| How marriage affects your taxes - Click HERE for Original Thread |
| RSready |
If you're looking for some sick marriage joke because of the thread title, I'm sorry to disappoint. Anyway, on to my problem.
So I did my taxes last night with QuickTax and I filled everything out except for where it asked for my spouse's income. We got married in August, no kids or dependents or anything.
So before I put in that number I was calculated to get a $3,600 return. I went back and put her income in and it recalculated it so that I was only receiving a $600 return.
My wife did the same thing (did all her taxes except put in my income) She was set to pay about $500. She put my income in and all of a sudden she had to pay about $3,500.
Does this make any sense? Just because we're married, the gov't is going to take an extra $6k? I talked to my parents (who both make much more than my wife and I) and they don't even put each other on their own taxes. So I'm wondering if I even have to...
Are there any tax gods out there who have an answer for me? (I already bought QuickTax so I don't really want to go to an accountant now)
Thanks in advance! |
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| GOT BOOST |
No, there is no way around it.
The last time I did my taxes I fell into the same issues. I called up CRA..they were about as useless as tits on a Bull and they provided me with wrong advice. They told me to leave the issue and when the notice of assessment is done if there are any errors they will catch it then.
So I left her income out I get my notice of assessment in May with my small few hundred dollar refund. :rolleyes:
Everything is fine and dandy.
Early Dec I get a notice of reassessment saying I owe them $2600.00 plus a few hundred in interest/ penalties.
I lost it and went through the roof. Explained my situation, and they told me “too bad, but no one in our dept provides false or inaccurate information, if you have an issue you can write the fairness dept” So make a long story short, I paid the very last day it was due, these wankers can wait to get my money.
Lesson learned
Add her income in, and do not listen to the half retarded monkeys they hire at CRA for advice.
Or Take it to an accountant, pay the deductible fee and let them handle it. |
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| newaccorddriver |
| so basically when your married, CRA see's it all as combined income, so in the end, your actually at a much higher tax bracket then you were prior to getting married? does this include common-law or anything like that? |
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| bw54867 |
Since you got married late in 2007, maybe save filing as a couple until 2008.
The benefit to marriage is if one partner makes less than around $15,000 at which point the higher earning partner will take the leftover tax credits and apply them to his or her income. This is to give single income families a tax break.
Really though, in your situation, your combined taxes payable should be no different than it would be if you were both single.
Without knowing your incomes its hard to pinpoint exactly what is causing this variance. Try this tax calculator:
http://www.taxtips.ca/calculator/cdncalculator.htm
I like using this calculator, try using it and see if you still come up with the same numbers. |
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| Inzane |
quote:
Originally posted by RSready
So before I put in that number I was calculated to get a $3,600 return. I went back and put her income in and it recalculated it so that I was only receiving a $600 return.
Same thing happened to me. Also using quicktax, I initially hadn't put in my wife's income and was like woohoo, look at my expected refund. But when I did put her's in, my refund dropped by about ~$3000, just like yours did.
D'oh.
That's just life.
However the overall financial benefits of dual income still far far outweighs the meager difference on a tax return. |
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| Graphicdude |
| You don't have to add your spouses income to your taxes unless you are claiming her as a dependent right? You can still file your taxes separately can't you? |
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| Inzane |
quote:
Originally posted by Graphicdude
You can still file your taxes separately can't you?
You can file separately but you are still required to report "Line 236" (spouses income) on each other's return. |
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| AudiInProgress |
Fuck CRA!
And it's not $15,000 or less...
It's like $10,000 or less. |
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| Graphicdude |
quote:
Originally posted by Inzane
You can file separately but you are still required to report "Line 236" (spouses income) on each other's return.
Why? We each paid taxes and filed our own return. WTF does it matter what she makes or what I make in each other's return? I thought that they would put 2 and 2 together when you mention your "married" in the return. CRA can lick cock, fuckin bastards. |
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| Inzane |
quote:
Originally posted by AudiInProgress
Fuck CRA!
And it's not $15,000 or less...
It's like $10,000 or less.
Its $9,000 or less I think. I was just looking at it the other day. |
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| SilverE90 |
lol at all you guys using quick tax incorrectly. :p
If you use a tax software and say you are married and don't enter a spouses income it assumes that your spouse is a dependant and takes the appropriate deductions. lol
If you put in that you are single the return should calculate out exactly the same as if you put married and enter your spouses income (assuming your spouse earns enough you can't transfer any deductions).
Being married doesn't mean you pay any more or less tax (again assuming you both make enough not to transfer any deductions to the other person). The reason they want your spouses income is because there is the potential to reduce your taxes by transfering those tax credits.
And it is 15k or less for provincial tax in AB and 9600 or less for federal tax.
This is why it is best for most people to have someone qualified do your tax return. :thumbup: |
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| RSready |
quote:
Originally posted by SilverE90
lol at all you guys using quick tax incorrectly. :p
If you use a tax software and say you are married and don't enter a spouses income it assumes that your spouse is a dependant and takes the appropriate deductions. lol
So the reason it said I had a $3,600 return before I entered her income was because the program assumed my wife was a dependent and gave me $3k of tax breaks? Am I understanding you correctly? |
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| TrevorK |
quote:
Originally posted by RSready
So the reason it said I had a $3,600 return before I entered her income was because the program assumed my wife was a dependent and gave me $3k of tax breaks? Am I understanding you correctly?
If your spouses income was under a certain amount, then yes, you are eligible for a tax break. Read here:
http://www.cra-arc.gc.ca/tax/indivi...eligible-e.html
As mentioned above, this is to benefit those single income families so that the spouse can take advantage of the credits the other doesn't use. |
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| SilverE90 |
quote:
Originally posted by RSready
So the reason it said I had a $3,600 return before I entered her income was because the program assumed my wife was a dependent and gave me $3k of tax breaks? Am I understanding you correctly?
Exactly. That is how the tax programs work.
If you go back and enter that you are single it should come up with the same amount as the married with her income entered amount (again with the assumption that there are no tax credits to transfer even with her income). |
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| RSready |
quote:
Originally posted by SilverE90
Exactly. That is how the tax programs work.
If you go back and enter that you are single it should come up with the same amount as the married with her income entered amount (again with the assumption that there are no tax credits to transfer even with her income).
Changed it to single to see what happened and you are right. Thanks for the help.
And thanks to everyone else who contributed in this thread! |
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