Amounts for your spouse and dependants If you are entitled to deduct alimony or maintenance payments you made to or for the benefit of a spouse, former spouse or dependant, you cannot claim a personal amount for that person. The only exception to this rule is in the year of separation. In the year of separation, you can claim either: · your alimony or separation allowance paid under a court order or written separation agreement; or . the personal amounts for that spouse, child, or both. You may want to do a rough calculation of your taxes using each of these claims to work out which one is better for you. You can claim one or the other, but not both. Note Only the person reporting the Family Allowance payments for a child can claim the "amounts for dependent children" for that child. See lines 118 and 304 to fmd out if you can claim the "amounts for dependent children." Income of spouse and other dependants The income of your spouse and other dependants can affect the personal amounts you claim for them. You have to know the income of each person, before you calculate your claim. To calculate your dependants' income, use their "net income" from line 236 of their return (or the amount their net income would be if they completed a return). Then add to this any of the following amounts they received: . guaranteed income supplement and spouse's allowance which appear as "Net federal supplements paid" in box 21 of the T4A (OAS) slip; · Workers' Compensation Board benefits (as shown on their T5007 infommation slip); and · welfare and other social assistance payments (for which they may have received a T5007 slip). Do not include payments they received for being a foster parent or caring for a disabled adult that lived with them. If you are claiming the married amount and your spouse received welfare or other social assistance payments while you were married and living together, do not add the welfare payments to your spouse's "net income" if your income is higher. Non-resident dependants You may be able to claim a personal amount for certain dependants who live outside Canada, if they depended on you for support. You may be able to make this claim for your spouse, and the children and grandchildren of you or your spouse. You cannot claim an amount for any other relatives who were not living in Canada at any time in the year. Note If your spouse, your children, or both, already have enough income or assistance for a reasonable standard of living in the country in which they live, they are not considered to depend on you for support. Gifts you send to your spouse and children are not considered to be support. How to claim · Complete and attach to your return Form TIE-NR, Declaration of Support of Non-Resident Dependent Spouse and Children. With the help of the instructions follow under lines 303 and 304, calculate your personal amounts for the "married amount" and the "amounts for dependent children". · Attach proof of your support payments to your return. The proof of payment has to show the amount, the date of payment, and the dependant's name and address. If the funds were sent to a guardian, the guardian's name and address also have to appear on the proof of payment. If you were married in 1993, you may be able to claim part or all of the $5,380 spousal amount. · Calculate your claim on page 2 of your return. · If your spouse had net income of $5,918 or more, you cannot claim a married amount. Change in marital status-If your marital status changed in 1993, it may affect the married amount you can claim. Follow these instructions: · If you got married in 1993, you have to reduce your claim by your spouse's net income for the whole year. · If you were separated and then got back together in 1993, you have to consider your spouse's net income for the whole year. · If you separated in 1993, and were not back together at the end of 1993, you only have to reduce your claim by your spouse's net income before the separation. If you make alimony or separation payments to your spouse, or former spouse, see line 220 for details. Tax tip If your claim for the married amount is reduced or eliminated because of dividends your spouse received, it may be better if you report all of your spouse's dividends. See line 120 for details. The person who has to report all the Family Allowance paymentas for a child, is usually the only person who can claim the personal amount for that child. For details on split claims, see "Claims made by more than one person" at the end of this section. If nobody received Family Allowance payments for a child under 19 that you are claiming as a dependant, attach a letter to your return giving the reason. Your claim for each dependent child depends on: · the child's age and income; · whether the child was mentally or physically infirm; and · the number of children you are claiming. How to claim · Calculate your dependant's income. Follow the previous instructions under "Income of Spouse and othcr dependants." · Complete the "Amounts for dependent children" section in the "Personal Amounts" area on page 2 of your return. Use a separate sheet of paper if you need more space. You can claim an amount for your nieces and nephews living in Canada if they depended on you for support and they meet all the other conditions for this claim. Tax tip If you were single, separated, divorced, widowed or living common-law in 1993, you may be able to claim the $5,233 "equivalent-to-spouse amount" for one of your dependants (other than your common-law spouse). See line 305 for details. Children born in 1972 or earlier You cannot claim an amount for a child born in 1972 or earlier, unless the child was physically or mentally infirm. If the child was physically or mentally infirm, you can claim up to $1,540. . If the child had net income of $0 to $2,617, claim $1,540. . If the child had net income between $2,617 and $4,157, calculate your claim as follows: Base amount $ 4,157.00 (1) Enter your child's net income - ________(2) Amount allowable (line 1 minus line 2) ========= · If the child had net income of $4,157 or more, you cannot make a claim. Tax tip You may be able to claim any unused part of your dependant's disability amount on your return. See line 318 for details. Children born in 1973 or later First and second child-You can claim up to $406 for each of your two children. · If the child had net income of $0 to $2,617, claim $406. · If the child had net income between $2,617 and $3,023, calculate your claim as follows: Base amount $ 3,023.00 (1) Enter your child's net income - ________ (2) Amount allowable (line 1 minus line 2) ========= · If the child had net income of $3,023 or more, you cannot make a claim. Note If you claim the "equivalent-to-spouse amount" for a child on line 305, you cannot count that child as a dependant for your claim on line 304. Third and each additional child-You can claim up to $812 for a third child and for each additional child. · If the child had net income of $0 to $2,617, claim $812. · If the child had net income between $2,617 and $3,429 calculate your claim as follows: Base amount $ 3,429.00(1) Enter your child's net income -_________(2) Amount allowable (line 1 minus line 2) ========= · If the child had net income of $3,429 or more, you cannot make a claim. Tax tip If you have three or more dependent children, you do not have to claim them in the order they were born. You can claim them in the order that benefits you most. Example Marijka and Ihor have three children under 18. Tetyana, their oldest child, has net income of $3,500 and the other two children have no income. Even though Tetyana's income is too high for them to get any claim for her, she can be considered their first child. This way they can claim $406 for one of the other two children and $812 for the other (as the third child). Claims made by more than one person You and another person may have to report a part of the Family Allowance received for a child (see line 118). If so, you can both claim the "amounts for dependent children" for the child in the same proportion that you have reported the Family Allowance payments. However, the combined claim made by you and the other person cannot be more than the maximum amount allowed for that child. Example Mavis and Charles separated in May 1993 and did not get back together in the year. They have decided that neither of them will claim the equivalent-to-spouse amount for their 10-year-old daughter. They have read line 118 in this guide. Since Charles' net income for the year was higher than Mavis', Charles has to report the Family Allowance payments for the four months before they separated. Mavis has to report the payments for the rest of the year, because she received them. They can claim the "amounts for dependent children" for their daughter in the same proportion as they reported the Family Allowance payments. They calculate these amounts as follows: Maximum claim for their daughter $406 Amount Charles can claim 4 months/12 months x $406 = $135 Amount Mavis can claim 8 months/12 months x $406 = $271 Note If someone claims the equivalent-to-spouse amount (line 305) for that child, no one else can claim a personal amount for that child. For details, see line 305. Line 305 Additional personal amounts You may be able to claim an "equivalent-to married amount" or an "amount for other dependants" for a person you supported during the year. How to claim Complete Schedule 6 to calculate your claim for the equivalent-to-spouse amount and amounts for other dependants. Attach it to your return. Equivalent-to-spouse amount You may be able to claim all or part of the $5,380 equivalent-to-spouse amount if, at any time in the year, you were single, divorced, separated, widowed or living common-law and you supported a relative. However, to qualify, the relative you supported must meet all of the following conditions. He or she must have been: · a resident of Canada (except in the case of your child); . living with you in 1993 in a home that you maintained; · related to you by blood, marriage or adoption; and . was under 18 when you provided support. If the first three conditions are met, you can also claim this amount for: · a parent or grandparent; or · a relative who was born in 1973 or earlier and was mentally or physically infirm. You cannot claim the equivalent-to-spouse amount for your common-law spouse. Example Paddi lives common-law with Jimmy and their 8-year-old son. Paddi supports them both. Although Paddi cannot claim the "equivalent-to-spouse amount" for Jimmy, she may be able to claim it for their son. If you claim the "equivalent-to-spouse amount" for a dependent child, you have to report all the Family Allowance payments for the year for that child. This is so even if you did not receive the Family Allowance payments. You cannot split this amount with another person. Also, each household is allowed only one claim for the "equivalent-to-spouse amount". Once you claim the "equivalent-to-spouse amount" for a person: · no one else can claim the "equivalent-to-spouse amount" for that person; and · neither you nor anyone else may claim the "amounts for dependent children" or the "amounts for other dependants" for that person.