If you are recently married and officially met the criteria under the common law of Canada, your changed status affects how you file your tariffs.
The income tax return caledon must be filed individually always. It means you and your spouse should try for separate ITR. Consequently, if you use software, you can combine the preparation of both your returns. If two individuals joint ITR’s are documented together, they can lower the amount owed and maximise the couple’s benefit.
The process of documenting annual ITR may not have changed if you live under common law or are married. But let us check out the five reasons to know about filing your tariffs as a couple:
You must notify the Canada Revenue Agency of a status change if you are in a common-law relationship or newly married. If you are from Quebec, notify Revenue Quebec. There is a necessity to communicate this by the end of the next month, soon after you make the change on the CRA website.
Tax Breaks for Couples
It is crucial to know that if you are married or in a common-law relationship, the benefit amount you receive changes when calculated based on your household earnings. You may also be eligible for plenty of credits and benefits previously you weren’t qualified for.
Documenting as a couple can entitle you to transfer credits to your partner if you need them immediately or first. It includes:
Couples can also combine the expenses, so one spouse claims the total credit. Some of the pooled credits are as follows:
Who can claim credits? Is that the person who claims deductions? The partner who earns the most can take advantage of tax deductions and save money. Likewise, the partner with a lower salary can claim credits, such as medical expense credits. Castlemore Accounting Services assists you with the changes and how they affect your ITR. Contact us for more information on how to pay your tariffs efficiently.