Marriage is a universal process of bonding between two people legally. But are you aware of the spousal law of Canada? If you are not aware of the spousal amount, you are reading the right article if you are willing to know about it. Here we will provide all you need to know about claiming spousal amount and more.
This information will help you to plan your common-law partner’s future and also yours. Suppose you have ideas about the spousal amount and other related issues. In that case, you can avoid many adverse outcomes that may affect your financial situation.
All you need to know about claiming spousal amount
There are many factors about laws and claims of spousal amount. But before going to a point, let us see what the spousal amount is.
What is the spousal amount?
The common-law partner or spousal amount is a non-refundable tax credit. This tax credit helps to take care of families living together where one spouse lives under another’s financial responsibility.
Suppose the common-law partner is eligible as a caregiver in Canada to claim the spousal amount. In that case, the maximum amount of claims is $11,809 or $13,991 per year.
One can only claim this money when they are eligible. But even when you have eligibility yet, you can only claim the amount if
- Your spouse was living under your financial support or when the income of your spouse is less than $12,069 or $14,299
- If your spouse had mental or physical issues, then also you can claim this amount.
If your dependent spouse is eligible and solvent, you will not claim a common-law amount.
For divorce or separation
If you are living separately, then spousal amount will not be added to your income tax. If your separation occurs during the year, then this process will be applicable at that specific time. Before your separation, you have to add the spousal amount with your income tax.
You can claim the spousal support during the specific time you can claim a deductible amount for your separation during the year. Or you can also claim the full spousal amount, but you cannot claim both of the amounts.
Don’t forget to claim the identical area based non-refundable tax credit to which you are eligible of your provincial or territorial family laws.
There are special rules about spousal amount for bankruptcy and immigrants to Canada and emigrants from Canada.
Net income of a spouse or common-law partner to be eligible
Your common-law partners return the amount basis on which the amount of your claim will depend. If you are together with your partner until a year, you have to pay the common-law or spousal amount. But later, for some reason, you got separated, then you an application to reduce it.
What are the ways of claiming spousal amount?
Complete the relevant sections of Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants, to determine your claim and add a copy to your return. You can take help of spousal support lawyer to clarify your steps to claim spousal amount.
If support payments are provided
If you have paid the support to your spouse and later got separated for a certain portion of the year and later got back to the relationship again. Then, you can claim the amount of deduction.
There is a possibility of you being qualified to claim an expense of $2,230 in consideration if your common-law partner has issues in mental or physical health. For claiming the Canadian caregiver compensation, the net income must be lower than $14,299.
Moreover, complete the suitable portion of Schedule 5, amounts for Spouse or Common-Law Partner and Dependants, for calculating your claim for line 30300.
No one wants a divorce or a separation to take place. But for many unfortunate reasons, two souls who used to live under the same roof may get separated. In some cases, separation is mutual, and in many cases, it is not.
Since the number of cases related to the separation between two persons is common, there are many ways of support made by the law. And that’s how spousal support comes to play. Before getting into a relationship, it is essential to have an idea about family law and spousal support.
That’s why we provided this article about claiming spousal amount. And now that you know about the spousal amount, you can be a bit more aware.