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825752
Level 1
posted
‎March 13, 2025 03:10 PM
last updated ‎March 13, 2025 3:10 PM

Disability tax credit transferred to parent

Profile automatically transferred part of the disability tax credit to the parent.  The child is over 18 and didn't have much income, due to an unrelated injury and received workers' compensation for it.  I don't want it transferred and there was no warning or indication that this had been done.  The return has been efiled and of course, CRA has disallowed the credit.  I think that Profile should have a warning that this is happening and it should be signed off by the preparer.  Can this be added to future Profile?

So, now I want to refile.  The express NOA is available.  Do I have to wait until the actual NOA is received?

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6 Comments 6
maha1
Level 5
‎March 14, 2025 08:15 AM

Disability tax credit transferred to parent

hi,

trying to understand why you wouldn't want it transferred? the transfer is only in excess of what the child needs to bring his taxes to zero. unused credit is lost, so why would you not want the transfer?

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825752
Level 1
‎March 14, 2025 10:41 AM

Disability tax credit transferred to parent

I didn't want it transferred, as per the CRA, the dependent must have relied on the taxpayer for some of the basic necessities of life.  The dependent did not have this situation.  The dependent did have income, but part of it was workers' compensation and thus, not included in taxable income.  Profile should have a warning that needed to be reviewed before automatically transferring this.  I think this should be addressed by Profile.  Does anyone have a response to my refile question?

 

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Tracy at PBK
Level 1
‎March 15, 2025 07:18 AM

Disability tax credit transferred to parent

You have to wait until you receive the notice of assessment to refile.

Why don't you remove that individual as a dependent from their parents return since they are over 18? That will unlink them from receiving tax credits from their child in the future.

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825752
Level 1
‎March 15, 2025 10:34 AM

Disability tax credit transferred to parent

I would like to remove them - but I don't know how. Do I just delete them from the information section? The only thing I can find is under options, and that doesn't allow individual returns to be unlinked, it applies to all of the tax returns and I have some that I want to have linked for tuition transfers.

 

I have the express NOA - do I have to wait for the actual one?

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Tracy at PBK
Level 1
‎March 15, 2025 01:07 PM

Disability tax credit transferred to parent

You have to wait until the actual NOA is released and then you can refile. Remove the dependents information from the dependent screen so it doesn't pull from that person's return. That will unlink them.

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825752
Level 1
‎March 17, 2025 09:57 AM

Disability tax credit transferred to parent

Ok - I will try that.  Thanks for your help.

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