Separated individuals must file taxes independently and declare their separation date to the CRA
When filing taxes after separation in Canada, you need to inform the Canada Revenue Agency (CRA) of your change in marital status and the effective date of separation. This change can significantly impact your tax situation and available benefits.
Your separation affects several key tax considerations:
- Child benefits and credits may be recalculated based on individual income
- GST/HST credits will be based on your income alone
- Spousal support payments may be tax deductible for the payer and taxable for the recipient
- Property transfers between separated spouses may have tax implications
- Principal residence exemption claims need to be coordinated with your former spouse
It’s important to update your CRA account as soon as possible after separation to ensure you receive the correct benefits and credits based on your new status.