Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this3:02 pm
April 14, 2021
Offline
suburbs4life said
I have a joint account with my wife. Who gets the T5 and pays tax on it? Can it be the lower income earner?
I also have joint accounts at Tang and I am certain that the individual who creates the account has the income reported on their personal T5 statement. The second party who is invited to join the account (and make it into a joint account) does not have their name on the T5 statement.
I do not know if Tang allows the interest to be split and reported separately.
3:44 pm
September 15, 2017
Offline
HermanH said
suburbs4life said
I have a joint account with my wife. Who gets the T5 and pays tax on it? Can it be the lower income earner?I also have joint accounts at Tang and I am certain that the individual who creates the account has the income reported on their personal T5 statement. The second party who is invited to join the account (and make it into a joint account) does not have their name on the T5 statement.
I do not know if Tang allows the interest to be split and reported separately.
Normally, the T5 for joint accounts is issued with both names on it, using the S.I.N. of the primary person. For income tax reporting, the recipients are expected to split the total interest income in proportion to which they contributed to the deposits or GICs.
3:53 pm
April 14, 2021
Offline
I think that you are more precise and correct. It just turns out that I always report the entire sum. 
5:26 pm
November 8, 2018
Offline
suburbs4life said
Thanks for your thoughts Herman and Alexandre.I have a joint account with my wife. Who gets the T5 and pays tax on it? Can it be the lower income earner?
I have joint account with lower income earner. I like my tax life simple: I always claim 100% of interest income from that account on my tax return.
Formally speaking, you must split, but if I am ever audited I'll have a joy of having CRA refund some of my taxes paid. That thought alone is worth few dollars I might be overpaying in taxes.
6:56 pm
April 20, 2019
Offline
Thank you all. I was looking for a more tax efficient approach though.
7:49 pm
February 27, 2018
Offline
suburbs4life said
Thank you all. I was looking for a more tax efficient approach though.
You could do what our honest politicians do... move your money off shore.
6:13 am
September 11, 2013
Offline
When you open a joint account make the person who you want to be reporting the income as the primary, then T5 SIN matches who's reporting the income and that makes CRA computer happy (despite what the Act says about reporting the income based on funding the account). And keeping The Machine happy trumps all these days!
7:12 am
October 21, 2013
Online
Bill said
When you open a joint account make the person who you want to be reporting the income as the primary, then T5 SIN matches who's reporting the income and that makes CRA computer happy (despite what the Act says about reporting the income based on funding the account). And keeping The Machine happy trumps all these days!
That's good advice.
If your account isn't set up properly, maybe open a new one.
10:23 am
April 14, 2021
Offline
Bill said
When you open a joint account make the person who you want to be reporting the income as the primary, then T5 SIN matches who's reporting the income and that makes CRA computer happy (despite what the Act says about reporting the income based on funding the account). And keeping The Machine happy trumps all these days!
Very true. Historically, we split reporting the T5 interest, but CRA had fits and caused us a great deal of grief explaining it to them. It just worked out more smoothly to have me declared the primary and report it all on my return.
5:19 pm
December 7, 2011
Offline
I like simplicity and for that very reason only the primary always report it all. Over 40 years and CRA looks quite happy so far, nobody ever asked us any questions.
5:23 pm
April 20, 2019
Offline
Kidd said
You could do what our honest politicians do... move your money off shore.
I wish I could laugh more at this but it’s so very true which is depressing.
Thanks for thoughts everyone. I suspect it was opened through me which is a Tax problem lol. However, now I have been enlightened.
6:51 pm
December 12, 2021
Offline
I've always use the joint account (for dico\cdic) myself as primary and always reported the income on my tax return. I was not offered the last Tang 2% so now i am using a joint account with a family member who is the primary. i will be reporting the income hopefully will not create a problem with CRA, or will it? thanks
Please write your comments in the forum.