How long do you have to be separated to report to CRA?

To report a separation to the Canada Revenue Agency (CRA), you and your spouse or common-law partner must have been separated for a period of at least 90 days due to a breakdown in the relationship. Once this 90-day period has passed, you are required to inform the CRA about the change in your marital status.

When you are required to notify the CRA?

You are required to inform the CRA about your change in marital status by the end of the month following the month your status changed. For example, if you get married, enter into a common-law partnership, divorce, or your spouse or common-law partner passes away, you must inform the CRA by the end of the next month after the change occurs. For example, if you separated on June 1 and remained separated for at least 90 days, you should inform the CRA by the end of October.

How do you report your change in marital status?

You can report a change in marital status to the CRA through various methods:

• Online: By using the “Change my marital status” service in My Account on the CRA website.
• By phone: By calling the general enquiries line: 1-800-387-1193
• By mail: By sending a completed Form RC65, Marital Status Change, to the CRA.

It is important to report changes in your marital status to ensure you are receiving the correct amount of benefits and credits you are entitled to and to avoid potential overpayments, which you would need to repay.

What requirements do you need to meet to have CRA consider you to be in a common-law relationship?

The Canada Revenue Agency (CRA) has specific criteria to define a common-law partnership for tax and benefit purposes. According to the CRA, you are in a common-law relationship if you meet the following conditions:

• Cohabitation: You live in a conjugal relationship with a person who is not your spouse.
• Duration: You have been living with your partner in a conjugal relationship for at least 12 continuous months. This includes any period you were separated for less than 90 days because of a breakdown in the relationship.

Additionally, the CRA also considers you to be in a common-law relationship under the following circumstances, regardless of the time you have lived together:

• If you and your partner have a child together by birth or adoption.
• If you have custody and control of your partner’s child (or they have custody and control of your child) and the child is wholly dependent on that person for support.

If you separate and live in the same house, are you separated according to the CRA?

Yes, the Canada Revenue Agency (CRA) can consider you to be separated even if you and your spouse or common-law partner continue to live in the same house, provided certain conditions are met.

Living separate and apart while under the same roof means that you and your partner have stopped living as a couple. This can be demonstrated through various changes in how you and your partner interact and manage your lives, including but not limited to:

• Sleeping in separate rooms.
• Eating meals separately.
• Performing household chores, banking, and other domestic activities independently.
• A clear division of financial responsibilities.
• Minimal or no communication or social interaction between you as a couple.

The key aspect the CRA looks for is the breakdown in the conjugal relationship, not necessarily the physical separation. It’s essential to document the changes in your living arrangement and relationship status, as the CRA may require proof of your claim that you are living separate and apart while remaining in the same house.

What are the exceptions to CRA not considering you separated?

However, there are situations where you may live separate and apart but the CRA does not consider you separated for tax and benefit purposes. Here are some of those exceptions:

• Short-Term Separation: If you and your spouse or common-law partner are separated temporarily with the intention to reconcile, and the separation lasts less than 90 days, the CRA does not consider you to be separated. This can include separations due to work obligations, travel, medical reasons, or other temporary circumstances where the intent is to resume the relationship.
• Voluntary Separation for Reasons Other Than a Relationship Breakdown: If you and your partner choose to live apart for reasons other than a breakdown in your conjugal relationship (for example, for work or education purposes), the CRA may not consider this a separation for the purposes of assessing your tax and benefit entitlements.
• Lack of Changes in Domestic Arrangements: If you claim to be separated but continue to maintain a conjugal relationship or present yourselves in public as a couple, sharing financial responsibilities, and living as if you were not separated, the CRA may not recognize the separation. The agency looks for evidence of a significant change in the relationship, not just physical separation.

Why is it important to keep the CRA aware of your marital status?

Keeping the Canada Revenue Agency (CRA) informed about your marital status is crucial for several reasons, as it directly impacts the calculation of your taxes and eligibility for various benefits and credits. Here’s why it’s important:

Accurate Benefit Payments: Your marital status affects your eligibility for government benefits and credits, such as the Canada Child Benefit (CCB), the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, and provincial or territorial benefits. Reporting your correct marital status ensures you receive the right amount of benefits for which you and your family are eligible.

Correct Tax Calculations: Certain tax credits and deductions depend on your marital status, such as the spousal amount, the eligible dependent credit, and the splitting of certain pension incomes. Accurately reporting your marital status helps ensure that you’re taking advantage of all the tax savings available to you and avoiding any potential issues with the CRA.

Avoidance of Overpayments and Penalties: If you receive benefits based on incorrect marital status, you might have to repay any overpayments. The CRA periodically checks and if they find discrepancies, you might also face penalties or interest on amounts owed. Keeping the CRA updated helps prevent these situations.

Compliance with Tax Laws: Reporting your marital status accurately is a legal requirement under Canadian tax law. Failing to inform the CRA about a change in marital status could be considered non-compliance, which could lead to audits or reassessments.

Efficient Processing of Returns and Adjustments: When the CRA has your current marital status, it can more efficiently process your tax returns and any necessary adjustments. This can lead to quicker refunds or the proper application of benefits.

Optimized Benefit and Credit Allocation: For couples, accurately reporting whether you are married or in a common-law partnership can optimize the allocation of credits and benefits between partners, potentially resulting in greater overall financial benefits for the household.