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2010 Income Tax Return

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  • 2010 Income Tax Return

    my wife and I separated in April of 2010 and have been living in separate parts of the house since. During this time my wife had been exploring work opportunities at home that could allow her to remain at home after divorce. This was not successful and she has just started back to working full time a couple of weeks ago. We have discussed our separation agreement and custody arrangements (plan to do a 50/50 split custody) but have not formally split our finances or discussed our situations with lawyers. We have three young children.

    Does anyone have any advice regarding how we go about completing our income tax return for last year? I assume that we check off "Separated" but given that we have not formally separated our finances I'm confused how we go from there. There was not any formal spousal support however we both had equal access to our family income which happend to be my income. If someone could point me in the right direction for some reference material with CRA or other that would be great.

    Thank-you very much,

  • #2
    Seems that from what you just described, you have been living as a married couple in every way except in the bedroom. Not sharing a bedroom is not grounds for being "separated" when it comes to filing your income tax returns.

    Found this ...

    "Below is a link to a Tax Court case where it was decided that they were living separate and apart, although living in the same house. If you read the whole case you will get a good idea of what you would have to show to convince CRA that you were living separate and apart. Starting at paragraph 18 it talks about the test to show separate and apart.

    If you weren't living separate and apart, if you were sharing meals, supporting one another, sharing household chores, then you would be considered still married under the Income Tax Act, even if you consider yourselves separated.

    So, you may not be forced to claim married, but to show otherwise will depend on your particular facts, and you will need to be able to demonstrate the truth of those facts. "

    Rangwala v. The Queen - Tax Court of Canada

    keep in mind - with CRA, you are guilty until proven innocent - not the other way around.

    CRA recognizes that there are benefits (and money) that you may receive if you file as "separated" and if they question it, it will be up to you to prove that you are indeed living "separate and apart".


    • #3
      I'm a tax accountant. If you are still living under the same roof, you are not separated for income tax purposes.


      • #4
        Simple is as Simple does .....


        • #5
          and that was a joke ....


          • #6
            even though it is true


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