Income tax and common law

[Everest369]

I am preparing to file my income tax for 2006. My common law partner and I want to file together this year, however he is still separated, not divorced.

Previous years he has filed as separated but we were of the understanding that legally we could file as common law this year as we are living common law.

Does anyone know if this is ok or if we are required to file seperatly until his divorce is finalized?

Tks

[Taestoy]

Why would you want to file common law? If you do so your not eligiable for tax breaks or anything else because now your income is added together like a married couple and if either is receiving a gst cheque or anything like that 9 times out of 10 you won't be eligiable anymore.

I also don't think it matters if your not divorced yet and file common law but i could be wrong not sure.

thanks,
T

[Denisem]

I think you have to file as common law after one year living together. Good question, I am going to the CRA site to have a look.

[Everest369]

Thanks Denisem. Let me know what you find out!

Taestoy - as previously mentioned, I have no income at all and we thought we might get a nice return if he claims me as a dependant. Due to his low income, we will likely still get the GST especially as I am not currently contributing to our household income as I have been quite ill and unable to work.

Our 1997 vehicle is on its way out and we were hoping to use any tax refund (resulting from filing common law) to upgrade. And, if the refund was big enough, we were hoping to get me started doing some distance courses to complete my masters degree so that perhaps I could start a home-based business, which would allow me to earn income even though I am ill. That way I could work when I am feeling well and take time off when I am sick. Most employers would not allow me the freedom to do that.

I guess we are just trying to find out what the potential negative impact it may have on our situation, including his divorce.

Thanks

[Denisem]

On the CRA website you must claim common law after one year living together.

[Doris]

Just wanted to let you know that when you file common law it changes everything. The person I live with for three years pays rent and pays for fun things like vacation and eating out etc but I pay the house up keep and repairs (the house is in my name that I've owned for 17 years) he filed common law against my likeing last year well my baby bonus was stopped and GST stopped and I was taxed for the money HE made. The problem here is he never paid for my children or paid for any house repairs and when I got taxed for his income which was his money he said it was my problem. We do not share our incomes. So just be prepared for what happens when you file common law it has been a nightmare for me.

[Doris]

But if you don't share the income and keep everything separate do you still claim common law even though you don't pay for the other person?

[FL_Needs_To_Change]

My thought process being, if I am not treated like a wife upon a breakdown in the relationship, "In the eyes of the law" then why should I claim and get taxed as such? Why should the people who make the laws have their cake an eat it too, when people like me do not. If I left the relationship, even though we share everything 50/50, I would be left with nothing as I have no rights like a married couple, therefore why claim as married if I am not treated a such? Having to fight and prove I contributed does not appeal to me and does not seem fair. If they want to tax us as married we should be treated as such in all legal forms, not pick and choose which laws to apply and which not to.
Just my view.

[Doris]

Dear FL
I agree with your last statement about the government! just because two people live together does Not mean that they share equally all the time, sometimes one does benefit or maybe both do but I think it's up to the individual couple to decide on how they want to file a tax return. My ex husband before paid $850.00 per month in support for me, my partner now makes five times the amount I do and he pays $1,000.00 per month to me in rent and says he supports me, the majority is left on my shoulders. I told him that everyone needs shelter and that $1,000.00 per month for everything is cheap. In 2005 he paid $650.00 a month so I have been helping him.
Now put all this aside I do love him but I have to ask myself why would he say that if I didn't put his name on tittle to the house I own then he would walk, I have never mentioned money to him and just go along to pay the bills and repairs but this sudden interest of force is very scary. Like you said above if he left I wouldn't be entittled to his RRSP's or all his shares not that I'm thinking this way but all I have is this house I have no savings. Am I wrong to feel so afraid?

[FL_Needs_To_Change]

If I was in your position I would be a little concerned.
If this person was not worried about his position in the relationship he would have no reason to say what he said. A threat of "Or I'll walk" raises suspicions as to his intentions. I asked my common law partner about putting my name on the deed to the house, only after we had been living in it together for 10+ years. Prior to our relationship even he was not living in the house, but rather he was renting it out. We moved into it because the cost was more than what he was getting for rent. When we moved in we equally contributed the sweat and tears and the finances to bring it where it is today. Now we are considering a new build, but the bottom line was that I felt that after having contributed so much that I had the right to “ask”. Had he made a fuss, I would have dropped it and knew where he stood about trusting my intentions. He didn't bat an eye and said I deserved to be on it for all of my effort I put into it with him. Correct me if I'm wrong but had I said to him, put my name on it or I walk, he'd probably tell me not to let the door hit me on the butt on my way out. I am often concerned about people in second relationships after a marriage break up, (self included) and their trust levels? Are we subconsciously not as trusting? Probably and with good reason for some. But in this case I would hold off and tell him you don't foresee a problem, acknowledge his contributions and your appreciation and that you will look into what is involved in adding him to the title. See how he reacts and what he says. If he is insistent and impatient, it would lend me to further rethink his intentions. Is he only thinking of himself and not the future of the relationship? Perhaps your relationship is relatively young and he still is feeling some concern as to any woman’s intentions in a relationship, maybe he’s taking the stance of “I need to cover my butt so I don’t get burned again”??? There is a lot you need to consider and only you can make choices for you because you are the only one who knows the whole story. You know you best. Do what feels right for you. It’s not selfish to put yourself ahead him. I apologize if I have over stepped my bounds.

FL