Personal Finance

A likely redundant tax question

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  • Dec 2nd, 2010 9:51 am
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Sr. Member
Aug 25, 2009
582 posts
143 upvotes

A likely redundant tax question

Hi,

If you file with your spouse, and let's say you both make 40K, and the tax brackets are 20% <= 70K and 25% > 70K, are the taxes done independently on each (i.e. 20% on 40K twice) or do you count as 25% on 80K ?

Thanks
2 replies
Deal Addict
Aug 1, 2008
1554 posts
83 upvotes
Ottawa
The question is redundant because there is no 'joint-filing' in Canada. You each file individual returns
and put your spouse's SIN and net income as a link. So the answer to your question is 40 not 80 ;)
Member
Mar 17, 2006
268 posts
13 upvotes
Each individual files their own tax return and tax is calculated per person. However, there are certain tax credits that depend on being married or where the amount is calculated based on the income of both spouses together.

Further, there are planning opportunities where certain deductions/credits can be claimed by either spouse and these would generally be claimed by the higher income spouse.

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