A Beginner’s Guide to Filing Taxes as Newlyweds
If you just got married or are now living common-law, the last thing you are thinking about is filing taxes. However, it’s important that you inform the CRA about these changes on your next tax return. Receiving benefits that you may not be entitled to even if accidental can lead to significant penalties and consequences.
Unfortunately, deciding which credits or expenses to claim can sometimes be confusing. So to help you understand a little bit more, the team at Crosby Business and Tax Services Ltd. has these suggestions and pointers to help guide new couples with filing their taxes.
Don’t delay: Be organized, don’t wait until the last minute. Speak with your accountant and let them know that your situation has changed and you now have a spouse. Family incomes are calculated together in areas such as medical and charitable expenses, and you can take advantage of this aspect with a little know-how.
Seek knowledge: After a significant life change such as marriage, your accountant will be able to inform you about the best way to file in particular circumstances that arise, which include disposal of a property, or if one partner has a business or children.
Retirement plan: You will also understand the potential tax reduction for you and your spouse in regards to your Registered Retirement Savings Plan (RRSP).
Gather financial slips: Your accountant will ask you for all receipts for the tax filing year, so it’s a good idea to keep them handy.
Collect information: You will also have to provide names and details of all family members so that the appropriate data can get filled out correctly.
Provide old tax returns: You will need to bring the previous years’ returns and notices of assessments, to ensure that there is a seamless flow of information from one year to the next. Helping to avoid missed income.
Advice from the pros
Disclose property details: CRA only allows for one principal residence per couple, and one home typically gets sold or becomes a rental. It must be reported correctly to the CRA, or hefty fines and penalties can be issued.
So to make sure that you understand what will be required, it’s crucial to speak with your accountant or tax preparer. We offer a free consultation, so call our team to optimize your returns. We make sure clients are aware of all necessary issues and can also advise on tax guidelines for marriage or common-law partners.
At Crosby Business and Tax Services Ltd., our goal is to exceed your expectations. As the go-to tax planners in Calgary, Alberta, for all accounting needs, you can feel confident filing your taxes with us. We also specialize in wealth and strategic management, tax consulting, bookkeeping, tax preparation and planning services across Airdrie, Northeast Calgary, and Northwest Calgary.
Visit our website to learn more or contact Crosby Business and Tax Services Ltd today.