Quote:
Originally Posted by CalgaryFan1988
Ok, so then we are taxed individually......confusing. I had my income tax done this year, I get a long with my ex so we did the taxes twice, once as married once as separated, to see which was better for us.
Married, she gets back $1300, I pay $3500. (approx)
Separated, she breaks even, I get back $400. (approx)
So, I don't get it...... There is, in my experience, a difference from claiming married versus single....
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You don't get an option in choosing whenever your single or married/common-law relationship. If on Dec 31 of the tax year you live together and present yourself as a couple to friends and family your deemed to married or in a common-law relationship.
The reason why your individual tax returns changed is because married spouses may transfer certain non-refundable tax credits to their spouse. As such you as a couple get a net gain of $2600. Note that spousal transfer of those tax credits is entirely optional, you don't have to do it if you don't want to.
Here are the forms that you fill out to transfer spousal credits(your tax program should have produced a complete schedule)
Federal
http://www.cra-arc.gc.ca/E/pbg/tf/50...000-s2-08e.pdf
Alberta
http://www.cra-arc.gc.ca/E/pbg/tf/50...009-s2-08e.pdf