I hope this is a simple answer but I can’t seem to find anything in writing. I am preparing a return for a client who became a non resident during 2021 (ruled as such by CRA). She was single at the time she departed & then married before end of year. Do I just leave her status as single/unchanged or does it even matter (given that it doesn’t appear to change her bottom line)? Spouse was never a resident. This has to be paper filed so I don’t want any hiccups…
If you know she is married, and you are filing the tax return, then you should ensure the tax return reflects the facts. Otherwise, you may be responsible for any consequences that arise (i.e. fraudulent filing, etc). Doesn’t matter if the bottom line changes as a result.
Thanks. I just wasn’t sure if the marital status should be as of departure date (being her final CAD return) or as of Dec 31. CRA’s DTS folks couldn’t find the answer, either…
The T1 would cover Jan 1 to Dec 31, regardless of the residency status. It’s the marital status on Dec 31 that you have to report.
Who knows - she might have to file a non-resident return next year, or in some future year, so you can’t say it WILL be her final CAD return. Any future returns will similarly cover the full calendar year (unless it’s a bankruptcy return or something).
Review emigrant rules as to period that should or could be reported. If the emigration date is used for a part-year return, the marirtal status on that date applies. If it is a calendar year return, the Dec 31 maritial status applies.
That’s what even the DTS section couldn’t locate the rules/answer for me! Meanwhile client paper filed the return with 12/31 status so now we just wait and see…