If you are paying for the essentials of life such as food and shelter for your parent and if that parent is also eligible and approved for the disability tax credit, you may want to file for the disability tax credit on their, or your, income tax return. Recently, I was asked how to find the place to enter the information about transferring the disability tax credit for adult dependants to their caregiver on the tax return forms using StudioTax 2015.
Caution: Make Sure Your Tax Software Is Approved for NETFILE Before You Complete Your Taxes
NOTE: As of January 31, 2016, unfortunately, StudioTax 2015 like most tax preparing programs is not yet approved for NETFILEing your return. If you want to take a “test run” at calculating how much tax you owe, however, you can download the current version for free and then download the update later once the program is approved. I’m confident StudioTax will be approved in time but they will have to adjust the software with the tax filing license number, etc, once they receive it, so you will have to update your version before filing.
How to Open the Federal Worksheet in StudioTax 2015 to Claim Line 318
StudioTax does not automatically open all of the forms that you might possibly need to complete your annual tax return. Instead, it keeps them in reserve and you can choose to open the ones you need. Here’s how to find the Federal Worksheet form.
Selecting a New Form in StudioTax
- Along the top of the StudioTax window is a list of icons.
Click on the one called: Forms
- At the top left side of the new window, StudioTax will display a list of Federal Forms.
Scroll down to find the form: Federal Worksheet
and highlight it.
- Click on the down facing arrow below that list to put the Federal Worksheet into the box titled: Added Forms
- Click on the OK button.
- The Forms window will close.
UPDATE: One reader advised they also received the following information from StudioTax’s help desk: “”Use the Dependants button to enter the parents as dependants, set the status as disabled and claim the disability credits.” I hope this will help others and thank you to the person who provided this helpful insight!
Opening the Federal Worksheet Form in StudioTax
- Now back on the main StudioTax page, in the Forms box on the left side of the screen, find the new listing for: Federal Worksheet
- Click on it to open it.
- As you read through the Federal Worksheet form, you will find the section that includes Line 318 for the Disability Tax Credit.
- Information from the CRA website about transferring the Disability Tax Credit and Line 318.
- How To Download and Install StudioTax 2015
Do you have a dependent disabled parent living in your home who is eligible to transfer some of their DTC to you? Is this the way you claim your credit? Please share your insights into the murky mists of the CRA’s requirements with a comment.