Thanks to commenter David on my recent QuickTax software review, I learned that you can claim your kids and I now need to refile my tax returns for the last two years. It is on the federal TD1 form and is plain as day (now that I look at it). So much for saving money by doing my taxes myself! Mr. Cheap has asked me a few times if I’ve even considered going to an accountant and I now realize that he wasn’t asking so much as he was suggesting. 🙂
The good news is that I researched how to make corrections on tax returns that you’ve already filed and it looks to be very easy. Here is the T1 form you need to fill out. Basically all you have to do is fill out the line number you are changing, the old value, the new value and that’s it. CRA will recalculate your tax return.
As for the child tax credit you get a $2,000 deduction amount per child starting in 2007. This amount goes up each year and was $2,089 for 2009 tax year. It applies to kids who are under 18 at the end of the tax year.
In my case I had 1 kid during the 2007 tax year and then 2 kids for both the 2008 and 2009 tax years. Please note that I’m counting my kids for multiple tax years – I don’t have 5 kids! I believe this works out to a bit more than $300 per kid per year which means that I will get back $300 for the 2007 return, $600 for the 2008 return. A good payoff for a fairly small amount of fixing.
I had researched writing off dependents before but I had only found this article about dependents which clearly doesn’t cover my situation and made me think that you couldn’t claim your kids.
If you live in the United States and are looking for the relevant information then check out this article called Amended tax return.
How about you guys? Did anyone else cheat on their old returns and need to correct them?
Want to learn more about RESPs? Buy The Book:
The RESP Book: The Simple Guide to Registered Education Savings Plans
Everything you need to know about RESPs.