On October 30, 2014, the federal government announced new measures aimed at alleviating the tax burden for families. Among other things, families with children will benefit from the following new tax breaks:
- A new federal tax credit (Family Tax Cut) available to couples with children under the age of 18 will allow the higher earning spouse to transfer up to $50,000 of income to the lower earning spouse, an income-splitting mechanism that will save families up to $2,000 a year in federal taxes.
- Under the expanded Universal Child Care Benefit (UCCB), families will now receive $160 per month for each child under the age of 6, an increase of $60 per month.
- Parents of children aged 6 to 17 will receive $60 per month as a result of broadened eligibility to the UCCB.
- Under the new annual Childcare Expense Deduction Limits, parents will be able to claim $1,000 more for every child starting in the 2015 tax year, effective January 1.
For more information regarding these new measures, go to:
http://www.fin.gc.ca/n14/14-155-eng.asp