How does a higher income spouse claim a lower income spouses dividend income?

[margaret-huising]

Is another form needed?

[TurboTax-Terry]

Use the split with spouse option at the top of the slip. You must claim all of the Dividends on your return. If there are other amounts reported on the slip you will need to create a new T5 for only the dividends. The outcome will depend on your particular tax circumstances and the software is making a general recommendation. You must be able to increase a "spousal amount" at Line 303 to allow for the transfer.

[johndron]

I have tried to do that multiple times and in various ways, including using the F2 over-ride or entering a new T-slip!  The software will not let me enter a number  for a % to spouse.  The F2 over-ride changes the % number on the T-slip input form but does not change the numbers on the T1 General or schedules!  What is going on?!

[TurboTax-Terry]

In some cases, it may be better for you to report all the taxable dividends your spouse or common-law partner received from taxable Canadian corporations. You can do this only if, by including the dividends in your income, you will be able to claim or increase your claim for the spouse or common-law partner amount (line 303 on Schedule 1).

If you use this option, you may be able to take better advantage of the dividend tax credit. Do not include these dividends in your spouse's or common-lawpartner's income when you calculate claims such as the spouse or common-law partner amount on line 303 or amounts transferred from your spouse or common-law partner on Schedule 2.

Change the percentage reported by spouse on the applicable reporting slip once you have created the original information under your spouses name.

[johndron]

How do you actually input the transfer?! The % to spouse box on that T-slip input form won’t allow a change unless you do a F2 override.  When I tried that, it didn’t reduce my spouse’s income showing on my return, but it increased mine and showed I owed tax!  When I had ran the review process, it said I should transfer my spouse’s dividends so I could claim the spousal amount.  But there doesn't seem to be a way to do it.....  Also, does it apply to dividends on both the T5s and the T3s or just to T5s?

[TurboTax-Terry]

Use the % box above the "Blue 0.00"

[johndron]

Tried that - doesn’t work!  Nothing works!!

[TurboTax-Terry]

If the software is not taking a value of "0", enter the original slip under the recipient spouse's tax return. Attach a letter (or mail under separate cover) for the transferring spouse that all of the dividends have been claimed by their partner.

[TurboTax-Terry]

Your other option is to simply over ride the % in Blue by using the "Edit" > "Forms Override" and changing the amount. Either choice will work.

[johndron]

I tried the over-ride option days ago but found that the effect doesn’t ripple through to where it should...!  I give up!  I doubt that the benefit would be worth the hassle of getting the software to do it right.  The taxable amount of the dividends exceeds the spousal deduction so it would come down to whether the dividend tax credit would be enough to balance additional tax owing vs. tax saved by increasing the spousal amount.  It’s not worth the effort and frustration at this point to try to sort it out!