# Common law relationship: tax purposes vs OSAP



## alex113 (Apr 16, 2016)

Hi there, I am hoping someone can help me out with this.

I am a Canadian citizen, but my boyfriend is Australian and we lived together for about 1.5 years in Australia. Then I came back to Canada to go back to university in August 2015. I applied as a single for OSAP because they they view common law as living together for three years. 

Now, I am filling out my 2015 tax return and they view a common law relationship as over 12 months. We have been together total for just over 2 years, and he will be moving here in June 2016. (after living apart for 10 months)

I am wondering if I put I am in a common law relationship in 2015, will that affect my OSAP from last year as it seems contradictory even though they have different standards? I didn't fill out a tax return for 2013 or 2014 because I didn't earn any money in Canada and was told by an accountant I didn't have to. Also, I need to put in his SIN, but he does not have one since he has not arrived in Canada yet. Lastly, do I report his foreign income?

Thanks in advance!


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## AltaRed (Jun 8, 2009)

Common law for tax purposes (Income Tax Act) is diffferent than common law for family law purposes. For tax purposes, common law is one year. For family law, it depends on the province... some of which are 2 years (like BC) or 3 years (like AB0 or?????

I don't know what OSAP is so cannot advise... but for federal tax credits, etc. that appear on the T1 tax return, such as GST/HST tax credit, it is one year.


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## Spudd (Oct 11, 2011)

I don't know anything about this really, but do you think they would actually consider you common law for taxes even though you didn't live together for 4 months out of the 12 in 2015? It seems weird. Since he still lives in Australia I feel like saying you're common law and having to put his information on your taxes will complicate matters and won't help, so I would lean towards saying you're not common law. 

This is entirely a gut feel opinion so take it with a big grain of salt!

I found this article that might help you.
http://www.moneysense.ca/save/taxes/romantic-roommates-at-tax-time/


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## AltaRed (Jun 8, 2009)

It could be worth a try since you were NOT living together on Dec 31st. That said, you were living together for 8 months in 2015 and for 1.5 years in Australia AND maybe more importantly, plan to live together again. That shows intent and IF CRA comes calling sometime in 2016 or 2017 to query your 2015 tax return, they could define your status as common law... especially if there is no formal evidence of a 'separation' , i.e. no formal breakup...adios..get lost... type of thing when you left Australia. The downside here is you may be accused of fraudulently accessing tax benefits (tax evasion) if you would not otherwise qualify including your bf as a 'spouse'.

Think about this 1: When it comes to doing your 2016 tax return next Aprll, what date would you put into your tax return for when you started living common law? Back in 2014? Or the date he arrives in Canada in 2016? What will be the basis of his work visa coming to Canada? What will he be saying to Immigration about relationships in Canada? That may answer your question.

Think about this 2: Someone from Country A comes to Canada single status on a work visa and sends money home every month to his family in Country A. That individual is no doubt going to declare his family as dependents regardless that they are separate and apart perhaps for 6 months or more at a time. This is actually fairly common. One could argue this IS very different especially if married with children, and it is, but again, CRA's designation would be based on the facts as they stand.


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## Spudd (Oct 11, 2011)

Those are excellent points, AR. 

I would say your best bet is probably to call the CRA, explain the situation, and ask them how you should proceed.


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## alex113 (Apr 16, 2016)

Thanks for the replies! So I ended up calling them and they said I do have to claim as common law since we lived together for 12 months beforehand and there was no breakdown of the relationship. So I will do that.

I was mostly concerned about how this would affect my OSAP funding I got last year (was worried I would have to repay it right away), but I think it should be fine since they consider common law to be living together for over 3 years, which it won't be. I was just worried that if I said common law for tax and single for OSAP it wouldn't look good, but since they have different standards they must get that a lot.


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## AltaRed (Jun 8, 2009)

Thanks for reporting back. What you suggest makes sense... since family law varies by province and common law parameters vary by province too.


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## sags (May 15, 2010)

Even though you have no income you should be filing tax returns to qualify for the HST rebate.


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## AltaRed (Jun 8, 2009)

sags said:


> Even though you have no income you should be filing tax returns to qualify for the HST rebate.


Doesn't apply in this case if they are common law and the bf has high enough income that negates the credit. HST/GST type credits are family type credits and that is why CRA's computers comb tax returns looking for people living at the same addresses but not declaring common law.

But I agree with you that it is worthy to note that everyone 18 yrs of age or over should file an income tax return to potentially avail themselves of credits, social subsidies (such as health care), etc.


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