# Question on taxes



## FrankTax (Mar 7, 2012)

I am starting in Canada, am Canadian but lived out of the country most of my life. My son (Canadian) is with me in Canada but my wife (Mexican) and 2 other children 5, girl(Canadian Citizenship in process) and 10, boy (Canadian) are still in Mexico. I am sending most of the money I earn to them so I am fully supporting them. My wife does not work there.
Is there a way I can deduct the money I have sent them in the past months thru western union and moneygram?
Just wondering because about 1/2 or more of my income is going to them. It is the only income that they have. I plan on bringing them in August.
Can anyone answer this question and how do I do this? Thank you so much!

Frank


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## Homerhomer (Oct 18, 2010)

No you can't deduct money you send, just like I can't deduct my I spend on feeding my son.

You can however get a spousal amount credit which will result in some savings (bit less than $2000).


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## Four Pillars (Apr 5, 2009)

Homerhomer said:


> You can however get a spousal amount credit which will result in some savings (bit less than $2000).


Can he get the spousal amount credit even if the spouse is not a Canadian resident?


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## Homerhomer (Oct 18, 2010)

Four Pillars said:


> Can he get the spousal amount credit even if the spouse is not a Canadian resident?


Yes.

http://www.cra-arc.gc.ca/E/pub/tp/it513r/it513r-e.html#P178_25861

Non-Resident Spouse, Child or Grandchild of an Individual Resident in Canada
¶ 35. In order for an individual to claim the spousal tax credit for a non-resident spouse, or the dependant tax credit for a non-resident child or grandchild of the individual or the individual's spouse, it is necessary that such non-resident person be supported by or be dependent for support on the individual. The question of support or dependency is determined on the facts of each case. If the non-resident spouse, child or grandchild have enough income or assistance for a reasonable standard of living in the country in which they live, they are not considered to be supported by or be dependent for support on the individual. Also, gifts which merely enhance or supplement the already adequate lifestyle of the non-resident person do not constitute support.

The criteria for determining whether an individual may claim a personal tax credit for a spouse (see ¶s 4 to 10 above) or child or grandchild (see ¶s 23 to 30 above) who is a resident also apply for one who is a non-resident. In determining if the non-resident spouse is supported by the individual, or the non-resident child or grandchild is dependent for support on the individual, the Department will consider such factors as:

•the income of the spouse, child or grandchild from all sources;
•any support provided to the spouse, child or grandchild by government agencies of the country in which such person resides, such as pensions, medicare, housing, etc.;
•the cost of living in the particular country and the ability of the spouse, child or grandchild to provide self-support; and
•any support provided to the spouse, child or grandchild by other persons.
¶ 36. To support a personal tax credit claim for a non-resident spouse, child or grandchild, an individual has to provide (with the income tax return on which the tax credit is claimed) proof of the amounts contributed by the individual as support of the spouse, child or grandchild. Such proof will usually consist of receipts for post office or bank money orders, cancelled cheques that were payable to and negotiated by the spouse, child or grandchild, or receipts from private agencies established for the purpose of transferring money or goods to residents of other countries.

¶ 37. Receipts for cash or goods transferred directly from an individual to a non-resident spouse, child or grandchild are not considered acceptable proof of support.

¶ 38. Documents submitted as proof of support should show:

•the name and address of the non-resident spouse, child or grandchild;
•the name of the transferor;
•the date of the transfer;
•the amount of money transferred or, where goods* were provided, their nature and fair market value; and
•if the transfer was made to a guardian, the name and address of the guardian.
*Goods provided have to be of such a nature as to be compatible with the concept of "support," i.e., luxury items do not qualify.


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## Four Pillars (Apr 5, 2009)

Homerhomer said:


> Yes.
> 
> http://www.cra-arc.gc.ca/E/pub/tp/it513r/it513r-e.html#P178_25861


Thanks - very interesting. I had no idea.


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## FrankTax (Mar 7, 2012)

Thanks a lot for the information. I will go to CRA tomorrow to check this. I really appreciate all of your help. Thanks.

Frank


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