Inputting information into my wife's T5 slip area is increasing the Total Taxes to be paid on my return. Why?

[jprouette]

My income is all on a T4. My wife's is all a T5. Her T5 Box 10 is $11,800 and Box 11 $13,903, which is below the threshold where she needs to pay tax. However, when I enter her T5 information in the slips area (definitely for her, not me), this increases my Total Taxes by $2,600. Why?

[fuzzy · Accepted solution]

Because you wife's net income is more than $11,327, you cannot claim the spouse or common-law partner amount.  Canada Revenue offers this suggestion:

Tax Tip

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-law partner'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.

[jprouette]

Her entire income is that $11,782, but I am not trying to claim the spousal amount. I'm trying to do the two returns separately. But maybe TurboTax is somehow doing that in the background by default? If so, how do I turn it off?