November 6, 2014

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Recently, the federal government announced a new income-splitting benefit for couples with children under the age of 18 in efforts to make life more affordable for Canadian families, as part of a series of new tax measures.

What are the new tax measures?

In efforts to provide tax relief for some four million Canadian families, the government has proposed the following:

  • The Family Tax Cut –a federal tax credit allowing a higher-income spouse to transfer up to $50,000 of taxable income to a spouse in a lower tax bracket, with a maximum of $2,000 a year in tax relief;
  • An increase to the Universal Child Care Benefit (UCCB) for children under the age of 6 from $100 to $160, as of January 1, 2015;
  • Expanding the UCCB to children aged 6-17;
  • Increasing the Child Care Expense Deduction dollar limits by $1,000, effective for the 2015 tax year.

The Family Tax Cut can be claimed in the spring of 2015 as families file their 2014 returns. As a result of these new measures, low-and-middle-income families will receive two-thirds of the overall benefits provided by the package.

For more information view full article on the Government of Canada website here.

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