The Ontario tax reduction for dependants is automatically calculated in Wealthsimple Tax. Here's a comprehensive guide on how it works and how to ensure it's correctly applied:
Automatic calculation:
- Number of dependant children (line 60969 of the ON428)
- Number of dependants with a physical or mental infirmity (line 60970 of the ON428)
Eligibility based on relationship status:
- Single, separated, divorced, or widowed:
- Ensure your dependant is correctly entered (see steps below)
- With a partner (linked profiles):
- Applied to the higher income partner
- If incomes are equal, appears after optimization
- With a partner (unlinked profiles):
- Appears only if you're the higher income partner
- Requires partner's income reported in the Your Partner section
How to ensure dependants are included:
For a child under 18:
- Navigate to the Your Dependants section
- Answer "Claim, if eligible" to "Claim the Ontario amount for dependant children?"
- If the child has a mental or physical infirmity, answer "Yes" to "Did [your dependant] have an infirmity or disability?"
For a disabled partner:
For other dependants:
- In the Your Dependants section, indicate if they have an infirmity or disability
To override calculated claims:
- Add the Ontario Tax Reduction (Line 60970) Override section to your profile
- Enter your number of dependants with a mental or physical infirmity
To choose not to claim the Ontario tax reduction:
- In the Your Dependants section, answer "Do not claim" to "Claim the Ontario amount for dependant children?"
Important notes:
- Line 73 of the ON428 shows your Ontario tax
- Line 80 of the ON428 shows the amount of reduction for which you qualify
- Having Ontario tax doesn't guarantee qualification for the reduction
- The override only works if you otherwise qualify for the tax reduction
- For dependents over 18, only line 60970 (infirm dependants) will populate
Remember:
- Keep all relevant documentation for your dependants
- Review your Ontario tax calculation on your ON428 in the Summary > Documents section
If you need help locating these sections in Wealthsimple Tax, please contact Wealthsimple support. For questions about your eligibility for the Ontario tax reduction, consider consulting with a tax expert.
Comments
0 comments
Please sign in to leave a comment.