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New Tax Credits Could Mean Family Savings for Canadians

New Tax Credits Could Mean Family Savings for Canadians

April showers bring May flowers – and the tax deadline. Believe it or not, the deadline for filing your 2014 tax return is less than 90 days away. If this deadline is already weighing you down, you’re not alone. Let’s face it, not many Canadians get excited about tax season. But there is good news, Canadians!

This year there are new tax credits for Canadian families that may help put a few dollars back into your wallet. Caroline Battista, senior tax analyst with H&R Block Canada, provides insight into these new credits and who can benefit from them.

The New Family Tax Cut – designed as a limited form of income splitting, it allows qualifying families to save when one spouse earns considerably more than the other. Families with children under the age of 18 will be able to claim a non-refundable tax credit equal to the amount of tax savings that would be realized by transferring up to $50,000 worth of income from the higher-earning to the lower-earning spouse or common-law partner. “This will generally be beneficial if one spouse is in a higher tax bracket than the other or if the lower-income spouse has non-refundable tax credits that are not being fully utilized,” explains Battista. The tax credit will be capped at a maximum of $2,000.

Similar to the rules for claiming the child amount, a family must have a child under the age of 18 at the end of the year who must normally reside with them throughout the year. An exception to this rule would be if the parents of a child remarry or enter into new common-law partnerships during the year, or if a child is born, adopted or passes away during the year.

Increase to the Children’s Fitness Tax Credit – If you have children involved in after school sports or athletic programs, the government increased the Children’s Fitness Tax Credit to $1,000 and made it retroactive for 2014. Parents should claim the receipts in the year they paid – not the year the activity takes place.

Universal Child Care Benefit – Though the Universal Child Care Benefit doesn’t show up in your tax refund, parents with children under 18 will start to see an increased benefit in July 2015. For children under six, the monthly amount will be $160 (up from $100) and for children between six and 18, it will be $60 a month. The increase for January to June will be paid in a lump sum in July 2015. And then parents can expect the increased amounts to arrive monthly after that. If you haven’t already registered for child benefits, use Form RC66.

Canada tax return 2015 H&R Block

Each tax credit you can utilize can reduce your tax bill, and they can add up. Battista encourages you to know what credits you are eligible for and have all of the necessary forms and paperwork in order so you don’t miss a thing.

Canada tax 2015 H&R Block

If the idea of doing your own tax return sounds like a daunting task, visit a local H&R Block office where a professional can assist you in every step.

 

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WIN IT: One Canadian will get a certificate for one regular return (T4) that can be used at any H&R Block retail office location in Canada, ARV $100.

To ENTER: Fill in the form below with your qualifying entires. Good luck! 

 

This is a sponsored post yet, as always, my opinions are 100% my own.

  

 

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55 Comments

  1. Tax time is stressful! Will be glad when it’s over! I have started compiling the paperwork.

  2. I haven’t started yet but I can’t say I’m a huge fan of doing it. That’s probably why I procrastinate.

  3. I’ve started gathering all my files but still have many to go through. I stress at tax time. And with these new changes, who knows what will happen LOL More grey hairs is my best guess!

  4. that is something i do not deal with! i give that job to the hubby lol. as far as i know he doesnt have any paperwork gathered up

  5. I have a file folder that I keep all my income tax papers in over the year so once those T4’s come in it’s off to file we go! My Husband and I used H&R Block for several years when they started to offer a refund cheque on the spot. I had been audited a few times before that and anyone that has been audited knows it takes months to get your refund! So that was a nice luxury being able to receive it the same day. But then I discovered Turbo Tax and since our returns were pretty straight forward, I felt comfortable filing them myself. However, in November we welcomed our very first bundle of joy. With the new Family Tax Cut and being off on maternity leave I think this year we’ll leave it to professionals!

  6. As they’ve been coming in, I’ve been putting them together. I also hate tax time…

  7. I have a file folder on my desk for tax papers. I have started compiling them. I get a little stressed at tax time. I’m always worried we’re not doing something correctly. My husband does our taxes with a tax software.

  8. I’ve started gathering my papers for my husband. I get everything together and he does the taxes for us.

  9. I actually like tax time because I like to see what i (hopefully) get back! We are compiling papers as we get them, some don’t even come in until the last minute

  10. I enjoy tax time. I like taking a look at our finances and figuring out if we will be getting a refund.

  11. I am not organized enough,every year I have to search..I never learn it seems lol

  12. The papers are all starting to come in now and I’m organizing them as they come. I think tax time can be stressful if you’re not organized.

  13. I hate tax time. I do mine, my hubby’s & my moms taxes & it’s a pain in the a$$!
    Every few years we pay to have a professional do it to make sure I didn’t mess anything up or forget anything. I live for these years! lol
    The only bright side is that we usually use our refund towards a trip! It’s like a vacay savings account!

  14. I have started putting receipts together as they trickle in. I am excited about the new family tax credits.

  15. I have received a few things in the mail that I’ve set aside. I hate this time of year and I’m glad when it is all over!

  16. I have not started yet, I usually wait till mid March to ensure everything has arrived.

    Tax filing is just a yearly necessary evil. Cant wait to get it done every year.

  17. Yep, I’ve got my stuff mostly ready… it’s so easy when you have the right program, and it doesn’t take long at all… and yet every year I put it off 🙁

  18. We’ve got almost all of our forms ready to go, just waiting on a few more. I hate tax time. stressful part of the year.

  19. This year will be my first year going to H &R Block. I always get a bit stressed this time of year.
    This is a area where I need the experts advice and help.

  20. Still waiting for a T4 and want it now. Need to get our refund to pay off bills.

  21. i have started to collect the T slips as they come in.
    my thought at this time is dread.

  22. I haven’t started collecting all my paperwork yet. Definitely not a task I look forward to.

  23. I’ve gotten some things together but I haven’t taken a good look at everything yet.

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