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T5 slip (interests) : Can it be claimed fully by the spouse ?

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[OP]
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Dec 23, 2005
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T5 slip (interests) : Can it be claimed fully by the spouse ?

Hi,
My T5 slip has my name and my wife name on it. My wife does not work so we do the Tax return together.

Can I put the slip amount on her tax return part? The tax return has like a percentage for sharing? When I put the amount only on her or put it on mine and put 0% sharing, I got some more savings.
The original money is shared between me and my wife in a shared account (yes, I made it but it is shared not a big deal). The interests are used for my children living costs.

Is that my right to put 100% interests on my wife tax return or it considers as a lie.
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Dec 3, 2003
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tasamy wrote:
Feb 27th, 2007 9:02 pm
Hi,
My T5 slip has my name and my wife name on it. My wife does not work so we do the Tax return together.

Can I put the slip amount on her tax return part? The tax return has like a percentage for sharing? When I put the amount only on her or put it on mine and put 0% sharing, I got some more savings.
The original money is shared between me and my wife in a shared account (yes, I made it but it is shared not a big deal). The interests are used for my children living costs.

Is that my right to put 100% interests on my wife tax return or it considers as a lie.
It is a lie considering you are well aware.
Rule of Thumb: Claim whatever your contributions to the savings account are.

Anyways, we are probably just talking about a few bucks, right?
Do the right thing.
[OP]
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controlyar wrote:
Feb 27th, 2007 9:37 pm
It is a lie considering you are well aware.
Rule of Thumb: Claim whatever your contributions to the savings account are.

Anyways, we are probably just talking about a few bucks, right?
Do the right thing.
First, it my first time to file my taxes as a worker so please execuse my ignorance. Second, I am not fully aware of the rules, sometime the goverment say put the benefit in the low income side (spouse in my case) like the universal child benefit. I want to do the right thing, so it seems from your response that it is the right thing is to claim all the money in my side. But there is another point, the slip is on our names so may be a 50-50 solution is also a correct thing especially the money went to the family.

So do we have two correct solutions ?
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Jul 27, 2004
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the correct solution is to report the interest earned in the same proportion as the funds that were contributed into the account that earned the income.
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15-20_God wrote:
Feb 27th, 2007 11:24 pm
the correct solution is to report the interest earned in the same proportion as the funds that were contributed into the account that earned the income.
concur

so you would claim all the income in your return only. The fact that you earned it in a joint account does not matter. The interest was generated from your contribution only, your wife is not working.
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what if interest came from joint 0% mbna credit card?? 50/50? :D
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Nov 19, 2004
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Or what if one spouse earns the money for the family but just leaves it in a chequing account earning nothing cause he doesn't care, but the other spouse, does the research and puts the effort into investing it into proper savings accounts that actually earn interest. Who should claim?

I know it is the income earner but really the income earner in this case really didn't earn the interest, the spouse did!
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Nov 24, 2005
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I don't work, but we've always split the interest 50 - 50 on our returns. In fact, the many years we used an accountant, I'd just hand over the receipts, and he entered them as 50 - 50 himself.

Besides, if we split up, half that money would be mine anyway. :lol:

In fact, it's half mine now - what's mine is his and what's his is mine.

or

what's his is mine, and what's mine is mine. LOL
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tvwatcher wrote:
Mar 2nd, 2007 6:46 pm
I don't work, but we've always split the interest 50 - 50 on our returns. In fact, the many years we used an accountant, I'd just hand over the receipts, and he entered them as 50 - 50 himself.

Besides, if we split up, half that money would be mine anyway. :lol:

In fact, it's half mine now - what's mine is his and what's his is mine.

or

what's his is mine, and what's mine is mine. LOL
is this legal? what if you get audit
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tasamy wrote:
Feb 27th, 2007 9:02 pm
Hi,
My T5 slip has my name and my wife name on it. My wife does not work so we do the Tax return together.

Can I put the slip amount on her tax return part? The tax return has like a percentage for sharing? When I put the amount only on her or put it on mine and put 0% sharing, I got some more savings.
The original money is shared between me and my wife in a shared account (yes, I made it but it is shared not a big deal). The interests are used for my children living costs.

Is that my right to put 100% interests on my wife tax return or it considers as a lie.
CRA doesn't care whose money it is when it is spent. CRA does step up when you have return on money invested - income attribution rule kicks in.

You can not arbitrarily include investment income in one spouse's income over the other. It has to be included in the income of spouse who have earned the money for the investment. If it's a joint account and both spouses have contributed, the income is split proportionally to contribution. If the account is 100% funded with your money all income has to be claimed by you. If your wife has an individual investment account that's funded by you, all income has to be claimed by you and you pay tax on it. However, the investment income is her property, and any secondary income is hers to claim.

A good income splitting practice is that your wife sets up two accounts, one funded with your money and the other funded with her own money. Any income in the first account is attributed to your and you pay tax on it. The same amount is immediately transferred to the second account to earn income that can be fully attributed to her.
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don242 wrote:
Mar 2nd, 2007 6:16 pm
Or what if one spouse earns the money for the family but just leaves it in a chequing account earning nothing cause he doesn't care, but the other spouse, does the research and puts the effort into investing it into proper savings accounts that actually earn interest. Who should claim?

I know it is the income earner but really the income earner in this case really didn't earn the interest, the spouse did!
It's no different than hiring an investment firm to do the research and to take care of the investment/savings account. One spouse pays a fee that is deductible; the other spouse receives the fee that is income and taxable. And the fee has to be reasonable - what would normally be charged if done by a third party.
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Nov 27, 2010
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It's wrong. Anyone can claim.
CRA recognizes that more than one person can claim the income provided that in box 23 on the T5 the code is "2", which indicates a joint account. If this code appears, the income may be claimed by either or both of the joint accountholders.

http://www.investorsedge.cibc.com/ie/fo ... -file.html
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Sep 11, 2005
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Shaul wrote:
Aug 11th, 2011 7:20 pm
It's wrong. Anyone can claim.
CRA recognizes that more than one person can claim the income provided that in box 23 on the T5 the code is "2", which indicates a joint account. If this code appears, the income may be claimed by either or both of the joint accountholders.

http://www.investorsedge.cibc.com/ie/fo ... -file.html
Anyone got any more recent links for this?
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P90Puma wrote:
Feb 26th, 2018 9:42 pm
Anyone got any more recent links for this?
No matter how you spin it, attribution rules apply. If one spouse is earning all the income, then they have to claim it. It doesn't matter if it is a joint account, or even if it is an individual account in the name of the person not earning the income.
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don242 wrote:
Feb 26th, 2018 9:59 pm
No matter how you spin it, attribution rules apply. If one spouse is earning all the income, then they have to claim it. It doesn't matter if it is a joint account, or even if it is an individual account in the name of the person not earning the income.

For our situation we both work and the T5 is interest on our joint account.

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