Claiming Spousal Amount – Are You Eligible?

Claiming Spousal Amount – Are You Eligible?

The spousal amount is one of the most valuable non-refundable tax credits in Canada. If your spouse or common-law partner has a low income, you may be able to claim this credit and reduce your taxes owing—sometimes by over $1,500.

But not everyone qualifies. Here’s a clear guide on how eligibility works and how to claim it correctly.

What Is the Spousal Amount?

The spousal amount is a federal tax credit that helps support households where one partner earns significantly less. It’s similar to the “amount for dependants,” but specifically for your spouse or common-law partner.

For 2024/2025, the maximum spousal amount is roughly $15,000 (indexed annually).
You don’t get this amount as cash—you get a tax reduction based on the federal credit rate (15%).

Who Is Eligible?

You may claim the spousal amount if:

1. You supported your spouse/common-law partner financially

This usually means you earned more, and your spouse depended on your income.

2. Your spouse’s net income is below the CRA threshold

Your partner must have a low income, usually below the maximum spousal amount for the year.

Example:
If the max spousal amount is $15,000 and your spouse earned $5,000,
then your claim = $15,000 – $5,000 = $10,000.

You cannot claim the full amount if your spouse earns above the limit.

3. You were married or living common-law on December 31

If the relationship ended before year-end, you cannot claim the spousal amount.

4. Only ONE partner claims it

You cannot both claim each other.
Only the higher-income spouse claims the credit.

How Much Can You Claim?

The formula is simple:

Eligible Spousal Amount = Maximum spousal amount – Your spouse’s net income

Then, the federal tax credit rate applies (15%), lowering your tax bill.

Example:
Spouse income: $8,000
Maximum spousal amount: $15,000
Claim: $7,000
Tax reduction: $7,000 × 15% = $1,050 less tax owing.

What Counts as “Net Income”?

Your spouse’s net income includes:

• Employment income

• Self-employment income

• EI benefits

• Pension income

• Investment income

• Worldwide income (not just Canadian)

It does not include:

• GST/HST credit

• CCB payments

• Disability benefits for children

• Most provincial child benefits

Common Mistakes to Avoid

❌ Thinking both spouses can claim the amount
Only one can.

❌ Using gross income instead of net income
CRA uses line 23600 (net income) when calculating eligibility.

❌ Not updating marital status
If you don’t report your marital status to the CRA, you may miss the credit entirely.

❌ Forgetting to report worldwide income
Immigrant families must report the spouse’s foreign income on Form RC66.

What if Your Spouse Had Zero Income?

If your spouse earned nothing for the year, you can typically claim the full spousal amount.
This often results in the highest possible tax reduction.

Spousal Amount vs. Eligible Dependant Amount

You cannot claim both.
Use the spousal amount if:

• You are married or living common-law.

Use the eligible dependant amount if:

• You are single, separated, divorced, or widowed and support a child.

Why Claiming This Credit Matters

Claiming the spousal amount correctly can:

• Reduce your federal tax bill significantly

• Increase certain benefits (like GST/HST credit) by lowering net family income

• Ensure your household benefits from tax credits designed for low-income partners

Final Takeaway

The spousal amount is a powerful credit—but only if you’re eligible and calculate it correctly. Understanding your partner’s net income and your marital status on December 31 is the key to a proper claim.

If you want help determining your eligibility or calculating the exact amount, Tiki Tax can review your situation and make sure you claim every credit you deserve.