Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
An individual indicated that she has been legally separated from her spouse since XXXXXXXXXX As her husband did not have a source of income, she has permitted him to live in the basement of her residence since XXXXXXXXXX The individual has indicated that she financially supported him from the time he moved into her residence.
The issue is whether the individual is entitled to the married tax credit for the years 1993, 4, and 5.
Position:
Provided the individual does satisfy the necessary requirements, she would be entitled to claim the married tax credit.
Reasons:
Pursuant to the wording in paragraph 118(1)(a) of the Act, the individual must be married and support her husband. It is a question of fact whether she has supported him.
July 22, 1996
Toronto Centre Tax HEADQUARTERS
Services Office M. Eisner
Maria Kollar
P. R.P. 961294
Married Tax Credit
This is in reply to your memorandum of April 11, 1996, concerning the above-noted subject.
In the correspondence you enclosed, XXXXXXXXXX (the wife) indicated that she has been legally separated from her husband since XXXXXXXXXX However, as the husband has not had a source of income, he has been living in the basement of the wife's home since XXXXXXXXXX The wife has indicated that she has supported him financially from the time he moved into her residence.
For the 1995 taxation year, the wife claimed the married tax credit under paragraph 118(1)(a) of the Income Tax Act (the Act). As she has now requested an adjustment to her 1993 and 1994 tax returns, you have asked us for our comments on whether she is entitled to claim the married tax credit.
In our comments below, we have assumed that the wife has not claimed a tax credit under paragraph 118(1)(b) of the Act and that for the purposes of subsection 118(5) of the Act, is not entitled to a deduction under paragraph 60(b), (c) or (c.1) of the Act.
In order for an individual to make a claim under paragraph 118(1)(a) of the Act, an individual must be a "married" person who "supports" his or her spouse. It is our view that the wife would be eligible to claim the married tax credit if she satisfies these requirements. While the information provided by the wife suggests that the two requirements have been satisfied, you may wish to make further inquiries and carryout some verification procedures to ensure that her claim is valid, i.e. she is in fact financially supporting her husband and he has no income.
Should you require further technical assistance, we would be pleased to provide our views.
John F. Oulton
Section Chief
Business, Property & Personal Section
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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