Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 30, 2019 4:02:36 AM

Where do I deduct money on the Tax Return to transfer to my spouse and do I just add it to my spouse?

0 4 968
1 Best answer
New Member
Oct 30, 2019 4:02:41 AM

To do this you have to be self employed.  If you are, and your wife actually did perform work for your business, you would be able to include your wife as a subcontractor and your wife would include the income on her return as self employed income.  If the amount is less than $3500 your wife could include it as casual income (other employment income).

You do need to be able to demonstrate that your spouse did indeed perform a duty for your business, and the compensation needs to be reasonable.  You can't claim paying her $50,000 for sweeping a home office once a week.

If the work performed is actually significant in time spent then you need to look into registering a payroll account and then deducting payroll deductions and remitting them on a regular basis.  

All this is moot if you are not self employed.

4 Replies
Level 6
Oct 30, 2019 4:02:38 AM

Are you referring to Pension splitting? Otherwise, what you are suggesting is not permitted by CRA.

New Member
Oct 30, 2019 4:02:39 AM

I am talking about smart tip -" Consider paying your spouse or child a reasonable wage for their services"

Level 6
Oct 30, 2019 4:02:40 AM

That is a tax planning strategy that is implemented outside your tax returns.

New Member
Oct 30, 2019 4:02:41 AM

To do this you have to be self employed.  If you are, and your wife actually did perform work for your business, you would be able to include your wife as a subcontractor and your wife would include the income on her return as self employed income.  If the amount is less than $3500 your wife could include it as casual income (other employment income).

You do need to be able to demonstrate that your spouse did indeed perform a duty for your business, and the compensation needs to be reasonable.  You can't claim paying her $50,000 for sweeping a home office once a week.

If the work performed is actually significant in time spent then you need to look into registering a payroll account and then deducting payroll deductions and remitting them on a regular basis.  

All this is moot if you are not self employed.