Basic Personal Amount of spouse (30300) if she comes to Canada later

[nickgryg]

Hello,

I tried to follow Federal non-refundable tax credits for newcomers and emigrants.

I came to Canada on September 1st, 2019 and my BPA is: 122 / 365 * 12069 = 4034.02

My wife came on October 15th, 2019 and her BPA is: 78 / 365 * 12069 = 2579.13

My wife's income for the 2019 year was 0, so I would expect that I need to put 2579.13 to "Spouse or common-law partner amount" (30300) in my T1. Turbotax fills 4034.02 to "Spouse or common-law partner amount" (30300), like my wife came to Canada with me.

Is it a correct calculation? What should be filled 30300 in case when spouses came to Canada separately? Please advice.

[TurboTaxAllen · Accepted solution]

Hello,

The claim for Basic Personal Amount and the Spouse or Common-Law Partner Amount for newcomers to Canada can be confusing because it is not explained fully.

A newcomer’s non-refundable tax credits are affected by the income they earn prior to coming to Canada and Canadian deduction claims, see “Part of the year that you were not a resident of Canada” in the reference link below. For part of the year that a newcomer was not resident of Canada, if a newcomer has no income from all sources or if Canadian sourced income is 90% or more of their net world income, then they can claim the remaining federal non-refundable tax credits in full.

So, using your case as an illustration, you had declared that you had foreign sourced income prior to coming to Canada that was greater than any Canadian sourced income you earned before coming to Canada by more than 10%, i.e prior to coming to Canada, CAN income < 90% of (CAN Income + Foreign Income). Therefore you are not entitled to claim the remaining federal non-refundable tax credits in full.

An important note, the Spouse or Common-Law Partner Amount claimed on your income tax and benefit return is NOT the Basic Personal Amount claimed on your spouse’s income tax and benefit return less any Canadian source income that they received after coming to Canada. The Spouse or Common-Law Partner Amount is a separate defined value in the Income Tax Act under subsection 118(1) of the ITA. Your claim of the Spousal Amount on line 30300 is based upon the following factors:

1) your spouse’s income declared on line 23600 in their income tax and benefit return, and

2) the Spouse or Common-Law Partner Amount, as well as whether your spouse is dependent because of a mental or physical infirmity and is eligible for the Canada Caregiver Amount.

The latter amount is limited by ratio used in determining your entitlements to Non-Refundable Tax Credits, meaning that if you were entitled to 122/365 credit’s value then your claim for the Spouse or Common-Law Partner Amount value will also be limited to 122/365 of that value, which will be reduced by your spouse’s income reported on line 23600 of their income tax and benefit return.

We hope this clarifies your questions concerning Spouse or Common-Law Partner Amount and whether TurboTax is reporting these amounts correctly.

For your reference from the Canada Revenue Agency:

• Federal non-refundable tax credits for newcomers and emigrants. https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving...
• Line 30300 – Spousal or common-law partner amount https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...

[aswinmm]

Also, I need your expert opinion.

I have been a PR since 2022 and sponsored my wife in 2023 to become a PR as well.

She landed in July 2023 for the first time as a PR and had $0 worldwide income from January 2023 to July 2024. Her global income for 2023 between January 2023 to the date she landed in July 2023 is CAD 625 dollars.

Can I claim the “Amount For Partner” in line 30300? If yes, how much?

I appreciate your response.

[TurboTaxBrenda]

No you can't claim the Canada Care Giver Amount- Your spouse would need to be living with you and your spouse or common-law partner would have to have an impairment in physical or mental functions.

Thank you for choosing TurboTax.