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Can my love life affect my tax bill?

This post is in honour of Valentine’s Day…I realize that I’m a day late, but we spent yesterday celebrating.  Heart-shaped pancakes in the morning, kids’ party in the afternoon, and a date with my hubby in the evening.  What a great day!
The answer to the question is a definite yes!  While the government hasn’t yet figured out how to tax love itself, if your relationship status changes (whether you update it on facebook or not), your tax bill could change as well.

'heart' photo (c) 2011, winnifredxoxo - license: http://creativecommons.org/licenses/by/2.0/

From single to married or common-law
For Canadian income tax purposes, a “spouse” is someone to whom you are legally married.  A common-law partner is someone with whom you have been living in a conjugal relationship for at least 12 continuous months.  There are other situations where common law status may apply, so if you have a child or are reconciling with a previous partner, click here to see if you are considered to be “common law”.

Whether you are legally married or are considered a common-law partner, the tax results are about the same.  The income tax advantages of being married/common law include:
The tax disadvantages of being married or in a common-law relationship:
We were together and now “it’s complicated…”
Support payments made or received under a court order or written agreement may be tax deductible/taxable depending on their nature.  There are lots of rules on these situations and even more exceptions.  If you’d like to do some background reading, a good place to start is here, but you will definitely need professional advice specific to your own situation.
July 28, 2012

1 responses on "Can my love life affect my tax bill?"

  1. I am getting married next summer so this is great information to have! thanks!

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