Divorce does not end with separation from each partner. It also deals with child custody, spousal support, taxation, and many more.
Henceforth, taxation becomes one of the most crucial issues after separation – whether you need to pay tax or not. If so, how to do it and what the law says about it.
This writing will tell how you can file taxes if you are separated in Canada. So keep reading till the end.
Can You File Taxes If You Guys are Separated?
This is one of the most common questions that a couple asks after the divorce. Despite being separated from each other, the marriage can remain valid. And in such a situation, you may have to file for taxation.
In some cases, a couple wants to file taxes separately because there are benefits to filing taxes individually. But as long as the divorce is not settled, you need to file for taxation jointly.
Can You File Taxes Separately Even If You are Married But Separated?
The rule of thumb is, if you guys are married, you guys have to file for joint taxation. If you are married and want to file taxes separately, you can do that. But in that case, you and your partner both need to file for the taxation.
If you are considered married for a year, you can have one of two options. Either you can file the taxation jointly or separately.
Also Read: Tax Advantages of Legal Separation
Do You Need to Notify Canada Revenue Agency (CRA)?
Generally, the Canada revenue agency (CRA) deals with collecting tax or tax credits and imposes tax laws and policies. Likewise, when a married or separated couple needs to deal with taxation, they must go through the Canada revenue agency (CRA).
As long as the marital status is changed, you must inform the Canadian revenue agency (CRA).
How Can You File Taxes in Canada?
It is important to know the tax filing process, whether separately or jointly. If you fail to follow correct procedures, you may have an uncompleted tax return from CRA.
Here are some simple steps by which you can file taxes in Canada.
Step 1: You need to be up to date:
You need to do is be up to date with things like tax slip issues or payment options. Sometimes, before filing for taxes, you also need to know tax credits, benefits, and the updates for the income tax package.
Step 2: Report your monthly income:
In the next step, you need to report your income. Your income usually includes self-employment income, investment income, income from assets, or others. If you own any small business, that will also have your monthly income.
Step 3: Notify the CRA (Canada Revenue Agency):
Before filing for taxation, it is very important to notify the CRA. You also need to keep all of your CRA information up to date. Whether there is any change in your marital status or other personal information, you need to inform them.
You can also change or update your personal information online. Having MYCRA mobile app on your phone, you can easily update your personal information like address, phone number, marital status, etc.
Step 4: File your taxation:
In this step, you need to file your taxation. There are two ways to do your taxation, either online or by paper. Once you file the taxation online or on paper, you may need to authorize a representative. You also may need to deal with the Community volunteer tax clinic in such cases.
If you find it difficult, you can also seek help from a CRA agent. Especially while filing the taxation, the assistance from any CRA agent will work as guidance. Besides, having a lawyer can help you at most.
Step 5: Make the payment
Once you are done filing taxation, you need to send the completed tax return to your tax center. You can send the tax return online or offline. You can also mail it to your tax center.
After sending the tax return, you need to make the payment. If you owe any money from your tax center, you can wait for your refund.
How Can a Professional Income Tax Lawyer Help You?
Filing for taxation deals with a lot of things. If you are doing it by yourself, you may need to go through many legal processes. Sometimes, it may seem a little bit complicated to you.
Failure to follow the correct procedures may make the tax return more complex. That is why seeking assistance from a professional income tax law is important.
Especially, when you are separated from your partner, the procedure will become much more complicated. In such circumstances, a divorce lawyer will be very helpful. Additionally, an expert professional income tax lawyer can guide you throughout taxation.
Bottom Line:
After divorce, the taxation process becomes a bit complicated. Sometimes, you may need to file the taxation separately or jointly. Either way, you need to deal with a lot of legal procedures. It is quite normal to be confused with those legal rules and laws.
You can seek help from a professional income tax lawyer for any further consultation. When you are under the guidance of a skilled lawyer, things will become much easier for you. Hopefully, this writing helped you understand how you can file taxes if you are separated in Canada.
Frequently Asked Questions:
Here are some more answers to the questions you need to know about the topic.
How should you file taxes if you are separated?
Until your divorce is not finalized, you need to file taxes jointly. You can also file taxes separately in some cases. You may need to seek help from a CRA agent in that situation. Moreover, you can file taxes online.
Do you have to be legally separated to file taxes separately in Canada?
Generally speaking, to file taxes separately, the couple needs to be separated legally from each other. If both are independent of each other, they will be considered separate persons. And a particular person can file an individual tax.
What is my filing status if I am legally separated?
If you are legally separate from your partner, the filing status will be like unmarried people. You can submit the tax individually.
What's the difference between separated and legally separated?
There are some cases where a couple is married, but they are separated, living apart from each other. On the other hand, legally separated means when a couple is lawfully separated (i.e. divorced).
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