If you and your spouse decide to prepare your returns separately, you’ll need to manually enter some of the information from your spouse’s return on your Schedule 2. This will help determine which federal and provincial amounts you can transfer from his or her return to claim on yours.
Some of the amounts you might be eligible to claim include:
- Age amount
- Family caregiver amount for children under 18
- Pension income amount
- Disability amount
- Tuition, education, and textbooks amount
Note: The federal education and textbooks amount is being eliminated as of January 1st, 2017.
Remember, if you’re eligible to claim the federal amount, you’re also entitled to claim a corresponding provincial tax credit, which might vary in amount depending on which province or territory you live in:
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Prince Edward Island
When completing Schedule 2, make sure that you only enter the unused portion of your spouse’s federal amounts. To help you find the amounts you need on your spouse’s return, H&R Block’s tax software will show the amount’s respective line number:
If your spouse isn’t filing a return, simply enter the amounts they would’ve entered on their own return. You can get these amounts from their information slips.
Note: If you and your spouse are preparing your returns together, you won’t need to complete Schedule 2; H&R Block’s tax software will automatically do it for you.
Remember, be careful when filling out Schedule 2; if the information you enter is inaccurate, it could mean delays, interest charges, or penalties from the Canada Revenue Agency (CRA). If you’re eligible for the provincial credits and tax reductions that are available for lower income taxpayers, make sure you enter your spouse’s exact net income. If you and your spouse are higher income taxpayers, an estimate is fine.
Once you’ve entered the amounts on Schedule 2, H&R Block’s tax software will automatically determine which federal and provincial amounts can be transferred and claimed.
Where can I learn more?