Families

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https://www.canada.ca/en/revenue-agency/services/tax/individuals/community-volunteer-income-tax-program/lend-a-hand-individuals/training-volunteers/scenarios/families.html

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We do not guarantee the accuracy of this copy of the CRA website.

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Families

Before you start

Before preparing a return, ask the individual if they have a spouse, common-law partner, or any dependants. If the individual has a spouse, common-law partner and/or dependants, ensure that you include their information when completing the return. Not providing information for a spouse, common-law partner, or dependants could impact any benefits and credits the family may be entitled to receive.

The UFile software is designed to prepare returns for all family members. For individuals with a spouse and dependant(s), enter the individual’s information, then add the spouse before adding the dependant(s).

Income tax basic concepts

When completing a return for individuals with a spouse or common-law partner, you must indicate whether they are providing complete information for the spouse or common-law partner or only reporting their net income on the individual’s return. If you are completing a return for each spouse or common-law partner:

each spouse must be present when completing their return
- if an individual is absent, the person representing them must provide proof of Power of Attorney. For more information, see Validating the individual's identification.
a separate return must be filed for each spouse
each spouse must complete and sign their own Form TIS60, Taxpayer Authorization

Important note

If you provide net income only for an individual’s spouse or common-law partner, but the individual does not know the exact amount, an estimate of their spouse or common-law partner’s net income amount can be used. It is not recommended that you use an estimate that is lower than their actual income. Doing so could lead to incorrect benefit payments and could cause delays, interest charges, and penalties.

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Need to know
Married means that someone has a spouse and that they are legally married.

Common-law refers to someone who lives in a marriage-like relationship with another person but is not legally married to that person, and at least one of the following situations applies:
- the individual and their partner have lived together in a marriage-like relationship for at least 12 months in a row (including any time they were separated for less than 90 days because of a breakdown in the relationship)
- the individual has a child with their partner by birth or adoption
- the individual's partner has custody and control of the individual's child (or had custody and control immediately before the child turned 19 years of age), and the child depends entirely on the individual's common-law partner for support
For more information on marital status, see Income tax basic concepts.

A dependant is wholly reliant on another individual for support. They must also be either the individual’s: parent or grandparent, child or grandchild, brother or sister, uncle or aunt, niece or nephew, by blood, marriage, common-law partner, or adoption.

Deductions

Deductions are amounts that reduce an individual’s income and, as a result, may lower the amount of income tax an individual has to pay.

Child care expenses are amounts an individual paid to have someone look after an eligible child so that they, and their spouse (if applicable), could:
- earn income from employment
- carry on a business either alone or as an active partner
- attend school under the conditions of an educational program
- carry on research or similar work for which a grant was received
An eligible child is one of the following:
- the individual or the individual’s spouse’s or common-law partner’s child
- a child who was dependent on the individual or the individual’s spouse or common-law partner for support and whose income for the year does not exceed the basic personal amount
The child must have been under 16 years of age at some time in the year. However, the age limit does not apply if the child had an impairment in physical or mental function and was dependent on the individual or the individual’s spouse or common-law partner.

Generally, the child care expenses are claimed by the lower net income individual. However, there are situations when the individual with the higher net income may claim the child care expenses.

These situations are considered child care – special cases if the lower net income person:
- attended school and was enrolled in a part-time or full-time educational program
- was mentally or physically infirmed
- was incarcerated
The child care expenses can be claimed by the higher net income individual or in part, by both individuals. In this situation, the person with the higher net income must calculate the claim first.

If you are completing returns for both individuals, UFile will automatically calculate the child care expense claim for each individual based on the number of weeks entered under the individual's profile with the higher net income. You will find more information on how to input child care expenses in our screen-by-screen instructions.

Non-refundable tax credits

Non-refundable tax credits are amounts that an individual can claim to help reduce or eliminate their tax payable. However, if the total of these credits is more than the tax payable, there will not be a refund for the difference. For more information, see Non-refundable tax credits.
Note

For more information on the eligibility criteria for the specific credits being claimed, refer to the Federal Income Tax and Benefit Guide.
Screen-by-screen instructions

Disclaimer

This training uses screenshots taken from prior versions of the UFile CVITP software. Consequently, the images may differ slightly from the current version of UFile CVITP. The content is accurate, and generally, the only difference will be the tax year being referenced. Should the current year’s software contain any significant changes, a new screenshot will be published as soon as possible.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Identification topic is highlighted

Marital status on December 31, 2019, is highlighted

The following drop-down menu is highlighted:

Single

Common-law spouse (or separated for less than 90 days)

Married (or separated for less than 90 days)

Widowed

Separated

Divorced
Marital status

Family Head is used by the tax software to indicate the first individual entered into UFile, and the second individual will be referred to as Spouse or Dependant.

Select the individual’s marital status as of December 31, 2021, on the Identification page of the Interview section

Note: Remember that the individual’s spouse must be present to complete a tax return on their behalf. Do not forget to have each spouse complete and sign their own Form TIS60, Taxpayer Authorization.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Identification topic is highlighted

Did your marital status change in 2019 (including separated for less than 90 days) is highlighted

Change is highlighted
Marital status change

If the individual indicates that there has been a marital status change in the tax year, select Change when answering the question Did your marital status change in 2021 (including separated for less than 90 days)?

Click Next
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Marital status change topic is highlighted

Change of marital status in 2018 page

Change in your marital status in 2018 is highlighted
Marital status change

Note: If you selected Change when answering the question Did your marital status change in 2021 (including separated for less than 90 days)?, a new page called Marital status change will appear in the left side menu.

Under Change of marital status in 2021, select the appropriate marital status from the drop-down menu for Change in your marital status in 2021

for example, if the individual was married but considered separated on December 31, 2021, select Married, then separated
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Marital status change topic is highlighted

Change of marital status in 2018 page

Date of change in your marital status (dd-mm-2018) is highlighted
Marital status change

Enter the effective date of the change

Note: Enter the date that the change occurred. For example, the date they got married or when they started living separate and apart.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Spouse interview type topic is highlighted

Type of information you wish to provide about your spouse page

Complete information (recommended) is highlighted
Spouse interview type

Note: If the individual has a spouse or common-law partner, you must indicate whether you will:

complete a tax return for the spouse or common-law partner

only report the net income of the spouse or common-law partner

On the Spouse interview type page, use the drop-down menu to select which option you want to proceed with:

Complete information (recommended)

Net income only
Text version

UFile screen

Under Interview tab

Add spouse sub-tab is highlighted
Add spouse

Click add spouse
Text version

UFile screen

Under Interview tab

Spouse sub-tab is highlighted

Spouse Identification page
Spouse Identification

Fill in the spouse’s identification information

Note: The spouse’s name is displayed beside the Family Head’s name.

Proceed through the interview questions for the spouse, just as you did for the family head, entering information about the spouse’s income, deductions, and non-refundable tax credits

Click Next after each completed page

Note: When you reach the end of the interviews for the family head and the spouse, UFile will generate two returns. Each return must be filed separately.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Spouse - basic information topic is highlighted

Spouse – basic information page

Was your spouse a Canadian resident in 2019 (Not applicable for immigrants)? is highlighted

Spouse – basic information

Note: If you are completing the Spouse - basic information page for a non-resident spouse, make sure you indicate that the spouse was not a resident of Canada in 2021.

Individuals may claim the spousal amount for a non-resident spouse or common-law partner that depended on them for financial support. The CRA will review these amounts on a case-by-case basis.

If the spouse or common-law partner had sufficient income to maintain a reasonable standard of living in their home country, they would not be considered as a dependent, and as such, you must provide any income they earned.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Add dependant sub-tab is highlighted
How to add a dependant

Select + add dependant

Note: It is important to add all dependants into UFile to ensure that the individuals involved are receiving all the benefits and credits to which they are entitled.
Text version

UFile screen

Under Interview tab

Dependant sub-tab is highlighted

Left-hand topic menu is highlighted as follows:

Dependant ID

Interview setup

Interest, investment income and carrying charges

Medical and disability

HBP, LLP and other plans and funds

RRSP contributions, limits

Tuition, education, student loans

Other deductions and credits

Prior year information

Refund/balance owing

Controls

Other topics

Where to enter?
Dependant

Enter the dependant’s information in the Dependant Identification section (follow the same process as for the family head)

The left side menu automatically populates the most common credits that individuals may be entitled to claim for their dependants:

Medical and disability

Tuition, education, student loans

Other deductions and credits

Some credits, such as child care expenses, will populate when you complete the Dependant Identification.
Text version

UFile screen

Under Interview tab

Dependant sub-tab

Interview setup topic is highlighted

Interview setup section is highlighted
Interview setup

In the Interview setup, check the boxes that apply to the dependant’s tax situation

This will prompt the program to ask questions about their income, deductions, and credits.

If none of the boxes apply, click Next
Text version

UFile screen

Under Interview tab

Dependant sub-tab

Controls topic is highlighted

Controls for dependant’s tax return page

Let MaxBack decide is highlighted
Controls for dependant

Note: Some credits, such as the disability amount, may be transferred between spouses or between parents and children.

Other non-refundable tax credits, such as medical expenses and charitable donations, may be combined to get the best tax advantage for the family. When all family members living in the same household are entered into UFile, the software can find and apply all possible deductions, credits, and transfers.

By choosing Let MaxBack decide, UFile will use the most advantageous calculation for all of the returns being prepared for the family
Text version

UFile screen

Under Interview tab

Dependant sub-tab

Controls topic is highlighted

Claim this dependant as the eligible dependant on federal line 30400? is highlighted

Do not claim is highlighted
Controls for dependant – Amount for an eligible dependant

If the individual cannot claim the amount for an eligible dependant, select Do not claim to the question Claim this dependant as the eligible dependant on federal line 30400?

For more details, see What are the situations in which you cannot claim the amount for an eligible dependant?
Text version

UFile screen

Under Interview tab

Dependant sub-tab

Child care topic is highlighted

Child care expenses incurred for this dependant page
Claiming child care expenses

Click Child care in the left side menu of the Dependant’s profile

Then select the type of child care expenses:

daycare (includes day camp)

camp (dependant stayed overnight)

boarding school

babysitter

Note: If the individual has more than one child that they paid child care expenses for, you must enter the expenses for each child separately and claim the expenses for each child in their individual profiles.
Text version

UFile screen

Under Interview tab

Dependant sub-tab

Daycare topic is highlighted

Child care expenses – Daycare section is highlighted
Child care expenses – Daycare

Enter the appropriate child care expense details

Click Next

Note: In most cases, whether a married couple or a common-law partnership, the child care expenses must be claimed on the return of the individual who has the lower net income. UFile will automatically determine whose return the child care expenses should be claimed on.
Text version

UFile screen

Under Interview tab

Family Head sub-tab

Interview setup topic is highlighted

Child care (special cases) is checked and highlighted
Child care expenses - Special cases

There are situations when the individual with the higher net income may claim the child care expenses. These situations exist when the individual with the lower net income attended school, was incarcerated or was mentally or physically infirm. The UFile software considers these to be child care special cases.

In addition to claiming the child care expenses under the dependant’s profile, you must also select Child care (special cases) on the Interview setup page of the individual with the higher net income

Under the profile for the individual with the higher net income, click Interview setup in the left side menu, then select Child care (special cases) from the Parents and children section

Click Next
Text version

UFile screen

Under Interview tab

Higher Income sub-tab

Child care (special cases) topic is highlighted

Child care deduction (special cases) page

A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s is highlighted
Child care expenses - Special cases (continued)

Select Child care (special cases) from the left side menu and click the + sign next to A special situation allows you to claim child care expenses even though your earnings are higher than your spouse’s from the Child care deduction section
Text version

UFile screen

Under Interview tab

Higher Income sub-tab

Higher earner eligible to claim the child care deduction page

Number of weeks of support by the higher income earner section is highlighted
Child care expenses - Special cases (continued)

Under the Higher Income earner’s profile, enter the number of weeks during the year that any of the special cases listed are relevant to their situation

Click Next

UFile will then calculate how much of the child care expenses can be claimed on the higher net income individual’s income tax return. If any amounts can be claimed on the lower income earner's income tax return, UFile will automatically claim them based on the information provided.

Example 1: Amounts transferred from spouse

Instructions: Practice entering information into the mock profile

Open the UFile CVITP software and use the background information, slips required (tax slips, receipts, etc.), and points to remember sections provided in the example to enter all the necessary information. Once completed, compare your results with the solution provided.

Disclaimer

Examples have been created using fictional names. Any resemblance to persons real, imaginary, or deceased is purely coincidental. There is no intention for examples to depict stereotyping on any basis.

Background information

Name	Tim Ward
Social insurance number (SIN)	000 000 000
Address	123 Main Street City, Province X0X 0X0
Date of birth	August 08, 1956
Marital status	Married to: Donna Ward on June 7, 1986 SIN: 000 000 000 DOB: June 13, 1953

Slips required:

T4 – Statement of Remuneration Paid (for Tim)
T4 – Statement of Remuneration Paid (for Donna)

Points to remember:

Add spouse under the Family Head (Tim)
Select Complete information (recommended) for spouse
Complete the Interview with Tim before moving on to Donna’s Interview
UFile will automatically calculate and claim the spouse or common-law partner amount (30300) and amounts transferred from your spouse or common-law partner (32600) when applicable

Information slip for Tim:

T4 – Statement of Remuneration Paid

Text version

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 – line 10100: 38,123.00

Box 16: Employee’s CPP contributions – line 30800: 1,310.11

Box 18: Employee’s EI premiums – line 31200: 600.00

Box 22: Income tax deducted – line 43700: 3,566.12

Box 24: EI insurable earnings: 38,123.00

Box 26: CPP/QPP pensionable earnings: 38,123.00

Information slip for Donna:

T4 – Statement of Remuneration Paid

Text version

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 – line 10100: 7,500.00

Box 16: Employee’s CPP contributions – line 30800: 204.00

Box 18: Employee’s EI premiums – line 31200: 115.00

Box 22: Income tax deducted – line 43700: 700.00

Box 24: EI insurable earnings: 7,500.00

Box 26: CPP/QPP pensionable earnings: 7,500.00

Solution 1: Amounts transferred from spouse

Instructions

This solution was calculated using the 2021 version of UFile CVITP, with Ontario as the province of residence. To validate your results, refer to the federal totals generated on lines 15000, 23600, 26000, and 42000. Calculations may vary depending on the province/territory selected in the Identification section. To view your results, click the Federal summary link found under the Review tab when you have completed the example.

Text version

Tim Ward

Total income

10100 Employment income: $38,123.00

15000 Total income: $38,123.00

Net income

22215 Deductions for CPP and QPP enhanced contributions: $120.19

23600 Net income: $38,002.81

Taxable income

26000 Taxable income: $38,002.81

Non refundable tax credits

30000 Basic personal amount: $13,808.00

30100 Age amount: $7,713.00

30300 Spousal or common-law partner amount: $6,326.72

30800 CPP or QPP contributions through employment: $1,189.92

31200 Employment Insurance premiums through employment: $600.00

31260 Canada employment amount: $1,257.00

32600 Amounts transferred from your spouse or common-law partner: $7,713.00

33500 Total: $38,607.64

33800 Total @ 15%: $5,791.15

35000 Non refundable tax credits: $5,791.15

Refund or balance owing

42900 Basic federal tax: $0.00

40500 Federal foreign tax credit (T2209): $0.00

40600 Federal tax: $0.00

42000 Net federal tax: $0.00

42800 Provincial or territorial tax: $977.87

43500 Total payable: $977.87

43700 Total income tax deducted: $3,566.12

Payments and credits

45300 Canada workers benefit (CWB) (schedule 6): $629.13

48200 Total credits: $4,195.25

48400 Refund: $3,217.38

Donna Ward

Total income

10100 Employment income: $7,500.00

15000 Total income: $7,500.00

Net income

22215 Deductions for CPP and QPP enhanced contributions: $18.72

23600 Net income: $7,481.28

Taxable income

26000 Taxable income: $7,481.28

Non refundable tax credits

30000 Basic personal amount: $13,808.00

30100 Age amount: $7,713.00

30300 Spousal or common-law partner amount:

30800 CPP or QPP contributions through employment: $185.28

31200 Employment Insurance premiums through employment: $115.00

31260 Canada employment amount: $1,257.00

32600 Amounts transferred from your spouse or common-law partner:

33500 Total: $23,078.28

33800 Total @ 15%: $3,461.74

35000 Non refundable tax credits: $3,461.74

Refund or balance owing

42900 Basic federal tax: $0.00

40500 Federal foreign tax credit (T2209): $0.00

40600 Federal tax: $0.00

42000 Net federal tax: $0.00

42800 Provincial or territorial tax: $0.00

43500 Total payable: $0.00

43700 Total income tax deducted: $700.00

Payments and credits

45300 Canada workers benefit (CWB) (schedule 6)48200 Total credits: $700.00

48400 Refund: $700.00

Example 2: Employed individual with two children