Should You Claim a Common Law Partner on Your Tax Return?

Common-law taxes in Canada: Why you should claim your partner

Alison, the short answer is that your boyfriend should bring his tax filings up to date, but claiming him as your common-law partner on your return does not automatically create problems for you — if you file accurately. Whether this helps or hurts depends on a few factors: his past employment or self-employment status, any taxes owed for previous years, and how reporting a change in marital status affects benefits and credits tied to family income.

If your boyfriend earned income in 2020 or earlier and didn’t file, he may be entitled to refunds or might instead owe taxes. Employees sometimes have excess tax withheld and can receive refunds. Self-employed people who did not remit source deductions are more likely to owe tax. If he has unfiled years, he should consider the Canada Revenue Agency’s Voluntary Disclosures Program (VDP), which allows taxpayers to correct omissions or errors voluntarily. When successfully used, the VDP can remove or reduce penalties and some interest, although any outstanding tax owing still needs to be paid.

The CRA considers you common-law partners if you live together in a conjugal relationship for at least 12 consecutive months. You should file as common-law in the year you reach that 12-month mark and tell the CRA about the change in status by the end of the month following the month the status changed. Because your boyfriend’s financial situation affects household finances, getting both of your tax affairs in order is important for accurate tax reporting and access to the right government benefits.

Common-law tax benefits

Filing as common-law partners can affect your tax situation in several ways. Key impacts include:

• Eligibility for some government benefits is determined by family income rather than individual income, which can increase or reduce payments depending on combined earnings.
• Medical expenses and charitable donations can be combined on one return, often increasing the total deductible amount and producing greater tax savings than if both partners claimed separately.
• If one partner has low or no income, the other may claim the spouse or common-law partner amount — a non-refundable tax credit that reduces taxable income.
• Partners can contribute to a spousal Registered Retirement Savings Plan (RRSP) to shift retirement savings and potentially reduce the higher earner’s tax burden.
• Certain eligible pension income can be split between spouses for tax purposes, which can reduce joint tax liability.

In your situation, because your boyfriend’s income was low in 2020 and he has had no reported income since then, you may be eligible to claim the spouse or common-law partner amount. For 2024, the federal credit can provide up to $2,356 in tax relief, with additional provincial credits that range depending on your province of residence. However, adding his income to family calculations can change the amounts you receive from income-tested benefits such as the Canada Child Benefit, GST/HST credit, Canada Carbon Rebate, or the Guaranteed Income Supplement, so you should expect adjustments in those programs if your filing status changes.

Why you should get caught up on taxes

It’s better for your boyfriend to address unfiled returns voluntarily than to wait for a CRA audit or assessment. Voluntarily filing past-due returns can reduce or eliminate late-filing penalties and, in some cases, reduce interest. The VDP is designed for situations in which taxpayers come forward before the CRA initiates an investigation.

Because you’ll be certifying that the information on your tax return is complete and accurate, you must file honestly about your relationship status and household circumstances. Being current on both of your tax obligations protects you financially and ensures you’re receiving the correct benefit amounts and credits. If you’re providing financial support, that fact can affect both your taxes and the calculation of government benefits, so transparency is important.

Practical next steps:

• Encourage your boyfriend to gather records for unfiled years — T4s, bank statements, business income records, and receipts for deductions or credits.
• Consider voluntary disclosure through the CRA’s program to reduce penalties and interest, if applicable.
• File your return using the correct marital status for the relevant tax year and notify the CRA promptly when your common-law status begins.
• Review any changes to benefits and credits that depend on household income, and update benefit providers if required.
• If you’re unsure, speak with a tax professional who can assess both of your situations and advise on the best course of action.

Read more about filing taxes:

• Can you file multiple years of income taxes together in Canada?
• How to fill out a personal income tax return for 2023
• How to file your taxes online in Canada
• Tax implications of making transfers between registered accounts