How does Marital Status affect your federal taxes


While filing the income tax returns marital status plays a vital role in Canada. There are more than 110 benefits, protections and rights available on the basis of marital status.

Canada Revenue Agency asks the tax payers to let them know the updated marital status in between the year. This would help them availing benefits like Working Income Tax Benefit (WITB) and even Canada Child Tax Benefit (CCTB). The agency has to be informed latest by the end of the month in which the change in the status takes place.

Every couple falling under the low income thresholds limit get huge tax benefits. They may get $510 per person to $1019 per couple on a quarterly basis. This kind of a tax benefit reduces the annual tax burdens for the working class.

The Canada Child Tax Benefit (CCTB) is a monthly payment provided to the applicants who are bringing up many children. This payment is non-taxable and is applied for children below 18 years of age. Families with more than three children get $108 for every child.

The information can be passed on either online or through filling Form RC 65 and sending it across to the Agency.

All those who are legally married are called spouses. Those who have been living together for 12 months continuously are called common law partners.

In both the cases the income of has to be entered in the form. In case it is zero that also has to be mentioned. In spite of this the partner has to file a return separately. The agency after receiving the information deducts the net income of the partner. Finally the benefits or credits are calculated.

Common law partner is also the person looking after your child either since birth or after adoption. The person having custody of your child on whom the child is fully dependant is also the common law partner.

The information regarding SIN of Common Law partner has to be entered on page 1. Line 213 includes the amount of Universal Child Care Benefit payment.

The amount of Universal Child Care Benefit repayment included on line 213 of his or her return.

After separation alimony when given is deducted from the taxable amount. For the receiver it becomes a taxable income.

One has to file the returns with a very great care. It requires a lot of attention to save one from paying huge amount of taxes.