Can Married Couples File Taxes Separately in Canada
Updated on January 28, 2025
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Table of Contents
Can married couples file separate tax returns in Canada?
No. In Canada, you’re unable to file your tax return jointly with your spouse. The Canada Revenue Agency (CRA) requires each individual to file their own individual tax return regardless of marital status.
Instead, the CRA requires you to report your spouse’s financial information on your individual tax return, which can allow couples to receive tax benefits.
Does marital status have an impact on taxes?
Yes, marital status has a significant impact on taxes in Canada. It mainly affects how taxpayers file their taxes. Additionally, there are specific tax breaks for certain statuses, such as married or common-law.
It is also important to ensure accurate reporting of your marital status to the CRA for compliance and maximizing your tax benefits.
What tax benefits are available for married couples in Canada?
Here are some of the available tax breaks for couples in Canada:
- Canada Child Benefit (CCB): Married couples with children may be eligible for the CCB based on their combined income.
- GST/HST credit: To help individuals and families who are low or mid-earners.
- Working Income Tax Benefit (WITB): This also assists families with low-income households.
- Spousal tax credit: A non-refundable tax credit of up to CAD$15,705 (2024) for the partner who earns less. This is in conjunction with the basic personal amount.
- Capital gains splitting: The option of splitting profits or investment dividends between you and your spouse to lessen your tax burden. The splitting ratio will be based on the contribution amount of each spouse.
- Transferring tax credits: You can transfer certain credits to your spouse if you don’t use them, such as tuition, disability credit, or pension income.
- Combining tax credits: On the other hand, you can combine certain expenses, such as medical expenses and donations, to qualify for tax credits.
- Spousal registered retirement savings plan (RRSP): This is a combined retirement plan for your spouse that allows contributions even if you’re past 71, but as long as your spouse has not reached 71 yet.
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Can common-law couples claim tax benefits for married couples in Canada?
Yes, common-law couples in Canada can claim nearly all the same tax benefits and credits as married couples. The Canada Revenue Agency (CRA) recognizes common-law relationships for tax purposes, so if you meet the criteria, you are entitled to similar tax advantages as married couples.
When can a relationship be considered common law?
The Canada Revenue Agency (CRA) recognizes a common-law relationship if the couple lives together in a conjugal relationship for at least 12 months. Bearing a child would immediately consider them common-law.
What information about my spouse do I need to report on my tax return?
Here are the information you’ll need to include from your spouse on your tax return:
- Personal information: Their name, social insurance number (SIN), and date of birth.
- Income information: Their total income from all sources (including foreign income) and net income.
- Deductions and credits claimed by your spouse.
What if one of the spouses has a significantly high income?
It doesn’t really matter as both your incomes are added to form the family income. The CRA usually does not allow deductions to be passed on to the other spouse. However, a lower-income spouse is expected to claim the childcare expenses.
Can I file my US tax return jointly with my spouse here in Canada?
Yes, if you are a US citizen or resident, you may file a joint US tax return with your spouse, even if you both live in Canada.
If your spouse is a Canadian citizen, you can still file jointly by making an election to treat your Canadian spouse as a US tax resident. This allows you to file a joint return but also requires your spouse to report their worldwide income to the IRS.
When do I need to file my individual tax return in Canada?
In Canada, you need to submit your annual tax return to the CRA by April 30 each year. When filing individually, the process is much like filing as a single taxpayer, but the details in your tax return will differ.
If you or your spouse is self-employed, you can submit your tax return by June 15, but any taxes owed should still be paid by April 30.
How can I let the CRA know that I’m newly wedded?
Upon being married, you need to communicate an updated status for your tax filing to the CRA by the end of the month after your status changes through the CRA website.
Here are the steps to update on the CRA website:
- Log in to your CRA MyAccount portal.
- Click on “Personal Profile.”
- Click the Update button in the Marital Status section.
Alternatively, you can call the CRA at 1-800-387-1193 and inform them over the phone. If you wish to share the update via mail, you must fill out the RC65: Marital Status Change form on the CRA website here. Send the form to one of the tax centers closer to you.
For Revenu Québec, call 1-800-667-9625 and inform them over the phone. You may use the “Change in Conjugal Status” form available here.
How does a divorce or separation affect my taxes?
Divorce or separation can impact your benefit eligibility, deductions, and credits. The CRA or Revenu Québec will accept divorce as a formal separation for married couples in Canada.
For common-law partners to separate, you and your partner must stay apart for at least 90 days. Benefits like the Canada Child Benefit (CCB) may be split in shared custody cases.
When filing returns for the year couples get separated, income for the spouse or common-law partner is considered in two parts, one before separation and the other for the remainder of the year.
