Are There Tax Benefits to Tying The Knot Before Year End?

ï Check ìmarriedî on your tax return if you are legally married, whether you are a heterosexual or same sex couple.

ï Check ìcommon lawî if you have lived together with your partner for a continuous period of 12 months or if at December 31 you were parents of a natural or adoptive child together. Common law couples are treated like married couples for tax purposes.

ï Check ìseparatedî if you have been apart for a period of 90 days or more, or you have a written separation agreement.

ï Check ìdivorcedî if you have dissolved your marriage with a court order or decree.

ï Check ìwidowedî if you lost your spouse or common-law partner to death during the year.

These various conjugal relationships affect the filing of tax returns ­significantly, for example:

ï They can increase or decrease your monthly cash intake from Child Tax Benefits.

ï Maximize your opportunities to contribute to investments like RRSPs.

ï They can help you maximize the use of each family member's ­personal ìtax-free zonesî by transferring certain credits between spouses, or win on pension income splitting if you are a couple receiving benefits from one partner's company pension plan.

ï They can also restrict you to having just one tax exempt personal residence for your family unit.

In terms of the tax preparation process, this requires a family focus, rather than individual, for the best tax advantages for the family unit as a whole, and understand that the family that files tax returns together wins more in tax savings. Mastering your taxes as a family will result in bigger resources for wealth creation.