Tax time is not necessarily everyone’s favourite time of year but it might help to know that since 2006, the government has cut taxes over 180 times, reducing the overall tax burden to its lowest level in 50 years and leaving more money in the pockets of hard-working Canadian families and job-creating businesses.
Once again this year I have posted an annual tax guide online at www.cannan.ca, which outlines the tax cuts available to you, including information on the newest family tax benefits proposed by the government.
The new tax package for families will benefit every single family with children under the age of 18 in Canada. Measures include:
1. Introducing the Family Tax Cut, a federal tax credit that will allow a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief – capped at $2,000 – for couples with children under the age of 18, effective for the 2014 tax year. Income splitting is helping seniors across the country, which is why the Government is now proposing similar relief for families.
2. Increasing the Universal Child Care Benefit (UCCB) for children under age six. As of January 1, 2015, parents will receive a benefit of $160 per month for each child under the age of six – up from $100 per month. In a year, parents will receive up to $1,920 per child.
3. Expanding the UCCB to children aged six through 17. As of January 1, 2015, under the expanded UCCB, parents will receive a benefit of $60 per month for children aged six through 17. In a year, parents will receive up to $720 per child.
4. Increasing the Child Care Expense Deduction dollar limits by $1,000, effective for the 2015 tax year. The maximum amounts that can be claimed will increase to $8,000 from $7,000 for children under age seven, to $5,000 from $4,000 for children aged seven through 16 and to $11,000 from $10,000 for children who are eligible for the Disability Tax Credit.
5. Doubling the Children’s Fitness Tax Credit and making it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.
Online Filing, Paper Filing and Assistance
80% of individual tax returns are now filed electronically. If you are thinking of filing online for the first time, CRA provides information to help you at www.cra.gc.ca/electronicservices.
For those of you who prefer filing a paper return, forms are available from the CRA at www.cra.gc.ca and at Canada Post outlets and Service Canada offices. You can also call the CRA directly at 1-800-959-8281.
If you need help filing your income tax, assistance is available through the Community Volunteer Income Tax Program.
In Kelowna, the Seniors Outreach Services Society located at 2055 Benvoulin Court, Suite 102, will help seniors living on a modest income with their tax returns for the current taxation year. For more information please call 250 861-6180 or send an e-mail to [email protected]. The clinic location is wheelchair accessible and clinics are held year round.
As always, if you have further questions or comments regarding this information, please don’t hesitate to contact my office at [email protected] or 250 470-5075. My staff is always ready to help.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.