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Print this pageForward this document  Net income of spouse in RELATEDPARTY

In what cases does DT Max use the spouse's net income as entered in the RELATEDPARTY group?

When the spouse is not processed in the family unit, you must enter their personal data with the keyword RelatedParty and the option Spouse not processed.

The spouse's income information helps to determine if the taxpayer being processed is entitled to the spousal amount. The amount of net income of the spouse (federal) and of family income (Quebec line 220) will be reported on one of the lines used in the calculation of the spousal amount.

The spouse's net income will also be reported in the GST credit calculation, and the amount of family income will be in the calculation of the family income for purposes of the credits calculated on schedule B.

The spouse's net income cannot be used to determine whether or not the taxpayer being processed is entitled to the amount for childcare expenses since net income is not necessarily equal to earned income. DT Max will grant childcare expenses to the taxpayer being processed if that taxpayer has earned income, regardless of the level of net income of the spouse as entered in the RelatedParty group. If you know that the taxpayer being processed is not entitled to the amount for childcare expenses because the spouse is already claiming it, do not enter the amount of childcare expenses in the children's files and DT Max will not grant it.

September 13, 2002