Turbotax says：Your claim for your spouse or common-law partner may be increased by reporting your spouse or common-law partner's dividend income on your return. But it doesn't instruct me how to do that? Where can I start to do the dividend transfer?
If you and your spouse are preparing your returns together, you can enter in the t-slip with the dividends on your spouse's return, and then enter the percentage that is to be claimed on your return at the bottom. The amount will automatically be split between you based on the percentage you have entered.
If you and your spouse are preparing your returns separately, you would enter the slip-on both of your returns, entering the percentage on the bottom of the slips on both.
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Thank you. We file the tax return together. If there are other types of income on my spouse's T3 and T5 slips as well as dividend, e.g. interest and capital gain, can I report only the interest and capital gain on her return and leave the dividend box blank on her T3/T5 slips, then add up all her dividends, and create a new T5 or T3 slip on my return to report the sum of her dividends in my name?
@annapengfamilybrings up a very valid concern. They correctly realize that a "mixed" T3 with capital gains/interest cannot be allocated in the way proposed by TurboTax. Why is this so complicated? Is TurboTax going to warn me if there is no increase in the spousal tax credit, which is a criteria required to do the transfer? Can you clarify if the dividend transfer is allowed both federally and provincially?
Are spousal dividend transfers handled by TurboTax Premier?