How To Save Tax For Canadians – Income Tax Tips You Should Know



4 Ways For Canadian Families To Pay Less Tax

*** Please do your own due diligence and consult a certified tax expert. ***

*** This video is only intended for educational purposes, eh. ***

The Government of Canada has proposed a package of tax cuts and increased benefits… to make life more affordable for Canadian families in this beautiful country.

Here’s how Canadian families can hopefully put more money in their pockets this year:

1. The Family Tax Cut

The new Family Tax Cut can lower a family’s overall tax bill by allowing a spouse to essentially transfer up to $50,000 of taxable income to a spouse in a lower tax bracket for federal tax purposes, providing tax relief up to a maximum of $2,000. This measure is aimed at couples with children under the age of 18, where one spouse is in a higher income tax bracket than the other.

For example, if one spouse earns $75,000 per year and the other earns $15,000…

… the higher- income earner could effectively transfer $30,000 to the lower-income spouse for federal tax purposes.

This would reduce the amount of tax the couple pays by bringing the higher-income spouse into the lowest income tax bracket, resulting in the maximum tax savings of $2,000.

Couples can claim the Family Tax Cut on their current tax year returns.

To benefit, it is essential that each spouse must file a tax return, and either spouse may claim the credit.

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Tax saving secrets for Canadians:

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2. The Universal Child Care Benefit

As part of its family-friendly measures, the Canadian Government is also proposing to enhance the Universal Child Care Benefit. Parents with children under the age of 6 would receive $160 per month, up from $100.

In addition, parents with children aged 6 through 17 would receive $60 per month. Not bad.

How do parents qualify?

By completing the Canada Child Benefits Application form.

Parents who have already completed this form to access other child-related benefits do not have to resubmit the form unless their family situation is different.

3. The Child Care Expense Deduction

Parents incurring child care expenses to go to work or school can deduct child care expenses from their income when filing their tax returns.

Starting in the 2015 taxation year, the Government has proposed that the maximum dollar amount that can be claimed each year increase by $1,000. The new maximum dollar limits would be:

• $8,000 per child under age 7
• $5,000 per child aged 7 to 16 (and for infirm dependent children over age 16)
• $11,000 for children who are eligible for the Disability Tax Credit.

4. The Children’s Fitness Tax Credit

If parents have kids enrolled in sports to keep them active, they can now claim expenses of up to $1,000 per year for each eligible child. That’s double what they could have claimed previously.

Parents can take advantage of the new $1,000 limit when they file their tax returns for the current tax year.

1) The Family Tax Cut
2) The Universal Childcare Benefit
3) The Child Care Expense Deduction
4) The Children’s Fitness Tax Credit

Please do your own due diligence and contact a local tax expert to confirm that you’re eligible for what you’ve seen and heard in this video.

Thanks for watching.

Tax saving secrets for Canadians:

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