If you have a spouse or a common-law partner, it’s to your advantage to prepare your tax returns together (coupled returns). By doing so, you can maximize your deductions and easily transfer certain amounts to lower your tax payable as a couple. Having said that, it’s important to know that certain amounts can only be claimed by the lower income spouse while other amounts can be pooled together and claimed by the higher income spouse for maximum benefit.

Universal child care benefit (UCCB)

As a primary caregiver of your child(ren), if you received UCCB payments during the year, the lower income spouse will need to report these payments on their return.

Note: As of July 1, 2016, the UCCB has been replaced with the tax-free Canada child benefit (CCB). Your CCB amounts don’t have be reported on your return.

Childcare expenses

Generally, childcare expenses must be claimed by the lower income spouse even if that means it’s claimed by the parent with no income at all. The higher income spouse can claim child care expenses only if one of the following situations applied to the lower income spouse:

• The person was enrolled in a part-time or a full-time educational program
• The person was not capable of caring for children because of a mental or physical infirmity
• That person was confined for a period of at least two weeks to a bed or wheelchair, or as a patient in a hospital, or other similar institution (a certification from the attending physician will be required)
• The person wasn’t capable of caring for children because of a mental or physical infirmity, and this situation is likely to continue for an indefinite period (a certification from the attending physician will be required)
• The person was confined to a prison or similar institution for a period of at least two weeks or
• You and your spouse were, due to a breakdown in your relationship, living separate and apart at the end of 2016 and for a period of at least 90 days beginning in 2016, but you reconciled before March 1, 2017

Children’s fitness and arts amounts

You can combine the amounts you and your spouse paid for your child(ren)’s fitness or arts amounts and claim them on the higher income return for maximum benefit.

Note: Both these amounts are reduced by 50% for 2016 and will be eliminated 2017 onwards. 

Public transit amount

If you’re the higher income spouse, it’s to your advantage to pool together the cost of transit passes you paid for yourself, your spouse, and your children under the age of 19. 

Medical expenses

It’s usually more beneficial for the lower income spouse to claim medical expenses paid for the family because the amount claimable is based on the lesser of $2,208 or 3% of your net income for the year.

For example, let’s say in 2016, your net income was $50,000 while that of your spouse was $60,000. During this year, you paid $2,000 in medical expenses for yourself, your spouse, and your dependant children. The table below shows you a comparison of what you would be able to claim versus your spouse.

Charitable donations

If you and your spouse made donations during the year, you can combine these donations and claim them on the higher income spouse’s tax return to lower their tax liability. For donations up to $200, you’ll receive a 15% tax credit; for donations over $200, the tax credit   increases to 29%..

Example: If you donated $200 in 2016, your donations tax credit will be $30. If, however, you donated $500 in 2016, you’ll get a tax credit of $117 -- $30 for the first $200 and $87 for the second $300.

Amounts that can be claimed by either spouse

If you qualify for any of the amounts below but don’t need them to lower your tax payable, you might be able to transfer the amount to your spouse:

• Family caregiver amount
• Disability amount
• Tuition amount
• Tuition transfer from a child