Maximizing Your Tax Refund: A Guide for Couples

How to File Taxes as a Couple – Tips for Maximum Refund

Filing your taxes as a couple in Canada is more than just submitting two tax returns. When done correctly, couples can unlock thousands of dollars in savings by sharing deductions, splitting income, and optimizing credits. The CRA allows many benefits specifically designed for married and common-law couples — but only if you know how to use them.

Here’s a simple guide to help you get the biggest refund possible.

1. Make Sure Your Marital Status Is Updated

Your marital status as of December 31 determines how you file.
You must inform the CRA when:

• You get married,

• You become common-law (after 12 months of living together),

• You separate for more than 90 days.

Updating your status ensures you receive the correct benefits, such as GST/HST, CCB, and applicable credits for couples.

2. Claim the Spousal Amount if One Partner Has Low Income

If your spouse has little or no income, the higher-earning partner may claim the spousal amount, which can reduce taxes by over $1,500.

Example:
If your spouse earned $5,000 and the spousal amount is $15,000, you get a credit on the difference:
$15,000 – $5,000 = $10,000 eligible amount.

This is one of the biggest tax benefits for couples.

3. Use Pension Income Splitting (if eligible)

If one partner receives eligible pension income, up to 50% of it can be transferred to the other partner’s tax return.
This helps to:

• Lower overall tax,

• Reduce clawbacks,

• Increase credits like age amount and GST/HST.

This strategy is especially powerful for retirees.

4. Contribute to a Spousal RRSP for Income Splitting

A high-income partner can contribute to a spousal RRSP, giving:

• An immediate tax deduction for the contributor,

• Lower taxable income for the couple in retirement,

• Long-term income splitting opportunities.

RRSPs are one of the strongest tools for long-term tax planning as a couple.

5. Pool Medical Expenses for a Bigger Credit

Medical expenses can be claimed by either partner.
The best strategy:
Put all medical receipts on the lower-income partner’s tax return.
Why?
Because the CRA’s threshold (3% of income) is easier to meet, which results in a larger credit.

6. Combine Charitable Donations

Instead of splitting donations between two returns, combine them on one spouse's return.

Donation credit rates increase significantly after $200, so pooling donations = more savings.

7. Maximize Child Benefits by Filing Correctly

Your Canada Child Benefit (CCB) depends on combined family income.
Accurate filing ensures:

• You receive the correct amount,

• No delays or denials,

• No CRA requests for proof later.

Late filing may cause CCB payments to stop entirely until returns are submitted.

8. Transfer Unused Credits Between Spouses

If one partner cannot use certain credits, they can often be transferred to the other, including:

• Tuition amounts

• Disability amount

• Age amount

• Pension income amount

• Spousal amount

• Canada caregiver amounts

This ensures no credits go to waste.

9. Share Deductions Strategically

Certain deductions can be claimed by either partner. For maximum savings:

• Claim childcare expenses on the lower-income spouse (required by CRA).

• Claim investment fees or accounting fees on the spouse with higher income.

• Claim work-from-home deductions correctly across both returns.

Smart distribution increases overall refund.

10. Keep Receipts Organized as a Couple

The CRA may request proof from either partner, and your benefits depend on both tax returns.
Keep documents such as:

• Medical receipts

• Tuition slips

• RRSP contributions

• Childcare receipts

• Home office claims

• Donation receipts

Accurate records = fewer delays and smoother refunds.