2014 was a landmark year for enhanced family and child related tax benefits. We are committed to helping you get the most from these government announced initiatives. Here’s what’s proposed:

UNIVERSAL CHILD CARE BENEFIT

• As of January 1st, 2015 the UCCB would increase to $1,920 per year for each child under the age of 6 ($160/mth from $100/mth)
• The UCCB would also expand with a new benefit of $720 per year for each child aged 7-17 ($60/mth from $0/mth)
• CRA will issue a ‘catch-up payment’ for amounts payable from January through June in July 2015. This means:
  • for children under 6, you could receive $60/mth from January to June, for a total of $520 in July, and $160/mth starting in August
  • for children between 6-17, you could receive a total of $420 in July and $60/mth starting in August
• This credit is available to all families, regardless of income, and is in addition to the Child Tax Benefit (CTB) program

FAMILY TAX CUT

• This new tax credit (often referred to as income splitting) is worth up to $2,000 in tax savings for families with children under age 18
• It allows one spouse to transfer up to $50,000 of taxable income, in effect to a spouse in a lower income tax bracket
• Both spouses must complete their returns at the same time to be eligible for the calculation of total income and the family tax credit
• This credit won’t provide any relief for single parent families

CHILD FITNESS TAX CREDIT

• The maximum eligible amount has doubled to $1,000
• Effective for 2015, becomes a refundable credit
• Can be claimed for children under 16 at the beginning of the year, or under age 18 for children with a disability

CHILD CARE EXPENSES

• Increases apply for child care expenses in 2015 and forward:
  • Up to $8,000 per year per child under age 7
  • Up to $5,000 per year per child aged 7 to16
  • Up to $11,000 per year for children with a disability

SEARCH & RESCUE VOLUNTEERS TAX CREDIT

• This is a new non-refundable tax credit of $3,000 for volunteers who perform 200 hours or more of eligible services with search & rescue organizations or fire departments
• Hours of service since Jan 1st, 2014 qualify for the credit; a written certificate of hours if required to claim the credit
• If eligible, you may claim either the volunteer firefighter credit or this credit, but not both

ONTARIO FOOD PROGRAM DONATION TAX CREDIT

• This is a new Ontario non-refundable tax credit for agriculture products grown and donated to an eligible community food programme as of January 1st, 2014
• Available to farmers, their spouses and to corporations who carry on a business of farming in Ontario, the credit is worth 25% of the Fair Market Value (FMV) of the product donated

 

GST / HST CREDIT

• Effective with the 2014 tax return, CRA will automatically determine eligibility for this credit and a Notice of Determination will be sent to individuals who qualify – making the application is no longer required
• Designation of the recipient for the GST will be determined by CRA where either spouse/partner is eligible for the credit. A specific recipient can no longer be requested

 

*New Tax Credits proposed were announced in the 2014 federal budget, but will not become law until they have received Royal Assent through parliament. We will communicate updates and changes through our website as available. Check back often for what’s new!