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Level 3
March 13, 2025
Question

Disability tax credit transferred to parent

  • March 13, 2025
  • 1 reply
  • 6 views

Profile automatically transferred part of the disability tax credit to the parent.  The child is over 18 and didn't have much income, due to an unrelated injury and received workers' compensation for it.  I don't want it transferred and there was no warning or indication that this had been done.  The return has been efiled and of course, CRA has disallowed the credit.  I think that Profile should have a warning that this is happening and it should be signed off by the preparer.  Can this be added to future Profile?

So, now I want to refile.  The express NOA is available.  Do I have to wait until the actual NOA is received?

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1 reply

Level 5
March 14, 2025

hi,

trying to understand why you wouldn't want it transferred? the transfer is only in excess of what the child needs to bring his taxes to zero. unused credit is lost, so why would you not want the transfer?

825752Author
Level 3
March 14, 2025

I didn't want it transferred, as per the CRA, the dependent must have relied on the taxpayer for some of the basic necessities of life.  The dependent did not have this situation.  The dependent did have income, but part of it was workers' compensation and thus, not included in taxable income.  Profile should have a warning that needed to be reviewed before automatically transferring this.  I think this should be addressed by Profile.  Does anyone have a response to my refile question?

 

Level 2
March 15, 2025

You have to wait until you receive the notice of assessment to refile.

Why don't you remove that individual as a dependent from their parents return since they are over 18? That will unlink them from receiving tax credits from their child in the future.