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Life Changes

If you're in a bad situation, don't worry it'll change.  If you're in a good situation, don't worry it'll change
.  ~John A. Simone, Sr.

It is rare that someone spends their life alone, so let`s concentrate on two events: you find your life partner get married or decide to live together, settle down and eventually start a family. So what is the government`s involvement in your personal life.


You are married if you went to the local city hall or civic centre or your house of worship, took out a marriage license and had the Clergyman or Justice of the Peace in that jurisdiction sign the marriage license.

You are married under common law if you have lived together for 12 consecutive months and have not been separated by relationship breakdown for a period greater than 90 days Or move in with the mother or father of your child, including an adoptive father / mother.

Once you are married, there are any number of tax benefits that will apply;
If your spouse does not work, you will be able to claim them as a dependant. That will trigger an additional tax credit equal to their basic personal amount. (Over $10,000)
If your spouse is disabled and cannot work, you will be able to claim their personal amount plus the disability tax credit (Over $7,600).

If you have a child you may be eligible for:
Canada Child Tax Benefits (CCTB), depending on your income. This is a monthly benefit made to eligible families to help with the expense of having children in the home. A good place to start for information on benefits you may qualify for is the brochure "Canada Child Benefits":
If the child is under 6 you qualify for the Universal Child Care Benefit (UCCB). A special benefit for children under the age of 6.

If your child qualifies under the disabled child provision, you may be eligible for benefits under the Child Disability Benefit (CDB). For information on the eligibility of this benefit, please see Form T2201.

Child Fitness Tax Credit
You may claim to a maximum of $500 per child under the age of 16 for the Child Fitness Credit for a prescribed program of physical activity.
You should apply for benefits as soon as a child is born or the child begins to live with you

Tax Tips

Many Canadians are looking abroad when adopting a child but it can be an expensive process. However, there is now some tax relief for adopting parents. You may claim a non-refundable tax credit for expenses relating to the adoption of a child up to a maximum of $10,445. The credit can only be claimed in the year the adoption is finalized but may include eligible expenses from previous years.

Turning 65 doesnít mean you canít contribute into an RRSP. The rules do allow you to contribute to your own RRSP up until the end of the year in which you turn 71, or to your spouse or common-law partner's RRSP. But remember, you will need available contribution room.

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