I have the following situation, and I cannot seem to get the software to accept it.
Spouse #1 - in 2020, lived in Ontario, but passed away before Dec 31
Spouse #2 - in 2020, lived in Ontario, but moved to Manitoba after death of spouse, but before Dec 31.
I cannot seem to get the software to accept Spouse #1’s provincial residency as ON (never made it to MB), while having Spouse #2 report their province of residency as MB. If I change residency on one spouse, the other is changed to match.
How do I deal with this, short of separating the taxpayers? Separating makes it more difficult to transfer any credits between the returns.
On the Info page, on the deceased taxpayer’s return, put residency as Ontario.
Address is still the same as spouse (using the “Care of” line) and will be the MB address
The residency of the deceased spouse should be ON and the residency of the surviving spouse should be MB. When residency of one taxpayer is changed, the spousal residency changes as well. It appears different provinces are not allow for spousal returns.
What if you leave the “Province…of residence” as Manitoba for both taxpayers, and add the date when “…province…of residence changed…”? This will be after the date of death, so presumably CRA’s system will flag it as an error, and perhaps this can be fixed manually by them? Not sure if this affects anything in TaxCycle - calculation of provincial benefits, etc.
Additionally, perhaps you could set the “Province or territory where currently resides if it is not the same as the mailing address” to Ontario? Would sort of make sense, if he is buried in Ontario…
Maybe you can set the province of residence to Ontario, file the deceased taxpayer return, then change the province of residence to Manitoba and file the widow’s return?
I haven’t encountered this particular issue, but have in the past run into anomalies that tax software can’t seem to cope with. I suggest preparing the returns as coupled, then, as the last step before printing and filing, uncouple them and adjust the residencies to the correct settings.
I don’t see any solution to this post from last year. I am currently running into the same issue (Taxpayer 1 dies in a province, and spouse moves to a different province before Dec 31st - so need to file each spouse with different province of residence). Has TaxCycle created a solution for it, or is there a good work around (while keeping them attached for credits and pension splitting)?