Experienced replies please: Claiming spouse on taxes - outside Canada

[MissDominica]

Hi everyone,

Hubby and I married this June. I started working at a new job that requires me to fill out 2014 Personal Tax Credits Return form which basically helps them know how much to deduct off of my pay check each month. NOW - I have been told by several people that they HAVE BEEN able to claim their husbands on their income tax returns as a dependant or spouse even if he/she lives outside of the country and the person claiming lievs in Canada (that is our situation - hubby is still in his country until his approval and I help to support him).

However, on the form my work is making me fill out, it says I can claim a "spouse or common-law partner that makes less than $11,138 AND WHO LIVES WITH YOU".

Obviously hubby doesn't live with me yet.. but he is my spouse and I will be claiming him on my income tax... so I feel like I SHOULD claim him on this form.. but the form specifically says a spouse that lives with you...

Help? :

Also, for anyone who has claimed their spouse on taxes while spouse is living outside of Canada - a short idea of how u did this will be helpful for future reference.

Thanks

 

[Rob_TO]

Hi everyone,

Hubby and I married this June. I started working at a new job that requires me to fill out 2014 Personal Tax Credits Return form which basically helps them know how much to deduct off of my pay check each month. NOW - I have been told by several people that they HAVE BEEN able to claim their husbands on their income tax returns as a dependant or spouse even if he/she lives outside of the country and the person claiming lievs in Canada (that is our situation - hubby is still in his country until his approval and I help to support him).

However, on the form my work is making me fill out, it says I can claim a "spouse or common-law partner that makes less than $11,138 AND WHO LIVES WITH YOU".

Obviously hubby doesn't live with me yet.. but he is my spouse and I will be claiming him on my income tax... so I feel like I SHOULD claim him on this form.. but the form specifically says a spouse that lives with you...

Help? :

Also, for anyone who has claimed their spouse on taxes while spouse is living outside of Canada - a short idea of how u did this will be helpful for future reference.

Thanks

Is your husband unemployed in his home country now? If not, you need to account for his world income as CRA will ask for it, and if it's greater than the $11K amount, you can't claim anything for him.

Also that spouse amount assumes you are actually supporting your spouse. He doesn't need to be in Canada, but for spouses not living with each other CRA could ask to see proof of money transfers to him, or proof of other ways you financially support him.

If he really is unemployed or makes little income and you are supporting him, then you can go ahead and claim him. If not, then you probably can't as if CRA ever did an audit you could be in trouble.

 

[truesmile]

Just to add. The form you are filling out for work is NOT your income tax return. It's simply a mechanism so they will withhold and remit accurate source deductions on your behalf. The way that form reads (the one you're looking at now), "yes" your spouse must live with you for you to claim him or her - AT THIS POINT. After the end of the year however, absolutely you will put your 'married' civil status and include your spouse on your 'income tax return' complete with world income and everything will calculate out accurately (either for you or your tax preparer). If your hubby's income is low, then you will probably get a refund when you file next spring.

 

[SenoritaBella]

When it comes to income tax return, I believe the first step is determining whether your spouse is considered a resident for tax purposes(even if he lives outside Canada) or not. For citizens of countries that do not have a Tax Agreement with Canada, having a spouse who lives in Canada effectively makes them a resident for tax purposes. See this: http://www.howlandtax.com/articles/nonresident-spouse.htm

More info: http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-04-13e.html#P1083_141452

My spouse lives outside Canada. I converted his income into Canadian dollars(saved a print out of currency converter). Since he is not a resident for tax purposes, all calculations for GST/HST credit, etc were based on my income only. I did not enter a SIN number for him and CRA did not ask for anything else.

If you are up for it, I would suggest when doing taxes for 2014 next year, to go to the CRA website and download one of their certified tax softwares for free (I use NetFile). It is amazing... it is just fill out the blanks, and it asks you about every possible expense you could claim which can jog your memory if you forgot. This software also has the ability to do your calculations based on your income and also on your spouse's income simultaneously to see which one gives you a better refund. Something to keep in mind when your spouse gets here eventually.

Hi everyone,

Also, for anyone who has claimed their spouse on taxes while spouse is living outside of Canada - a short idea of how u did this will be helpful for future reference.

Thanks

 

[MissDominica]

Thanks everyone!