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GST/HST re-evaluation after reporting change in marital status

Ver94

Hero Member
Aug 17, 2019
225
112
A little back story: We started living together in Oct 2017, officially became common law (for tax and immigration purposes) on Oct 2018. We were told by CRA that the first year doesn't really "count" as common law, so we should file taxes together in 2020 (for 2019). That being said, a couple of days ago our GSTs were re-evaluated and I've been asked to return my entire 2018 entitlement (roughly $800) , whereas my partner got asked to return a piece of hers' ($100) .

If anyone knows why this is, that would be extremely helpful. I can't seem to find anything logical online.

Also, her family income for 2018 has been updated to the sum of both our incomes for that year, which doesn't make sense because we weren't common law then?
 

canuck78

VIP Member
Jun 18, 2017
31,315
6,910
A little back story: We started living together in Oct 2017, officially became common law (for tax and immigration purposes) on Oct 2018. We were told by CRA that the first year doesn't really "count" as common law, so we should file taxes together in 2020 (for 2019). That being said, a couple of days ago our GSTs were re-evaluated and I've been asked to return my entire 2018 entitlement (roughly $800) , whereas my partner got asked to return a piece of hers' ($100) .

If anyone knows why this is, that would be extremely helpful. I can't seem to find anything logical online.

Also, her family income for 2018 has been updated to the sum of both our incomes for that year, which doesn't make sense because we weren't common law then?
Think there was a misunderstanding. Maybe they meant the first year you lived together doesn’t count not the first year as common law. Unfortunately cra phone line often gives out incorrect advice. You should have updated your status in October 2018 and filedas common law in 2019?.
 

Ver94

Hero Member
Aug 17, 2019
225
112
Think there was a misunderstanding. Maybe they meant the first year you lived together doesn’t count not the first year as common law. Unfortunately cra phone line often gives out incorrect advice. You should have updated your status in October 2018 and filedas common law in 2019?.
Unfortunately, we thought we could rely on the words of their representatives. We didn't realize we were considered common law at that point, after we filed in 2019 and called to update our marital status the representative told us not to bother until 2020. Technically our first year of common law was 2019 , before that we were just living together right?

Would you know how it all factors into gst fiasco?
 

canuck_in_uk

VIP Member
May 4, 2012
31,613
7,090
Visa Office......
London
App. Filed.......
06/12
Unfortunately, we thought we could rely on the words of their representatives. We didn't realize we were considered common law at that point, after we filed in 2019 and called to update our marital status the representative told us not to bother until 2020. Technically our first year of common law was 2019 , before that we were just living together right?

Would you know how it all factors into gst fiasco?
GST/HST credit is based on family income and only one person in the family can receive the credit. You both received it after becoming common-law, so one person had to pay it all back and the other had the credit adjusted to account for overall family income.

You are required to update marital status changes with CRA within 30 days of the change in order to prevent such situations with benefit/credit over payment and having to repay. As you became common-law Oct 2018, you were required to change your status by Nov 2018. Your 2018 tax return should have shown your marital status as common-law.

If you didn't file as common-law or declare the correct common-law date, you need to update that with CRA ASAP.
 

Ver94

Hero Member
Aug 17, 2019
225
112
GST/HST credit is based on family income and only one person in the family can receive the credit. You both received it after becoming common-law, so one person had to pay it all back and the other had the credit adjusted to account for overall family income.

You are required to update marital status changes with CRA within 30 days of the change in order to prevent such situations with benefit/credit over payment and having to repay. As you became common-law Oct 2018, you were required to change your status by Nov 2018. Your 2018 tax return should have shown your marital status as common-law.

If you didn't file as common-law or declare the correct common-law date, you need to update that with CRA ASAP.
Thanks for the info! Much appreaciated!