My husband is a Canadian citizen and I became a permanent resident in September 2015. We are both filing our first tax returns. The software has calculated my correct personal allowance at $3,010 (prorated) but it is reporting the full $11,327 as Spousal or Common-Law Amount for my husband - I thought it should only be the $3,010? I had nil income for 2015
If he is a Canadian citizen, and was resident for tax purposes in 2015, he will be entitled to the
full personal allowance.
Thanks - he was resident for tax purposes for all of 2015 so has been given the full personal allowance in the software - but it has also given him credit for Spousal or Common-law Amount at the full amount too. I was only resident for just under 30 days so think it should be the prorated amount.
Interesting. If you reported yourself as an immigrant with an arrival date in November, and had no income, you would expect to have a prorated Personal amount, as you indeed have.
However, your partner was not an immigrant in 2015 ( could not be as he is now a citizen), he is entitled to full credits, including spousal amount if eligible. There is no reason why his credit would be prorated.
My understand is tha the 'Spousal or Common-Law Amount' is the amount of unused personal allowance that I can transfer to my husband to help reduce his tax liability. If this is right, I can transfer $3,010 of unused, prorated personal allowance but the software has transferred $11,327 which I'm not sure is right? Can anyone from TurboTax please comment on / help with this please?