The tax returns filed will be affected by your marital status. Canada allows you to file separate tax returns, but you must mention your marital status.
You may be wondering, “What happens if I file single instead of married?”. The answer is that you could face additional penalties or interest for filing single.
Let’s get to the bottom of tax filing in Canada.
After Marriage
Canada’s income tax returns cannot be jointly filed by your spouses or common-law partners. You must, however, mention your marital status in the tax return files. You must also include the information of your spouse.
It is mandatory to include the marital status in your tax return file after you have married. You cannot decide whether or not to include the information.
However, Canadian law states that you must file as common law if you have a child or live together for more than 12 months.
The CRA can determine marital status based on the information you provide. This information could include your name and the deductions or credits you are applying for.
What happens to me if I accidentally file single instead of married?
The income-tested benefits are combined with family income because marital status is crucial. Income-tested benefits include GST credits and HST credits, as well as child benefits. Couple tax benefits also allow for charitable donations and medical expenses.
It is illegal to file a single tax return when you mistakenly file one for married. You will need to repay any benefits you have received due to the incorrect marital status. You would also be required to pay interest and a penalty.
You must pay the tax due if you are caught for tax evasion. The CRA will determine the value. The court can also fine you up 200% or sentence you to imprisonment for five years or more.
How do I update my marital status?
If your marital status changes, you should notify the CRA immediately. The change can be caused by many factors, including:
- Marriage
- Common-law marriage
- Separated for at least 90 days
- Breakups in relationships
- Divorce
- Common law was abolished
- Spouse died
How do I contact the CRA about a marital status change?
It’s easy to inform CRA about marital status or date changes. These steps may help:
- Go to My Account, then click “Change my marital status”.
- Next, go to the MyBenefits CRA “Marital status”.
- Next, call them and let them know.
- You must complete and submit the marital status modification form.
How do I tell the CRA?
The CRA must be notified as soon as you are married, widowed or enter a common law relationship.
You must inform the CRA within the first month following the month in which your marital status has changed.
If your marital status changes in January for example, notify the CRA by February. If you are going to separate from your partner for more than 90 days, the CRA should be notified.
What should I do if my name changes?
Sometimes you and your partner may decide to change the name. You must notify the CRA by calling them. They will update your information as quickly as possible and take the necessary steps.
What do I do after I have completed my tax return?
It is important to correctly indicate marital status when filling out tax returns. You should mark the appropriate box if you have entered into a common-law marriage or with a spouse.
Sometimes, even when they are not experiencing a breakup, couples can live apart. Even if you’re not divorced or separated, it is important to keep your head on straight.
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Final verdict
Continue reading to find out “What happens if my mistakenly filed single instead of married?”
You can seek the advice of professionals to avoid these problems. They can offer better advice as they have experience with these issues.
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