Meandering through the ages... some thoughts on being a teen and tax..
Does the age of majority vary depending on what it is that is being authorized?
Does it vary depending on whether it's the age of consent for to be employed and at what rate, or to contract to purchase a car or a house? Or for sex? or drinking, or driving...
How about for signing your own tax return?
Or opening an RRSP?
Did you know about a directive in the federal budget in 2013 about representation and uptake on the RDSP?
Here's what CRA has to say about how they are handling the challenges of low uptake on the RDSP...and there's some stuff about youth in there too...
http://www.cra-arc.gc.ca/gncy/bdgt/2012/qa08-eng.html#_Toc320860289
There are significant variances in how legal representation is handled across the jurisdictions.
In December 2013, a Senate Committee was authorized to study this issue.
A report is due by March 31, 2014.
http://rdsp.com/2013/12/04/senate-committee-authorized-to-study-the-ability-of-individuals-to-establish-a-registered-disability-savings-plan/
I called CRA today to ask about what do they consider to be the age at which a child no longer has a legal guardian. Their internal documents, for which the agent couldn't find any external sources is that the legal age of consent is age 16.
So, even though a child doesn't reach adult for many of the programs and services offered until 18 or 19, at age 16 they can sign their own tax return.
Did you know that a child can begin accumulating RRSP room as soon as they start working, which could be at a young age, so, file a return for your babysitters, and your lawncutters and your paper deliverers to start their RRSP room as soon as they start working.
They can't necessarily employ their RRSP room to open an RRSP until their bank is willing to allow them to open an account, but when they can open an account, they'll be ahead of the game with room to contribute from having worked from a young age.
Apparently the banks can't allow someone who is too young to open an RRSP based on the age of majority which is a provincial/territorial guideline and will vary by jurisdiction.
If you have a youth transitioning to adult, and they have a disability or infirmity, this web page has links to useful information.
