Filed common law - benefits and credits now OWING - partner in processing limbo
For context: I am DTC approved due to a chronic disability and live with my spouse. The kids are all under my name for child benefits.
Our accountant filed us as common law for 2025 online (normally processed quickly). Here’s what happened afterward:
- My Express NOA processed normally. My account showed a small refund and all benefits/credits looked normal.
- My spouse’s return then went into manual review with no clear completion date.
- Due to processing limbo, her CRA account still showed “single,” so we later updated the marital status manually to match both our returns.
- After her return entered manual review, ALL of my 2025 benefits/credits suddenly changed to “Benefits and Credits Owing” retroactively back to February 2025 (when common-law status began). The amount owing is extremely large and alarming.
I understand CRA clawbacks can happen when people file retroactively as common law and the second partner has significant income that pushes household income into a higher bracket.
However, that is NOT our situation.
My spouse is a stay-at-home mom with virtually no income. Whether CRA calculates using my “single income” or our “family income,” the numbers are nearly identical and should not materially affect benefits/credits.
I even ran the calculations myself using family net income vs single income and there should be little to no difference.
Accountant said not to worry and he is looking into it.
However, this has caused major stress because I rely on disability and child benefits month-to-month and cannot simply go get full-time employment due to my condition.
So my questions are:
Is it normal for CRA to temporarily show benefits/credits as “owing” while the spouse/common-law partner’s return is stuck in manual review?
Does CRA sometimes temporarily reverse/recalculate all credits until the second partner’s NOA is finalized?
How long do manual reviews after marital status changes usually take before benefits are recalculated properly using family net income?
Her return is extremely simple - no DTC claim, no complicated deductions, virtually no income.
At this point it looks like CRA automatically flagged/reversed everything while her return is stuck awaiting manual processing.
Any insight from people who know the ins and outs or experienced something similar would be appreciated.
Thanks.