Incarcerated individual with a spouse
Pre-test question
Sorry, that's incorrect
An incarcerated individual becomes ineligible to receive GST/HST credit when they have been confined to a prison, or similar institution, for a period of at least 90 consecutive days that includes the first day of the quarterly payment month (July, October, January, April).
That's correct
An incarcerated individual becomes ineligible to receive GST/HST credit when they have been confined to a prison, or similar institution, for a period of at least 90 consecutive days that includes the first day of the quarterly payment month (July, October, January, April).
Instructions
- Open the tax software
- Review the Background information and Required slips (tax slips, receipts, etc.)
- Provide all required information for the appropriate sections of the tax software
- Once completed, compare your results with the solution provided
- Afterwards, refer to Key points of the tax software and the Takeaway points
Background information
Situation
Jason was incarcerated on June 4, 2025 and is not scheduled for release before January 2030. Jason needs to submit his tax return so his spouse, Jennifer, can continue receiving her GST/HST credit. Before Jason’s incarceration, he was employed by Hardware Inc. and Jennifer is currently employed by Hardwire Inc. Jason provided copies of Jennifer’s tax slips for accuracy, but you are only transmitting Jason's return.
| Category | Value |
|---|---|
| Name | Jason Simpson |
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth (DOB) | April 22, 1977 |
| Marital status | Married to: Jennifer Simpson on December 1, 2012 SIN: 000 000 000 DOB: May 22, 1977 |
Required slips
T4 - Statement of Remuneration Paid (Hardware Inc.) (for Jason)
Text version of the above image
T4 - Statement of Remuneration Paid
Protected B
Employer’s name: Hardware Inc.
Employee’s name and address:
Last name: Simpson
First name: Jason
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 12,500.00
Box 16: Employee’s CPP contributions – see over: 400.00
Box 18: Employee’s EI premiums: 185.00
Box 22: Income tax deducted: 1,250.00
Box 24: EI insurable earnings: 12,500.00
Box 26: CPP/QPP pensionable earnings: 12,500.00
Box 45: Employer-offered dental benefits: 1
T4 - Statement of Remuneration Paid (Hardwire Inc.) (for Jennifer)
Text version of the above image
T4 - Statement of Remuneration Paid
Protected B
Employer’s name: Hardwire Inc.
Employee’s name and address:
Last name: Simpson
First name: Jennifer
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 22,500.00
Box 16: Employee’s CPP contributions – see over: 600.00
Box 18: Employee’s EI premiums: 350.00
Box 22: Income tax deducted: 2,250.00
Box 24: EI insurable earnings: 22,500.00
Box 26: CPP/QPP pensionable earnings: 22,500.00
Box 45: Employer-offered dental benefits: 1
RC210 – Advanced Canada workers benefit (ACWB) statement (for Jennifer)
Text version of the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Simpson, Jennifer
123 Main Street
City, Province X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00
Review your results
Solution to Incarcerated individual with a spouse.
Key points of the tax software
Important note
To access complete instructions on the various steps of entering data into the software, click on the title of each section below.
Jason's interview
- Click Interview setup in the left-side menu
- In the Specific situations section, tick the box next to Prison in 20XX
- Click Prison in 20XX in the left-side menu
- Select In prison on December 31, 20XX for more than 6 months from the statement Indicate if you were in prison for 90 days or more in 20XX
- Click T4 and employment income in the left-side menu
- Click the + sign next to T4 income (earned in any province except Quebec)
- Enter the information from Jason’s T4 slip
Jennifer's interview
- Repeat the same steps you did for Jason
Advanced Canada workers benefit (RC210)
- Click Other information slips in the left-side menu
- Click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500]
- Enter the information from the tax slip
Takeaway points
- The software automatically calculates the Canada workers benefit (CWB) and generates Schedule 6
- Jason is not eligible for the CWB because he was incarcerated for more than 90 consecutive days
- Jennifer is still eligible to receive the CWB for herself but does not receive any CWB for Jason due to his incarceration
- Only the duration of the incarceration is needed in the tax software
- Submitting Jason’s tax return ensures Jennifer is able to keep receiving the full benefits and credits she is eligible for
- Jennifer is still eligible to receive the GST/HST credit for herself but she does not receive any for Jason due to his incarceration
Page details
- Date modified: