Do sponsored parents qualify as eligible dependents under CRA?

[nush78l]

Once parents are sponsored do they have to file separate tax returns, or do they qualify as dependents?

The reason I ask is, to find out:
1) Whether sponsored parents need to file separate tax returns?
2) Whether sponsored parents meet the definition of eligible dependents under the medical expense tax credit guidelines with CRA?
3) Whether any medical expenses incurred by sponsored parents can be claimed under the sponsor's tax return?

 

[Rob_TO]

Once parents are sponsored do they have to file separate tax returns, or do they qualify as dependents?

The reason I ask is, to find out:
1) Whether sponsored parents need to file separate tax returns?
2) Whether sponsored parents meet the definition of eligible dependents under the medical expense tax credit guidelines with CRA?
3) Whether any medical expenses incurred by sponsored parents can be claimed under the sponsor's tax return?

1 - Yes, they should file their own tax returns once becoming a PR even if they are not making income. Filing tax returns is needed for future PR card renewals or citizenship applications. They can still be listed as dependents on your own tax return, even if they file their own return.

2 - If they are living with you AND they have a real impairment, then you can claim the Caregiver amount for them. You will need a doctors assessment of the specific physical or mental impairment they have.
https://www.canada.ca/en/revenue-ag...credits-expenses/family-caregiver-amount.html

3 - I think so but not sure on the details.

There is tons of info online on how to claim parents as dependents on taxes. Just do a quick google search and you'll get lots of info from various sources.

 

[nush78l]

Thanks Rob_TO.

In the tax return do you have to include income from their home country, such as interest from deposits? or only income from Canadian sources?

 

[Rob_TO]

Thanks Rob_TO.

In the tax return do you have to include income from their home country, such as interest from deposits? or only income from Canadian sources?

After they become PRs and residents of Canada, they will need to report all income including worldwide income from home country.

 

[Wonderland_1010]

Thanks Rob_TO.

In the tax return do you have to include income from their home country, such as interest from deposits? or only income from Canadian sources?

For claiming dependent parents medical expenses on your personal taxes, there must be certain regulations to be followed first before claiming dependents:

1. Your parents must live in Canada for period of time with you.
2. Only medical expenses that aren't reimbursed by insurance can be claimed only.
3. If the medical expenses exceed over 3% of your total income, then it will have a difference in your tax refund or owing. If less than 3%, then it won't have any effect.