Reporting amounts transferred from spouse
Reporting amounts transferred from spouse
Pre-test question
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An individual may be able to claim all or part of certain amounts that their spouse or common-law partner is eligible for but does not need. The total of the amounts that they can claim will be reported on line 32600, Amounts transferred from your spouse or common-law partner, of their tax return.
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An individual may be able to claim all or part of certain amounts that their spouse or common-law partner is eligible for but does not need. The total of the amounts that they can claim will be reported on line 32600, Amounts transferred from your spouse or common-law partner, of their tax return.
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 the Takeaway points
Background information
Situation
Tim and Donna are married and preparing their tax returns. They both have working income. Tim also received Advanced Canada workers benefit payments.
Identification information
| Name | Tim Ward |
|---|---|
| Social insurance number (SIN) | 000 000 000 |
| Address | 123 Main Street City, Province X0X 0X0 |
| Date of birth (DOB) | August 8, 1964 |
| Marital status | Married to: Donna Ward on June 7, 1986 SIN: 000 000 000 DOB: June 13, 1959 |
Required slips
T4 – Statement of Remuneration Paid (for Tim)
Text version of the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Torch Corp.
Employee’s name and address:
Last name: Ward
First name: Tim
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 35,776.00
Box 16: Employee’s CPP contributions – see over: 1,310.11
Box 18: Employee’s EI premiums: 600.00
Box 22: Income tax deducted: 3,566.12
Box 24: EI insurable earnings: 35,776.00
Box 26: CPP/QPP pensionable earnings: 35,776.00
Box 45: Employer-offered dental benefits: 4
T4 – Statement of Remuneration Paid (for Donna)
Text version of the above image
T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Heat Inc.
Employee’s name and address:
Last name: Ward
First name: Donna
123 Main Street
City, Province X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 7,500.00
Box 16: Employee’s CPP contributions – see over: 204.00
Box 18: Employee’s EI premiums: 115.00
Box 22: Income tax deducted: 700.00
Box 24: EI insurable earnings: 7,500.00
Box 26: CPP/QPP pensionable earnings: 7,500.00
Box 45: Employer-offered dental benefits: 1
RC210 – Advanced Canada workers benefit (ACWB) statement (For Tim)
Text version of the above image
RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Ward, Tim
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 Reporting amounts transferred from spouse.
Takeaway points
Steps to follow
- Review their background information and required slips
- Click add spouse next to the Family Head (Tim Ward) sub tab
- In the Family Head (Tim Ward) profile, select Complete information (recommended) from the What information will you provide for your spouse? drop-down menu in the Spouse interview type topic
- Complete the Interview tab for Tim before starting Donna’s Interview tab
- Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information
- Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip
- The tax software automatically calculates and claims the spouse or common-law partner amount (30300) and amounts transferred from your spouse or common-law partner (32600) when applicable
The individual may be able to reduce their federal tax to zero by claiming all or part of certain amounts that their spouse or common-law partner qualifies for but does not need to use towards reducing their own federal tax to zero.
In this case, Donna was eligible for the Age amount on line 30100 of her tax return but had no federal tax to pay. Since this is an amount that may be transferred to a spouse or common-law partner, the tax software automatically transfers the unused portion to Tim on line 32600, Amounts transferred from your spouse or common-law partner, to help reduce his federal tax.
For more information, refer to UFile instructions.
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