If my spouse owes taxes and I am getting a re fund, can I file at the same time but use my refund later to pay her taxes owing?

The short answer is no. Turbo Tax does recommend you prepare your spouse or common-law partner’s return at the same time as your own return, as this allows TurboTax to optimize deductions and credits, but you can’t transfer a refund to pay your spouse or common-law partner’s balance owing.

 

 There are other options available such as:

• Income splitting is only available to certain taxpayers:
  • not the general public. It is limited to shareholders who are children, and those with eligible pension income. This is a strategy whereby income from one spouse, typically taxed at a higher rate, is shifted to the other spouse. Doing so reduces the rates paid by the higher-earning spouse while increasing the rates paid by the lower earner.
• Claim spousal tax credit
  • This non-refundable tax credit helps lessen the tax burden of the higher-earning spouse. There is a federal and provincial amount that may be claimed. The higher-earning spouse can claim this amount if the higher-earning spouse supports the lower-income spouse and the lower-income spouse’s net income is under $11,809.

For more information please refer to this TurboTax article:

• What to Do if One Spouse Owes Money and the Other Does Not

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