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New Member
posted Feb 23, 2024 9:56:52 AM

When I entered my partners T4, my balance due went up and she is getting a refund. Anyone know why this is? We are common law.

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Moderator
Feb 23, 2024 10:53:45 AM

When you get married, or start living together under a common-law arrangement, it may impact your tax situation. Some of the changes occur immediately (e.g., your eligibility for the GST/HST credit) and other changes impact you when you file your tax return.

 

  • Your entitlement to the GST/HST credit changes since it is based on “adjusted family net income.” Your adjusted family net income usually increases when you become married or common-law, so you might find that you no longer receive the GST/HST credit. If you are still eligible for the credit, only one of you will receive it, even if you were both receiving it before.
  • If you have children, your entitlement to the CCTB and CWB changes, respectively, since these are also based on your adjusted family net income
  • When you’re completing your tax return, you’ll need to provide information about (your spouse or) common-law partner, including (his or) her net income, for certain credits to calculate properly
  • If you or your partner’s income is less than $15,000 (2023 number), the other person will get a tax credit called the (spouse or) common-law partner amount

You must notify the Canada Revenue Agency when your marital status changes. You can do this through My Account, by phone, or by filing form RC65. You must also accurately report your marital status when filing your tax return — even if you don’t really feel like you’re living common-law.

 

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