Spousal transfer of dividends

Program(s) affected: T1 Document created: February 28, 2004 Tax year(s): 2003 Document last modified: March 5 2004 Version(s): Problem status: Fixed

For Quebec tax purposes, why is DT Max transferring dividends from one spouse to the other?

This problem occurs in v7.01 and later.

Federally, dividends are transferable between spouses. This way, a taxpayer can report all the taxable dividends received by the family, but only if this will help increase the claim for the spousal or common-law partner amount (line 303 of Schedule 1).

For Quebec, this rule has changed, and dividends should no longer be transferred between spouses. Therefore, any amount of dividends received by a taxpayer should be claimed by that person specifically. For the time being, however, DT Max still applies the transfer of dividends to the spouse. As a workaround, use the keyword Optimize in the file of the person to whom the dividends were paid.

This problem is now fixed in Internet version 7.14.