# newly married, file together or separately



## joncnca (Jul 12, 2009)

my wife and i generally keep our finances separate. are there any really compelling reasons to file together (i.e. substantial tax benefit), or can we continue to file separately without missing out any any major benefits.

contribution to spousal RSP, claiming tax credits for charitable donations...these can still be done even if we file separate tax forms, as long as our math adds up, right?

but are there any specific benefits that can only be had if we file together (i.e. send our forms in together as a household)...or does this not make any difference?

thanks.


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## MoneyGal (Apr 24, 2009)

I'm not really sure what you are asking. In Canada, there is no joint filing of tax returns. You each file separate returns in your own names. 

When you are married (whether common-law for tax purposes or legally) you can optimize various deductions and credits. However, you are not required to. 

You are, though, required to indicate your marital status and the date on which that status changed, if it changed in the last year. 

If you are entitled to certain credits based on household income (i.e., the GST credit), your eligibility will be automatically (by CRA) calculated based on both of your incomes, not just one income. 

So, you don't actually (a) file jointly when married or (b) have any discretion in whether you report your marital status or not. You may not report it, or not report it truthfully, but the tax process doesn't allow you any choice in the matter.


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## joncnca (Jul 12, 2009)

ok thanks.

so then let's say we have made some charitable donations. we both file our individual tax returns, but we can make it so that only one person claims the deduction, right? based on our marital status info, CRA will know that it was a contribution made by the spouse (if the receipt has the other spouse's name on it)

also, let's say i don't have any more room to make an rrsp contribution, but my wife has contribution room. we are, as you say, filing our individual tax returns (i.e. no 'joint' filing). can i open a spousal rrsp and make a contribution using her contribution room....does this reduce MY taxes, or does it reduce her taxes?

do i have this all wrong?

here's some more background, i was putting my info into ufile. it has the option to add family members to your account, so i can add my wife and fill in her information. does this simply generate two separate tax returns? this is not "joint" filing, is it?

thanks


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## Pigzfly (Dec 2, 2010)

Yes - I give the money away, my spouse claims the donation credit.

Yes - a spousal RRSP uses your money (saves at your tax rate), but uses your spouse's eligible contribution room. There are a bunch of rules around this, including who gets the money in the event of a split (I believe once it's in a spousal, it completely belongs to the spouse), plus you cannot remove money for 3 years after putting it into a spousal RRSP. ie - no withdrawals, no life long learning plan, no home buyers plan.


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## MrMatt (Dec 21, 2011)

Pigzfly said:


> Yes - I give the money away, my spouse claims the donation credit.
> 
> Yes - a spousal RRSP uses your money (saves at your tax rate), but uses your spouse's eligible contribution room. There are a bunch of rules around this, including who gets the money in the event of a split (I believe once it's in a spousal, it completely belongs to the spouse), plus you cannot remove money for 3 years after putting it into a spousal RRSP. ie - no withdrawals, no life long learning plan, no home buyers plan.


I think it still uses your RRSP contribution room.

You can withdraw within 3 years, but you pay the income tax .


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## OhGreatGuru (May 24, 2009)

_also, let's say i don't have any more room to make an rrsp contribution, but my wife has contribution room. we are, as you say, filing our individual tax returns (i.e. no 'joint' filing). can i open a spousal rrsp and make a contribution using her contribution room....does this reduce MY taxes, or does it reduce her taxes?_

No, a "spousal RRSP" would be if you had contribution room to spare. She opens a personal RRSP, contributes, and can claim the tax deduction from her income.


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