shawn99
May 13th, 2008, 10:02 PM
What are the difference in tax deduction in single vs married? Married couple that file their taxes together, is there a benefit to that?
brunes
May 13th, 2008, 10:37 PM
What are the difference in tax deduction in single vs married? Married couple that file their taxes together, is there a benefit to that?
There are some benefits. For example if one spouse makes significantly more than the other, then the one who makes less can put things like the medical deductions for both spouses on their return which will get more of a refund. You can also do things like open spousal RRSPs.
However, if two people with lower incomes get married, they will probably be worse off because their combined family income will be used to calculate their GST credit, which usually will leave them with a smaller overall credit (or none at all), compared to if they were two single people.