TaxCycle | Products | Pricing | Training | Documentation | Support | News

Unknown Spouse Income

I have client who was common law at the end of the year but is no longer in the relationship. Does not have access to their Net Income. Wont be transferring any credits and won’t qualify for GST. Have entered SIN but says I must enter their net income. If not transferring any amounts is there away to submit without entering their Net Income.

If you don’t enter the spouse’s income, you (or TaxCycle) can’t calculate the spousal deductions properly. If you leave spouse net income as zero, your client will get the full basic exemption for the spouse, which may be incorrect. You could estimate the spouse’s income high enough to eliminate any spousal transfers, or change the marital status to “Separated” as of Dec 31. But, neither of these is entirely correct.

We had a similar setting last year where the income was not available but we knew it was too high to claim any spousal credits. We did an override on Sch 5 line 5 and ON428 line 3 and entered zeros. This removed the spousal credit claims and we didn’t have to incorrectly report the spouses income as zero…

1 Like