Canadian law and order provide help services to couples. You can claim a certain amount for your spouse or common-law partner. The payment helps couples to run their families when one spouse needs to support the other.
So, what is the spouse or common-law partner amount? What criteria must you fulfill to claim the amount? How much is the amount exactly, and how can you apply for a spouse or common-law partner amount?
We know you have lots of questions. In this article, we will briefly look into all the areas of concern on this topic. So, without further ado, let’s get into the discussion.
What is the Spouse or Common-law Partner Amount?
The first question that comes to our mind is- what is the spousal amount? A spousal amount is a tax credit amount that is non-refundable. The money helps families where one spouse financially takes care of the other spouse.
You can claim the common law tax credit if your spouse is eligible for the caregiver amount. The total number depends on your income. Also, you will have to support your spouse for any physical or mental dependency.
You can claim a maximum amount of $12,298 or $13,229 for a tax year (it might change). The amount will increase when your spouse is eligible for the caregiver amount. Then you can claim a maximum amount of $14,571 or $15,502. All these will depend on your net income for the year.
Eligibility for the spouse or common-law partner amount
To be eligible for spouse tax credit Canada, you will need to support your spouse. Your spouse needs to be dependent on you. You cannot claim the amount for an eligible dependent.
You can claim the common-law partner amount anytime throughout the year. This also means that you don’t have to look after your spouse for the whole year. Even if you have supported your spouse for some of the years, you can claim the amount.
There is also an income threshold bestowed upon the amount. You can claim the amount if your spouse’s net income is less than your basic amount. If they are dependent on you for physical or mental illness, you can add $2,273 with your spouse’s net income.
Special Rules to Claim Spouse or Common-law Partner Amount
There are certain situations when you cannot claim the spousal amount. For instance, if you are supporting an eligible dependent, you cannot claim the amount. This means that the person is capable of looking after herself. So, your credit application will not be accepted.
There are special rules as well for other different scenarios. You will have to go through a whole different and stringent process for 3 special occasions.
They are as follows:
- Immigrated to Canada
- Emigrated from Canada
Another situation is when the net income of your spouse is above the threshold amount. This can be from the dividends your spouse received from Canadian corporations.
How to Claim the Spousal Amount?
Before making a claim, you must remember the conditions stated throughout this article. You cannot claim credit support for both spouses in the same calendar year. One spouse must be supporting the other. And the claim will need to be for the spouse you are supporting.
To initiate the process, you will need to fill out a form. The application form is titled: “Schedule 5, Amounts for Spouse or Common-Law Partner and Dependents”. In the form, you can calculate the overall claim you can make.
You will also need to submit documents to support your claim. This can be in the form of your annual returns. So, attach a copy of the document with the application as well.
Claiming Support Payment During or after Separation
The Canadian law provides options to claim support amount during relationship breakdown too. You could claim the payment if you went through separation for a part of the year. You can also choose this situation.
There are two options in your hand. Line 22000 allows you to claim a deductible amount. This amount is what you paid your spouse or common-law partner during the year.
Or you can also claim a return for your spouse or common-law partner on line 30300. You are entitled to choose whichever suits you best. If you get back with your spouse during the year, you can choose either on line 30300 or line 32600.
Do you still have the question- what is the spouse or common-law partner amount? You shouldn’t anymore if you have come till this. Yet, you can consult a lawyer to discuss your case.
The spousal amount is a helping hand from the Canadian law and order for families. You can be married or in a common-law relationship to claim the amount. But remember that you must be supporting your spouse anytime throughout a calendar year.
Frequently Asked Questions
Should I claim a spousal amount?
Claiming a spousal amount would get you out of a lot of financial burdens. If you are supporting your spouse with the minimum threshold income amount, you should claim spousal support.
What is the amount for an Eligible Dependent?
The amount for an eligible dependent means tax credits for supporting one dependent. The amount as of 2020 is a maximum of $13,229.
How much is the spousal amount tax credit?
You can claim a maximum amount of $12,298 or $13,229 for the 2020 tax year. The amount will increase when your spouse is eligible for the caregiver amount. Then you can claim a maximum amount of $14,571 or $15,502. All these will depend on your net income for the year.
What does spousal amount mean?
Often, one spouse or common-law partner financially supports the other. The spousal amount is a helping hand to these families for the spouse that supports the other. It is a non-refundable tax credit for the family.