18 does not have to file his/her taxes. However, I've also heard people say that it's good to start filing taxes early (even if it's before 18) for the purpose of building RRSP contribution room. What's the best thing to do in this situation? Wouldn't the kid get some tax refund back?


If you have taxable income you have to file. Yes he would probably get all of his tax deducted back assuming he didnt make more than 12k which I doubt part time at a burgee joint





Kid would get a t4 like any employee and would file his taxes


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## DividendLuvr (Mar 5, 2014)

Definitely file - there will likely be a refund plus he is building up RRSP contribution room, as you noted. Not sure what the downside would be.


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## OurBigFatWallet (Jan 20, 2014)

I agree with dividendluvr. Definitely file. The RRSP cont room will add up in the long term


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## uptoolate (Oct 9, 2011)

All of the above! File for sure.


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## Zeeshanbmerchant (Jan 4, 2014)

Zeeshanbmerchant said:


> If you have taxable income you have to file. Yes he would probably get all of his tax deducted back assuming he didnt make more than 12k which I doubt part time at a burgee joint
> 
> 
> 
> ...


I was wrong

i guess you dont have to file, if you only a refund.


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## Taraz (Nov 24, 2013)

It should be really simple to do his taxes (you can probably just do it yourselves). Make sure that they're not deducting CPP as minors are exempt (you should get a refund if they did deduct it). Also, you'll get the RRSP room and he will most likely get a refund back.

Also, the requirement to file is not based on age (although the requirement to pay CPP is). Anyone with taxes owing needs to file a return (and if you have a refund, you should obviously file).


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## Charlie (May 20, 2011)

He'll most likely get a refund for filing. It takes little time, and costs nothing. ufile.ca is easy to use and no charge if income is below a certain threshold ($20K or thereabouts).


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## Eclectic12 (Oct 20, 2010)

Zeeshanbmerchant said:


> I was wrong
> 
> i guess you dont have to file, if you only a refund.


Here's a more complete list:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html


Since there are things that will be lost if one doesn't file (ex. earning RRSP contribution room), there's usually articles out there indicating it's worth the time to file.

http://www.cra-arc.gc.ca/nwsrm/txtps/2013/tt130415-eng.html
http://business.financialpost.com/2013/04/25/tax-deadline-april-30-looms/
http://www.theglobeandmail.com/life...ad-the-tax-talk-with-your-teen/article623078/


Cheers


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## MrMatt (Dec 21, 2011)

Charlie said:


> He'll most likely get a refund for filing. It takes little time, and costs nothing. ufile.ca is easy to use and no charge if income is below a certain threshold ($20K or thereabouts).


Studio Tax is free.


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## Allan Madan (Jan 23, 2015)

Filing at 17 is ideal since the taxpayer may qualify for the GST Credit once he/she turns 18. 

Sincerely 
http://www.madanca.com
Madan Chartered Accountant


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