Sunday, December 4, 2011

I work in Canada as a live-in caregiver, can I use the money I remit to the Philippines as tax deductions?

I send money to pay for my child's education. Also, how do I answer the questions in the tax return in regards tm my spouse who does not live here in Canada? Should I just leave the spouse income blank?|||You indicate that you work in Canada, but have you ever filed a tax return in Canada before?





If you have never filed a tax return here before, you need to contact CRA at 1-800-959-8281 to get further information about filing.





I am not sure based on the limited information that you have provided whether you would be required to file here, or with your spouse in the country he resides in, or both.





The second part of your question is much clearer and easier to respond to, and the simple answer is this:





Any money you save/send to your children, regardless of the purpose of that money, is NOT TAX DEDUCTIBLE.





The simple reason for this is solely on the fact that when you give/send anyone money, it is the recipient's choice as to what to do with the funds, hence it is treated as a gift.





If your children are using it to further their education, then they may be receiving education credits on these funds on their own tax returns with proper tuition receipts.





Gifts are not tax deductible, unless such gifts qualify as charitible donations.





Hope this information helps you.





ADDITIONAL INFORMATION @ 1:20 PM EDT





I just reread your question, and if your spouse is NOT a Canadian citizen nor living in Canada, you will most likely have to file a paper return to CRA, and indicate this on your 2006 Income Tax Return.





Even if your spouse has NO income here in Canada, you must take into consideration ALL OF HIS WORLDLY income in order to make a spousal claim. You can't leave the spousal information blank, or your return won't be processed.





The CRA link regarding spousal claims is:





http://www.cra-arc.gc.ca/tax/individuals鈥?/a>





If this is the very first time you are filing a tax return in Canada, then you would have to paperfile your 2006 tax return. First time filers are NOT eligible for netfiling or telefiling.





I hope this additional information helps you.|||Depends on what country you are filing in? USA or Canada?


USA laws indicate that you could claim education deductions. However, beingst you pay it for someone else, you must claim them as a dependent or it is considered as a gift.


If you could write that off in America, then all of the illegals here would be making a fortune on all the $ sent south of the border|||Go and talk to the tax people. They will give you the correct answers for free. Don't ask a bunch of Americans for tax info in Canada. Always go to the source for information. Telephone, of go in person. Best wishes

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