Preparing the return of a newly separated or divorced taxpayer

If your client separated or divorced during the last tax year, his/her new civil status must be taken into account when preparing the next tax return.

• Inactivating a spouse

  In the year of separation, one of the spouses must be inactivated. The spouse whose file is inactivated cannot be the family head as this would prevent tax calculations for the entire family. If the family head is inactivated, you must access the spouse's file and change their Relation entry to Family head. This will swap the family head and spouse in this family.

  To make the spouse inactive, use the keyword Inactive in this person's file and make sure that the option Separated is selected.

  If you wish to prepare the return of the inactive spouse, point to their file in the client list, select the option Clone family members from the Tools menu, and in the dialogue box that appears, verify that the options Current individual only and Add to a new family are selected. Then check the option Make cloned family member inactive in original family. Click OK and DT Max will create a new family with the clone as the family head.

• Changing the civil status

  In the client's file, use the keyword Status and make the necessary change.

  Enter the information pertaining to the change of civil status by using the keyword StatusChange in the file of each ex-spouse, and selecting the appropriate option.

• Other permanent data

  Use the keyword Alone in the file of an ex-spouse who now lives alone, further to the breakup. Note that in the year of the breakup, the amount for person living alone cannot be claimed because the divorced or separated taxpayer had a spouse during part of that year.

  Enter the full address of the new family head with the keyword Street . If this is a change of address, indicate it by selecting Yes in the keyword Address-New .

• Data pertaining to the ex-spouses

  Use the keyword RelatedParty in the file of each ex-spouse and select the appropriate option from the choices available.

  Next, enter the data pertaining to the ex-spouse:

  • The birthdate and the SIN are required in the year of the breakup (especially for efile purposes).

  • The net income prior to the breakup, with the keyword NI-BefChange . If you are unable to establish this amount precisely, provide the best estimate possible. This information will be used, among other things, for the calculation of the spousal amount.

  • The amount of alimony paid or received, with the keyword ALIMONY-PAID or ALIMONY-REC.

  • Using the keyword Intervention , indicate whether the Minister of Revenue of Québec automatically collects alimony from the taxpayer and pays the recipient.

  • Indicate whether the spouse transferred amounts from Schedule 2 with the keyword Spouse-Transfer .

• If there are children ...

  Create new files for the children, now linked to the new family head, so that this person may claim credits available as a result of the breakup. To do so, use the cloning feature. There will be a duplication of the children's files.

  The following year, don't forget to inactivate the children's files that are linked to the parent who no longer supports them.

  Use the keyword Transfer-OV in the children's files in order to control the optimization made by DT Max with respect to certain deductions pertaining to the children.

• Optimization

  The keyword Optimize will allow you to control the optimization made by DT Max with respect to a variety of credits and transfers between the ex-spouses. You will be able to share certain amounts between the two individuals.