# Dependents not living in Canada



## citushare (Jul 2, 2015)

Hi guys,
'm living in Canada while my kids live with their grandparents elsewhere.
I’m responsible for my parents, my kids' living expenses, my parents medical expenses (including some expensive procedures).
I called Canada Revenue to see if I’m eligible for any tax relief , it seems that if my dependents to not live me with me , then I’m not eligible. I’m treated like a single person with no kids, not dependents.
Now is their a legal way to have those expenses exempted? like for example a trust for my kids or a similar arrangement.

Any expert advice?

thanks
Citushare


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## OhGreatGuru (May 24, 2009)

According to this H&R Block web site, you won't have much luck claiming your children as dependents. http://taxtalk.hrblock.ca/family-ma...and-outs-of-claiming-non-resident-dependants/


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## citushare (Jul 2, 2015)

*The link was very useful*



OhGreatGuru said:


> According to this H&R Block web site, you won't have much luck claiming your children as dependents. http://taxtalk.hrblock.ca/family-ma...and-outs-of-claiming-non-resident-dependants/


Thank you , the link was very useful,
I think I have a chance because:
1. More than 90% of my world income is Canadian
2. The kids spent an academic year here in Canada before

The problem will be proving my parents are my dependents, any ideas ?


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## OhGreatGuru (May 24, 2009)

No, I'm afraid not. I thought I had seen threads where you could do this, but when I did a quick scan of the subject on CRA's we site and the T1 Guide it only talks about parents living with you or at least domiciled in Canada.


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## Guban (Jul 5, 2011)

The 90% Canadian income is only relevant if you are a non Canadian resident. You already wrote that you live in Canada.

Your children must live with you in Canada in the year you want to claim them and it sounds like they don't. Are they in school while living with your parents?

From what you wrote, it seems like your parents are not resident in Canada, so they can't be dependent a for tax purposes.


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## citushare (Jul 2, 2015)

OhGreatGuru said:


> No, I'm afraid not. I thought I had seen threads where you could do this, but when I did a quick scan of the subject on CRA's we site and the T1 Guide it only talks about parents living with you or at least domiciled in Canada.


Thank you for looking into that,
But is there another legal way to have the amounts I pay exempted? I know gifts are exempted, can I set a trust in there name or something?
I'm saying this because I'm paying for some heavy medical bills.

your help is appreciated


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## citushare (Jul 2, 2015)

Guban said:


> The 90% Canadian income is only relevant if you are a non Canadian resident. You already wrote that you live in Canada.
> 
> Your children must live with you in Canada in the year you want to claim them and it sounds like they don't. Are they in school while living with your parents?
> 
> From what you wrote, it seems like your parents are not resident in Canada, so they can't be dependent a for tax purposes.


OK, thanks for pointing this out. I am a Canadian Citizen and my kids too.
So if my Kids were attending school here in 2012, but left the country after the school year the same year and never returned, except for the occasional vacations, I would be able to claim the whole of 2012?

Is there a way to create a trust fund for them or something so the payments I send to them can be considered gifts? or can I claim them as Child Support Payments?

I'm saying this because, between the medical bills for my parents and supporting my kids, I have very little left.

A little rant : the world is a global village now, why do I need to pay more tax than the person living across the street when my kids and parents do not cost the country in terms of education , and medical care . just because they have the "wrong" address? Why do I need to pay more tax when I pay for education and health care for them?

ok, got that off my chest. looking forward to your help.


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## Guban (Jul 5, 2011)

Citizenship does not matter for Canadian taxation. It is residency that counts, and they don't appear to be residents of Canada. Oddly, the tax code does allow for non resident spouses, but not other dependants.

You can gift all you like, trust fund or not, but these gifts are not eligible for a donation tax credit. Child support paid to a non resident person can't be deducted, I believe.

I understand what you are saying about the hardship that this puts you in, but CRA rules don't seem to allow you to get a break. I will point out that the money that you pay for support leaves the country, and does not directly benefit people living in Canada. Many might question why you deserve to pay less taxes compared to a similar person that contributes to the Canadian economy by paying people living here.


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## citushare (Jul 2, 2015)

Guban said:


> Citizenship does not matter for Canadian taxation. It is residency that counts, and they don't appear to be residents of Canada. Oddly, the tax code does allow for non resident spouses, but not other dependants.
> 
> You can gift all you like, trust fund or not, but these gifts are not eligible for a donation tax credit. Child support paid to a non resident person can't be deducted, I believe.
> 
> I understand what you are saying about the hardship that this puts you in, but CRA rules don't seem to allow you to get a break. I will point out that the money that you pay for support leaves the country, and does not directly benefit people living in Canada. Many might question why you deserve to pay less taxes compared to a similar person that contributes to the Canadian economy by paying people living here.


Thanks again for the information.
you left the door open for me for another rant (if it's OK with you), so here I go:
If my parents were here , it would be you who pay for their healthcare, Not you .. as in you personally , but you get my point, right?
If my kids were here, it would be you who pays for their schooling. But I'm shouldering the burden , instead of a tax break, I get taxed at the same rate of single person with no responsibilities, to whom I could be paying for his parents healthcare with my tax.
I've applied for PR for my parents, but you know how long this takes, because the government do not want to pay for the healthcare for my parents, because they live in the "wrong address" but they are happy to take my money for the healthcare of other parents who have the "right address".

aaaaaah, my chest feels lighter, just a rant , don't let it take from the fact that I got good education from the answers I got here.
thanks again


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## Guban (Jul 5, 2011)

Good points on healthcare and education.

You say that you paid for your children's education outside of Canada? Was it post secondary? You may be able to get a tax break after all! Have a look at this link.

http://www.cra-arc.gc.ca/E/pbg/tf/tl11a/README.html


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## citushare (Jul 2, 2015)

Guban said:


> Good points on healthcare and education.
> 
> You say that you paid for your children's education outside of Canada? Was it post secondary? You may be able to get a tax break after all! Have a look at this link.
> 
> http://www.cra-arc.gc.ca/E/pbg/tf/tl11a/README.html


Thanks again for taking the time to look into this , but this is something that I will have to consider in many years, my kids are still too young for that.

reagrds


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