Scroll down to see the entertaining CRA videos encouraging you to update your marital status.
Some life changes are never easy and often couples forget that they have to update their marital status with the Canada Revenue Agency. Whether you’re getting married, divorced or living common-law, you need to keep your marital status updated.The CRA has produced three videos that remind Canadians to keep their marital status updated. Scroll down to view the entertaining videos with a serious message.
“Your relationship status can have a big impact on your taxation and filings and so you need to update your marital status with the CRA to get the right benefit and credit payments”
CPA, CA, LPA, Partner
Millards Chartered Professional Accountants
Julie Baetz, CPA, CA, LPA and Partner at Millards Chartered Professional Accountants in Brantford says that you should update your marital status as soon as it changes, even if you are living common‑law.
“If you’ve been living with your partner for over a year, you’re now considered to be in a common-law relationship. It’s important to tell the Canada Revenue Agency of the change”
According to Baetz, there are some exceptions.
“If you separate because of a breakdown in your relationship, wait 90 days from the date you started living separate and apart to update your marital status. This makes sure you get the right benefit payment amounts”
So what is living common-law?
“You are living common-law when you live in a marriage-like relationship with another person, but you are not legally married to that person.”
The CRA defines common-law relationships when one of the following situations happens:
- you and your common-law partner have lived together in a marriage-like relationship for at least 12 months in a row (including any time you were separated for less than 90 days because of a breakdown in the relationship)
- you have a child with your common-law partner naturally or through adoption, no matter how long you have been living together
- your common-law partner has custody and control of your child (or had custody and control immediately before your child turned 19 years of age) and your child completely depends on your partner for support
Baetz adds that the CRA rules apply to same-sex partners and one of the new CRA public service announcements presents a same-sex scenario as an example of how the CRA rules are applied equally.
“Living common-law also applies to same-sex partners who meet the above conditions, and they will have the same tax rights and responsibilities.”
Getting divorced?
“If your marital status changed during the year and you are entitled to any Canada child tax benefit (CCTB) payments, GST/HST credit, or working income tax benefit (WITB) advance payments, you must let the CRA know by the end of the month after the month of your divorce.”
In the case of separation, you do not need to tell the CRA until you have been separated for more than 90 consecutive days.
Getting married?
“Congratulations! But don’t forget that you need to tell the CRA when you get married.”
You can change your marital status online by using the Change my marital status service through CRA’s My Account, by calling 1-800-387-1193, or completing an RC65, Marital Status Change Form.
Of course Millards Chartered Professional Accountants is happy to assist clients in updating their marital status. Please contact us to update your marital status and account.”
Changing your name?
You also need to let the CRA know as soon as possible.
“They do not accept changes of name by email or over the Internet. Just call 1-800-959-8281 to report your name change.”
Did you make the majority of the household income this year?
“If at any time in the year you supported your spouse or common-law partner and his or her net income was less than $11,038, you can claim this amount! If you also claimed the family caregiver amount, your spouse or common-law partner’s net income must be less than $13,078 to be eligible.”
Contributing to your spouse’s or common-law partner’s RRSP
Contributions you make to a spousal or common-law partner RRSP reduce your RRSP deduction limit. Find out how much you can contribute and deduct.
Are you making or receiving support payments?
For information about the tax implications of divorce and your revised marital status, go to Support Payments.
Baetz has a special interest in audits of public sector entities and not-for-profit organizations. Her practice areas include accounting, taxation and management advisory services. She also prepares personal income taxes as well as works with small to large businesses with their accounting needs. Baetz became a Partner of the firm in 2014.
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