u/SquirrellyinBC

▲ 0 r/cantax

Filing common law vs. single increases taxes owed?

If I fill in my return as a single person, I owe around $900. I did not claim any dependents, or a partner, or tax credits when preparing this. If he does his the same way, he gets back around $3k.

Then I change it to say I'm common law and enter my partners income where prompted (about the same income amount as mine), now I owe an additional $400. Still no tax credits for either of us. When he does it on his, his refund is reduced by half!

When googling this, I saw a blurb from wealthsimple that says the "family income" should only affect what tax credits I'm eligible for, but not change the individuals tax rate. So why did the amount I owe go up and his refund went down?

It seems we're both being taxed on our "family income" as opposed to our individual incomes?

Am I missing a box I should check or something?

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u/SquirrellyinBC — 8 hours ago