Line 423 – Family tax cut

Line 423 – Family tax cut

You may be able to claim this credit if you were married or living in a common-law partnership and you and your spouse or common-law partner:

• were not living separate or apart because of a breakdown in your relationship for a period of 90 days or more including December 31, 2015;

• were both residents of Canada on December 31, 2015 (or if either person died in the year, at the date of death); and

• both file a return for the year this credit is claimed.

You or your spouse or common-law partner must have also ordinarily lived throughout the year with your child who is under 18 years of age at the end of the year. Because of a joint custody arrangement, your child may have ordinarily lived with both you and your former spouse or common-law partner throughout the year.

You cannot claim this credit if:

• you are confined to a prison or similar institution for a period of 90 days or more during the year;

• your spouse or common-law partner is claiming the credit for the year;

• you or your spouse or common-law partner became bankrupt in the year; or

• you or your spouse or common-law partner has elected to split eligible pension income.

The credit is calculated based on the net reduction to your and your spouse's or common-law partner's combined federal taxes, as if an amount up to a maximum of $50,000 in taxable income was transferred from the individual with the higher taxable income to his or her spouse or common-law partner.

The maximum amount you can claim is $2,000.

To calculate your credit, complete Schedule 1-A, Family Tax Cut.