EQ Bank Savings Plus Account

My Wife is Worth How Much 2007

in Child Tax Credit, Single Income

I have talked about how single income families do seem to get the dirty end of the stick, and this is another in a series about that topic, from 2007.

The past couple of years, I have used my Quicktax program as a financial forecasting tool (as well as an excellent, if somewhat expensive, tax preparation program). Every year I wonder what is the difference if both my wife and I worked and earned the same Gross Family Income, as compared to our current situation where I am the sole bread winner (by choice)? (a note for American readers, there is no concept of income splitting in Canada, until you retire, and even then…)

I have pointed out on this web site (and to my members of Provincial and Federal Government) that the Canadian Tax code is slanted toward dual income families and actually penalizes the “traditional” single income family.

Before I get posts about how I am against women in the workplace, or the same kind of arguments, I am the father of 3 daughters, and I am not against women in the workplace (I prefer female bosses, if you were asking my opinion), what I am saying is that single income families do not get the advantages that dual income families have.

Some of these advantages are:

  • Writing off day care costs. Now yes, this is legitimate costs of going to work, so I am not saying this is bad, however, they get to write off summer camps as well, however, I do not because my wife stays at home.
  • The “equivalent to married” non-refundable tax credit I get for my wife adds up to not very much (I’ll have that as part of my calculations in later postings).
  • A benefit of having two medical programs (which not all dual income families have) is that a lot of expensive medical procedures typically only covered as 1/2 on most medical plans, end up being covered completely by both insurance companies (e.g. Braces, Crown replacements, etc.,)
  • What happens with CPP? Both in a dual income family would get CPP payments, but does my wife get one, in a single income family? Don’t know, need to go find that one out.

There are other tax advantages as well. Now, a single income family like mine has other advantages as well (I am not complaining about the single income concept, I think it is good), so let’s not get into discussions like that I am looking solely at the Canadian Tax system. My family gets the “Beer and Popcorn” money and doesn’t get it clawed back!

Coming next, what do the numbers say?

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{ 6 comments }

  • gene May 25, 2007, 10:52 PM

    Slightly off topic: you should check out Studio Tax instead of Quick Tax. I used it this year for the first time, and it worked great. Not sure how it would deal with your scenario calculations, but it has the advantage of being free. Donations are accepted, but I haven’t sent them any money.

    Reply
  • Anonymous May 25, 2007, 10:02 AM

    We are also a single-income couple, although in our case it is the wife who is the breadwinner. (This is because of a decision to go back to school.) Income splitting would be great!

    Reply
  • Sara May 25, 2007, 6:21 AM

    we’re finally here advocating for income splitting and equality in childcare but we need you to join us. As you know we are literally fighting the unions.

    http://www.careofthechild.com

    Reply
  • Julia May 25, 2007, 5:24 AM

    I have been complaining about this for years. I am a single woman with no dependents and no spouse, and it’s annoying that I cannot use any of the tax breaks that either the provincial or federal governments institute year after year. It’s a frustrating experience, because I know there is a large segment of the population like me (or like us, single income families) that cannot take advantage of these tax breaks/credits. If only we could all band together and do something about it! 🙂

    Reply
  • Big Cajun Man May 25, 2007, 6:24 AM

    Interesting… -c8j

    Reply
  • Big Cajun Man May 25, 2007, 5:42 AM

    Now is the time to act, remember we have a MINORITY government, so they are a little more likely to listen. Send e-mails to your MP and MPP, and if you want point them to this web site, and anywhere else like this.

    Complain!!! -C8j

    Reply

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