By Manish Puri,
Special to The Post
Being a parent is costly. In 2014 the federal government introduced and amended several tax measures for families to help lighten the load. Here’s what parents should know about these changes – both for your 2014 taxes you’re now filing, and for 2015.
The new Family Tax Cut provides a non-refundable credit of up to $2,000 to eligible couples with children under 18. It’s based on the net decrease in federal tax that would result if up to $50,000 of one person’s taxable income – who is in a higher tax bracket – is transferred to their spouse or common-law partner who is in a lower tax bracket.
To encourage kids to get active, starting in the 2014 tax year, the Children’s Fitness Tax Credit doubled to $1,000 per child. Also, children with disabilities may qualify for an additional $500 credit. In 2015, this credit also became refundable, which means if the deductions reduce your tax owing to zero you’ll get anything left over as a tax refund the following year.
Starting in 2014, the Universal Child Care Benefit (UCCB) replaced the Child Tax Credit, but it has also been enhanced. Until January 2015, the benefit provided up to $1,200 a year for children under the age of six; this has increased now to up to $1,920, and care for kids between six to 17 years old can qualify you for up to $720. The benefits are paid monthly starting in July 2015 and that July payment will include the first six months of the year.
The Child Care Expenses Deduction also increased by $1,000 starting in the 2015 tax year.
Using a reliable tax software, like TurboTax, makes it easy to take advantage of new credits and deductions, so you can get back to spending time with your kids, instead of figuring out tax laws.
About Manish Puri:
Manish is head of consumer marketing for Intuit Canada and is deeply passionate about helping Canadians do their own taxes. Manish has authored seven books on subjects as diverse as Data Interpretation, Test of Reasoning, Business General Knowledge, Verbal Reasoning, Mathematics and Economics.