Comprehensive tax cut and benefit package for Canadian families:
1) The Canadian Fitness Tax Credit (CFTC):
– parents can claim expenses from placing their children into sports or after-school activities on their income tax return
– The CFTC is being doubled from $500 to $1,000 refundable, so families who don’t earn enough income to pay income taxes will still receive the money
2) Income Splitting:
The larger tax cuts announced will allow couples with children under 18-years-old to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket to reduce their tax burden. Families will be allowed to save up to a maximum of $2,000 under this new rule.
3) The Universal Child Care Benefit (UCCB) :
Every child under 6-years-old families will receive an additional $60 as well as the $100 they were already getting each month. The new higher UCCB will begin with the July, 2015 payment, which if filed for would also include up to six months to cover the January to June, 2015 period.
4) Child Care Expense Deduction (CCED) :
The CCED is increasing to $8,000 from $7,000 for children under 7, to $5,000 from $4,000 for children aged 7-16-years-old, and to $11,000 from $10,000 for children eligible for the Disability Tax Credit.