Keyword Transfer-OV, option « NOT a dependent child » and calculation of Schedule 1-A

Program(s) affected: T1 Document created: 03 20, 2015 Tax year(s): 2014 Document last modified: Version(s): All Problem status: N/A

When I'm using the option « NOT a dependent child » for keyword Transfer-OV in the file of a dependent child, the Schedule 1-A is generated in the processed parent's file. Why is that?

This option ensures that the program disables multiple calculations and credits for the child.

The program assumes that the child has resided during the year with the processed parent. In case of joint custody, for example, the CRA will generally consider that each parent lives with the child while the child is in their custody. This allows the processed parent to claim the credit for child care expenses and the family tax cut (Schedule 1-A). If the child did not reside with the processed parent, you must also use the "T1 - Schedule 1A – Family tax cut" option for the keyword Optimize and select the option "Do not claim" in the parent or the spouse's file, as the case may be, in order not to claim this credit (Schedule 1-A).

Note:

The processed parent must meet all the Schedule 1-A conditions in order to qualify for the family tax cut (e.g. have a spouse on December 31st).