The past few weeks have been full of new and exciting (yes, exciting!) tax credits for families.
Several weeks ago, the government announced two major changes to the Child Fitness Tax Credit: the maximum expense claim has doubled from $500 to $1,000 for the 2014 tax year. Even better news; this credit will be refundable starting in the 2015 year, which means you will get money back even if you have no taxes payable. To find out if your child’s fitness activities are eligible for these credits, visit: http://www.cra-arc.gc.ca/fitness.
On October 30, 2014, the Prime Minister and several MPs announced new measures to help ease the tax burden on families. The biggest announcement comes in the form of the new Family Tax Cut, which will allow couples with children under the age of 18 to transfer up to $50,000 in taxable income to a spouse in a lower tax bracket. This will be in effect for the 2014 tax year, which means come April, families will be able to income split and reduce their overall tax burden.
Other big announcements include expansion of the Universal Child Care Benefit to include a new benefit for children age 6 – 17 at $720 per year per child per year. As well, the yearly benefit for children under six has increased from $1,200 to $1,920. Both of these measures will be in effect for the 2015 tax year. For more information, see the official release from the Prime Minister’s Office: http://pm.gc.ca/eng/news/2014/10/30/pm-announces-tax-cuts-increased-benefits-families. CRA has also updated its website with the following frequently asked question pages:
– Family Tax Cut: http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa10-eng.html
– Enhanced Universal Child Care Benefit: http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa11-eng.html
Your accountants at RHN are up-to-date with all of the latest tax developments. We will help you ensure that you have all of the information you need to claim these credits and more at tax time. Come visit us in the spring and count on us to help you get the benefits and credits you deserve.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your particular circumstances.