Calculating dependent credits. If my children earn less thank $10,000 is it important to provide their income or can I declare zero if they do their own returns

Forum|Forum|3 months ago
March 3, 2026
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they are students living at home

user17713445337

Level 6

It is essential to report your children's actual income for dependent credits, as your claim amount is reduced by their net income. Even if they file their own returns and earn less than the basic personal amount (approx. $15,000-$16,000+), you must use their net income (Line 23600) to accurately calculate credits, or the CRA may adjust your return.

You cannot declare "zero" if they earned money, even if they are filing their own returns. Their income is "private" from your return. However, for tax credits, the CRA views the household as a unit.

Have your children file their returns first, then use their net income (Line 23600) on your Schedule 5 to determine the credit; refer to this article from TurboTax Canada.