The spousal dividend transfer allows the higher-income partner to report all eligible dividends received by the lower-income partner from taxable Canadian corporations. This can increase the claim on line 30300.
Before the spousal dividend transfer can be applied, ensure you've completed these steps:
-
Link your Tax profiles:
- This allows the software to consider both returns for optimization
- Enter all dividend slips:
Once these prerequisites are met, here's how Wealthsimple Tax handles the transfer:
- Report dividends:
- Enter your dividends on your return
- Enter your partner's dividends on their return
-
Automatic optimization:
- Click Review & Optimize
- Wealthsimple Tax determines if the transfer benefits you
- If beneficial, the transfer is applied automatically
- Verify the transfer:
- Check the Optimizations > Credits and deductions table for the spousal dividend transfer row
- In the Summary > Amounts section, you'll see higher amounts on line 12000
- Your partner's line 12000 will show zero
Troubleshooting:
- Transfer not applied: Rerun the optimizer if you've made changes to your return
- Transfer applied but not visible: Refresh the page, especially after changing pension split amounts
Important notes:
- The transfer aims to maximize tax benefits for both partners
- Learn more about eligible dividends and the dividend tax credit
Remember:
- Keep all dividend slips and investment records
- The transfer doesn't change the actual ownership of investments
If you have questions about the spousal dividend transfer or its impact on your specific tax situation, consider consulting with a tax expert. For assistance using this feature in Wealthsimple Tax, please contact Wealthsimple support.
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