As a Canadian resident, it is important to know all the necessary terms and phrases when it comes to taxes. Two terms that often come up are “eligible child” and “eligible individual.” But what do these terms mean, and how do they affect your taxes? In this blog post, we will cover everything you need to know about eligible children and eligible individuals in Canada.

Firstly, let’s define what an eligible child is. An eligible child is a child who is under the age of 18 and who is either your child or your spouse or common-law partner’s child. This child must also be dependent on you or your spouse/common-law partner for support. If you have a child who meets these criteria, you may be able to claim certain tax credits and deductions.

One such tax credit is the Canada Child Benefit (CCB). The CCB is a tax-free monthly payment that helps eligible families with the cost of raising children. The amount of the CCB is based on factors such as the number of children you have and your family income. By claiming an eligible child, you may be able to receive a higher amount of CCB each month.

Another tax credit that may be affected by eligible children is the Child Disability Benefit (CDB). If you have a child who has a severe and prolonged impairment in physical or mental functions, you may be able to claim the CDB. This benefit is intended to help offset the costs associated with caring for a child with a disability.

Now let’s move on to eligible individuals. An eligible individual is a person who is eligible to claim certain tax credits and deductions, but who is not necessarily related to you. For example, if you have a dependent parent or grandparent who lives with you and is dependent on you for support, you may be able to claim certain tax credits and deductions for them as an eligible individual.

One such tax credit is the caregiver amount. This credit is available to individuals who provide care for a dependant with a physical or mental impairment. The amount of the credit varies based on factors such as the age and health of the dependant.

Another tax credit that may be available to eligible individuals is the Disability Tax Credit (DTC). The DTC is a non-refundable tax credit that helps offset the costs associated with living with a disability. To be eligible for the DTC, an individual must have a severe and prolonged impairment in physical or mental functions.

In summary, understanding the terms “eligible child” and “eligible individual” is important for Canadian residents who want to maximize their tax benefits. By claiming eligible children and individuals, you may be able to receive certain tax credits and deductions that can help offset the costs associated with raising a family or caring for a dependant with a disability. Make sure to consult with a tax professional or the Canada Revenue Agency for more information on how to claim these credits and deductions.