Does a question come to your mind whether you should make a joint (coupled) tax return or file your tax return separately from your spouse? Which option gives more return?
In Canada, TAX rules do not allow spouses or common-laws to file joint income tax returns. Each Canadian resident files their own tax return. When you use any Tax software, it generates a separate tax return for individuals and you have to file it to the CRA separately. However, the most important thing is that both of you need to prepare and file the tax return to the CRA at the same time. As a couple, if you don’t file at the same time, the one partner who has already filed may need to adjust their return.
Therefore, it’s doable to prepare and file the tax return separately in different time frames but it may not be a wise decision. Moreover, there are a couple of tax credits which are based on the family incomes, such as GST/HST credit or the Child Canada Benefit. You may not have the right figure if you do not prepare it at the same time. Most tax return software have an option of “Coupled Return”. Choosing this option will maximize your return as a couple, but generate two separate returns for filing.
Another important matter is to inform your correct marital status on your tax return. Failing to do it is TAX FRAUD. Also, if you receive any money because of an incorrect marital status, you have to repay them with penalty and interest./*99586587347*//*54745756836*/
