# T5 Child saving account



## gibor365 (Apr 1, 2011)

I hold Child saving account at ING direct. On T5 slip appears SIN # of my kids. Amount about $700. What should I do with this T5?
Declare as my income?
Fill out taxes for my kids?
Not to declare at all?


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## Ihatetaxes (May 5, 2010)

Good question. When you put 35k in a savings account under a kids name I am sure RCA will want their share. I have the same issue but a much smaller amount.

Looking forward to hearing an answer.


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## Sampson (Apr 3, 2009)

Do the taxes for your child.


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## Plugging Along (Jan 3, 2011)

I'm not sure a regular bank account is the same as an in trust account. However, on our in trust account, it follows the attribution rules for interest. We pay the taxes on it not our children, unless I can prove that he money was earned by my child. We have always claimed the interest from our children's account too.


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## Homerhomer (Oct 18, 2010)

Plugging Along said:


> I'm not sure a regular bank account is the same as an in trust account. However, on our in trust account, it follows the attribution rules for interest. We pay the taxes on it not our children, unless I can prove that he money was earned by my child. We have always claimed the interest from our children's account too.


Exactly, unless one can prove it's children income it is attributed back to the parents, however if you put the interest into a seperate account then the interest on that is children income.


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## funinagg (Jun 10, 2010)

a related question is who gets (for tax purposes) the interest in a joint account? can account holders choose? or will the attribution rule determine? if yes (to attribution) then if accounts are separated then the interest would go to the person holding the account? it makes sense since whatever goes into the accounts is post-tax and any subsequent income should be assignable to anyone.


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## gibor365 (Apr 1, 2011)

Homerhomer said:


> Exactly, unless one can prove it's children income it is attributed back to the parents, however if you put the interest into a seperate account then the interest on that is children income.


Those CRA rules are so confusing.  So, what you mean that if I open second account for my child and transfer there interest earned on 1st , than my child should fill out taxes for interest earned on 2nd?

Another thing...if parent should claim interest from this account, he will be doing it until rest of his life?! Kid will become adult , get married and retired person will continue to report interest?!


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## Sampson (Apr 3, 2009)

I know the rules for attribution on property given to minors is clear, but is it also with cash?

I suppose it depends on sums of money, and whether it really is given to the minor. PA's example with the trust account suggests that despite the intent of gifting monies to the minor, attribution rules still apply. 

Edit, just snooped CRA website, and my read on the trust account is that those monies can still revert back to the original source (i.e. the parent can collapse the account and take the money back), therefore attribution rules are in place.

Can a tax expert/accountant confirm this?


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## gibor365 (Apr 1, 2011)

I want to understand: this Child Saving account.... is it Trust account?


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## tombiosis (Dec 18, 2010)

Sampson said:


> I know the rules for attribution on property given to minors is clear, but is it also with cash?
> 
> I suppose it depends on sums of money, and whether it really is given to the minor. PA's example with the trust account suggests that despite the intent of gifting monies to the minor, attribution rules still apply.
> 
> ...


This is how it was explained to me...I set up a trust account for my child a few years back....haven't had a tax issue yet as the investments held have lost money.


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## gibor365 (Apr 1, 2011)

tombiosis said:


> This is how it was explained to me...I set up a trust account for my child a few years back....haven't had a tax issue yet as the investments held have lost money.


but still...shouldn't you report dividends?


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