Preparing a coupled (spousal) return

A spousal or coupled return is when you prepare two taxpayers' returns at the same time, in the same file. Although both returns are created and stored in a single data file, they are actually still separate returns, each with its own individual forms and schedules. When you submit the returns to the CRA (either electronically or by mail), you submit each return independently of the other.

Important:

If you are married or living common-law and are not preparing your spouse or common-law partner's return at this time, you must provide your spouse's net income when asked. The software uses this amount wherever it is required to calculate federal and provincial tax credits.

Although you can change your marital status, you cannot change your filing selection (e.g., from a coupled to an individual return).

Why should I prepare a coupled return?

It saves data entry effort, with shared information being transferred between taxpayers (for example, address, dependant's personal information, spouse's net income, joint investment information, etc.). Then the software maximizes credits available for both of you (including education, age, medical, charitable, child care, pension amounts, dependant credits, CCB, GST/HST credit, etc.) and determines if there are unused credits on either return. These are transferred from one of you to the other to achieve the best net benefit to you both.

Also, when you prepare spouse's returns separately, there is a danger of claiming the same credit or expense on both returns. This can result in the CRA adjusting one or both returns and assessing a penalty based on the adjustment.

Who can prepare a coupled or spousal return?

To prepare a coupled return, taxpayers must:

have the same marital status (either married or living common-law);
be married to each other; and
live in the same province.

You cannot prepare a spousal return with a spouse from whom you are separated, divorced, or widowed. If this is your situation, see Uncouple a previously coupled return.

What does it mean to prepare my spouse's return separately

If you are married or living common-law and do not prepare your spouse or common-law partner's return at the same time as your own, you must provide your spouse's net income when asked during the preparation of your return. The software uses this amount wherever it is required to calculate federal and provincial tax credits.

Important: If your spouse has income and you do not enter it, TurboTax won't be able to calculate your credits correctly, and could show you as having less tax payable than is actually the case. When your spouse files his or her return, CRA will correct your return, and you will owe the difference (plus interest) to CRA.

Why would I prepare my return and my spouse's return individually?

In rare cases, you may want to create separate returns. For example:

your spouse lived in a different province or country on December 31.
one spouse is expecting a refund and is ready to file much earlier than the other.
Important: In this case, you must enter an estimate of your spouse or partner's net income. If your spouse has income and you do not enter it, TurboTax won't be able to calculate your credits correctly, and could show you as having less tax payable than is actually the case. When your spouse files his or her return, CRA will correct your return, and you will owe the difference (plus interest) to CRA.
one spouse died in the year. In this case, you must complete separate returns.
you maintain separate finances and want to keep your returns private.

Can I merge two existing returns into one coupled return?

No. Once you have selected to prepare your returns separately, you cannot merge them. However, if you haven't reached the payment stage, you can use navigate back to Return Manager to create a new coupled return.

What if my spouse died during the year?

You cannot prepare a coupled return if your spouse died during the tax year - you must prepare separate returns for each of you. See Deceased returns information about completing a return for a deceased person.