Got CRA Tax questions regarding COMMON-LAW SPONSORSHIP

[hasbeenkid]

Hi peeps,

Me and my Canadian Common-Law partner gf are preparing for PR now. We have been together for 4 years... and became Common-Law 2013.03 after living together 1 year. We recently changed our status on CRA though because we didn't know that.

Q. Even if our status has been changed on CRA, do I still need to adjust my rent tax return for the same address (although I didn't pay rent during that time?) I didn't apply for tax return for some year (or some year just small amount of money applied..) for rent (Line 6110) because she was paying rent while I was contributing to groceries and etc....

Will it matter for our PR app when CIC looks at option C printout? Do you guys think we still need to adjust the money paid for rent on CRA aside from our status?

Thanks for help in advance!

 

[Hansdza]

When you live together with your gf for more than 90 days (if memory serves me right) you have to report to CRA that are in common law relationship. The reason is because only one of you entitled to receive tax credit such as GST and other tax benefit. If you dont change your status CRA will keep sending cheque to both of you. And when they realize that you are not entitled to auch credit or benefit. They will ask them back (plus penalty). That is why it is important to inform CRA about changes in your marital status.

For rent tax credit. I believe it is only applicable in the province of Ontario (and Manitoba). CMIIW. Not for federal or other province. And if you live together only one person can claim such tax credit (not both of you). I honestly dont think who is claiming the tax credit a big deal. The only thing that matters is your status in your tax return. Either single or common law relationship.

Commom law relationship needs a lot of proof to show CIC that your relationship are genuine. Joint bank account, joint mortgage agreement, joiny rental agreement, photos, friends and family testimony, photos, etc. Basically Anything at all that can satisfy CIC that you are a genuine common in law of your gf.

From what I read, the strongest evidence is children. That is an undeniable proof that you are a conjugal partner or a common law with your gf. Other than that, flood them with a whole bunch of proof to make them believe your claim.

If i am not mistaken. Common law has the same right and responsibility with marriage. If you are separated with your gf. She or you are entitled to child support (if you have any children) and/or spousal support. Please confim with legal advisor or immigration lawyer. But in the eyes of CIC, you need a lotta more evidence to prove your status.

 

[Rob_TO]

Hi peeps,

Me and my Canadian Common-Law partner gf are preparing for PR now. We have been together for 4 years... and became Common-Law 2013.03 after living together 1 year. We recently changed our status on CRA though because we didn't know that.

Q. Even if our status has been changed on CRA, do I still need to adjust my rent tax return for the same address (although I didn't pay rent during that time?) I didn't apply for tax return for some year (or some year just small amount of money applied..) for rent (Line 6110) because she was paying rent while I was contributing to groceries and etc....

Will it matter for our PR app when CIC looks at option C printout? Do you guys think we still need to adjust the money paid for rent on CRA aside from our status?

Thanks for help in advance!

Not sure about any rent credits on taxes, but you do have a serious issue with the CRA. If you became common-law on March 2013 (so started living together March 2012), then both you and your partner should have filed taxes as common-law for both 2013 and 2014. If you filed as single, then both of you have committed tax fraud for those years as it's mandatory to do taxes as common-law, when you became common-law.

You can go back and do re-assessments for 2013 and 2014, as common-law. However if either of you were getting certain benefits (like GST credit payments) during that time as single, that you wouldn't have qualified for as common-law, you would need to pay everything back.

Most likely CIC won't care about your Option C printout as you'll be proving your common-law status to CIC separately.

 

[Rob_TO]

When you live together with your gf for more than 90 days (if memory serves me right) you have to report to CRA that are in common law relationship.

No, you don't have to change marital status with CRA from single to common-law until 12 months of cohabitation... not 90 days.

Or if you have a child together and live together, then common-law status in instant.

If i am not mistaken. Common law has the same right and responsibility with marriage. If you are separated with your gf. She or you are entitled to child support (if you have any children) and/or spousal support. Please confim with legal advisor or immigration lawyer. But in the eyes of CIC, you need a lotta more evidence to prove your status.

The 12 months rule for common-law is only for the CRA. For legal status of common-law in terms of separation rights and support payments, you need to look at provincial rules for common-law and in most provinces that's 3 years of cohabitation (they're all a bit different and have different legal rights involved).

 

[hasbeenkid]

Not sure about any rent credits on taxes, but you do have a serious issue with the CRA. If you became common-law on March 2013 (so started living together March 2012), then both you and your partner should have filed taxes as common-law for both 2013 and 2014. If you filed as single, then both of you have committed tax fraud for those years as it's mandatory to do taxes as common-law, when you became common-law.

You can go back and do re-assessments for 2013 and 2014, as common-law. However if either of you were getting certain benefits (like GST credit payments) during that time as single, that you wouldn't have qualified for as common-law, you would need to pay everything back.

Most likely CIC won't care about your Option C printout as you'll be proving your common-law status to CIC separately.

Thank you for your reply. How can I get option C printout though? Can I get on my CRA account? my status is Common-Law already on CRA account.

 

[Hansdza]

Good catch Rob.. correction Yes it is one year instead of 90 days. I got mixed with my own case ??? .. source http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/prsnl-nf/mrtl-eng.html

Yes for legal status of common law varies among provinces. Quebec doesnt recognize common law but I guess Supreme Court of Canada recognizes it. This matter is beyond the knowledge of people in general. So please consult legal advisor for details.

 

[hasbeenkid]

When you live together with your gf for more than 90 days (if memory serves me right) you have to report to CRA that are in common law relationship. The reason is because only one of you entitled to receive tax credit such as GST and other tax benefit. If you dont change your status CRA will keep sending cheque to both of you. And when they realize that you are not entitled to auch credit or benefit. They will ask them back (plus penalty). That is why it is important to inform CRA about changes in your marital status.

For rent tax credit. I believe it is only applicable in the province of Ontario (and Manitoba). CMIIW. Not for federal or other province. And if you live together only one person can claim such tax credit (not both of you). I honestly dont think who is claiming the tax credit a big deal. The only thing that matters is your status in your tax return. Either single or common law relationship.

Commom law relationship needs a lot of proof to show CIC that your relationship are genuine. Joint bank account, joint mortgage agreement, joiny rental agreement, photos, friends and family testimony, photos, etc. Basically Anything at all that can satisfy CIC that you are a genuine common in law of your gf.

From what I read, the strongest evidence is children. That is an undeniable proof that you are a conjugal partner or a common law with your gf. Other than that, flood them with a whole bunch of proof to make them believe your claim.

If i am not mistaken. Common law has the same right and responsibility with marriage. If you are separated with your gf. She or you are entitled to child support (if you have any children) and/or spousal support. Please confim with legal advisor or immigration lawyer. But in the eyes of CIC, you need a lotta more evidence to prove your status.

Thank you for replying back.. we are gathering all the evidence right now. I was just worried about CRA thing... it shows we are Common-Law but on my account, rent paid section was my concern.

 

[Rob_TO]

Thank you for your reply. How can I get option C printout though? Can I get on my CRA account? my status is Common-Law already on CRA account.

You need to call them. It states right on the checklist, #17: http://www.cic.gc.ca/english/pdf/kits/forms/IMM5491E.pdf

And again the issue you have with CRA is not about your current status, it's that you and your partner have committed a form of tax fraud for years 2013 and 2014. If CRA ever decides to audit either of you in the future, and they see you filed as single when you should have filed as common-law in these 2 years, they will force the re-assessment to collect back any payments you got that you weren't entitled to and may also add fines and penalties. It's in your best interest to do the re-assessment on your own.

 

[hasbeenkid]

You need to call them. It states right on the checklist, #17: http://www.cic.gc.ca/english/pdf/kits/forms/IMM5491E.pdf

And again the issue you have with CRA is not about your current status, it's that you and your partner have committed a form of tax fraud for years 2013 and 2014. If CRA ever decides to audit either of you in the future, and they see you filed as single when you should have filed as common-law in these 2 years, they will force the re-assessment to collect back any payments you got that you weren't entitled to and may also add fines and penalties. It's in your best interest to do the re-assessment on your own.

Oh ok. we actually got T1 adjustment request form from CRA website and filled it out. We are about to send it. the thing is its gonna take 8 weeks...

And should I do re-assessment for 2012 tax return too?? because I did not do tax return for rent paid (did not even provide the address that we lived in together to CRA...) Status is fine because we were single at that time.