Medical expenses - claim net of 3% limited to maximum $10,000 and dependency must be proven in the year the child turns 18 years of age!!
Claim on Line 330 if child born in 1990 or later - child under 18 in 2007 (for 2007 Tax return)
Claim for dependents net of 3% of their net income to a maximum $10,000 if born in 1989 or earlier - child turned 18 in 2007 (for 2007 Tax return)
Registered Disability Savings Plan
Capital can't be locked down on plans where child is an adult when the plan is initiated.
Adult may currently opt out of their RDSP by voluntary de-certification for Disability Tax Credit. De-certification will mean loss of bonds (maximum $20,000) and grants (maximum $70,000) which must be repaid if not vested, but could access capital (maximum ($200,000) and income earned without waiting till age 60.
An RDSP becomes asset of the beneficiary and estate planning should be considered. Consequences of dying without a will in each province/territory are different and should be considered by the beneficiary and/or family of the beneficiary of an RDSP. If family have concerns about competence to create a will or about administering an RDSP, contact Planned Lifetime Advocacy Network (www.plan.ca) for assistance.
If you heard that IQ is a criteria for disability benefits in BC, that's not quite the story
... here's the scoop:
IQ 70 is not a criteria for receiving disability benefits. Disability benefits are granted in a wide range of situations including developmental, mental health and physical.
In order to receive disability benefits a client would need an assessment by a physician or other qualified health professional who can attest to and describe how their patient meets the criteria under the Employment and Assistance for Persons with Disabilities Act.
The issue of IQ 70 relates to eligibility requirements for adult community living services.
It is based on existing policy and does not change how client eligibility for adult community living services is assessed. IQ 70 was incorporated as a legislative regulatory amendment in the Community Living Authority Act based on a court decision the criteria must be legislated.
Disability Supports Deduction
If your 'youth in transition starts to work, they may be able to claim a significant number of medical expenses as an expense instead of a credit. Check out form T929 for the Disability Supports Deduction on Line 215.
Why would it matter whether it's a credit or a deduction? Deductions reduces net income before you calculate tax payable. There is no 3% threshold before you qualify, it's on every dollar. There is no carryforward and no ability to transfer the amounts paid though. There is also no ability like there is with medical expenses to claim for any 12 months that end in the taxation year.
The medical expense tax credit is reduced by 3% of net income and then the tax credit reduces tax payable on net income. Medical expenses paid by a third party may be claimed on Line 331. Medical expenses are claimed after a 3% threshold is exceeded and there is a maximum threshold over which everything is claimable. You may stagger the claim to take advantage of income in one year or another depending on which 12 months that end in the year are claimed.
Now that you are totally confused, try claiming the deduction and alternatively, try claiming the medical expense using tax software to see the difference on the tax payable line.
WCB is on the lookout for safety of young workers...
The young worker safety movement is growing. See the stories...
Get on board at www.raiseyourhand.com.
NEW!! Planning a family outing that includes BC Parks this summer?
Check out BC Parks documentation required for reduced campsite and parking fees for persons with disabiities! Includes children in At Home program!