Family tax credits: What you need to know
Taxes are, well, boring.
However, when you look at the tax credit part of the equation, they become a little more interesting.
Did you know that there were some changes made to available family tax credits in 2014, most of which will take effect in 2015? Make sure you are maximizing what is available to you.
Here are a few to keep on your radar:
Children’s Fitness Tax Credit
I wish this one was far more, given the amount of cash this family directs towards sports, but the good news is that there was an increase.
The Children’s Fitness Tax Credit has now increased from $500 to $1000 per child. What this means is that the credit itself (the way they calculate it) is worth an extra $75/per child.
So, hang on to those receipts and be sure to include these amounts on your tax return.
A note- if your child is not an athlete, but is pursuing some creative extracurriculars instead, make sure you are utilizing the Children’s art tax credit.
Child care expenses
For many, it may seem like you are working simply to pay for child care. The good news is that there will be slightly more respite in the year to come.
The deduction limits are increasing to:
- $8,000 (from $7,000) per child under age seven,
- $5,000 (from $4,000) per child age seven to 16 (and infirm dependent children over age 16), and
- $11,000 (from $10,000) per child who is eligible for the Disability Tax Credit, regardless of his or her age.
Universal Child Care Benefit (UCCB)
For 2015, you can expect an increase in this handy little payment.
Incidentally, this is the kind of extra little payment that you could direct towards specific savings or towards paying down specific debt loads
The increase is:
- $160 (from $100) per month for each child under six, and
- $60 (from $0) per month for each child between six and seventeen.
This is usually paid out via cheque or direct deposit monthly, but there will be a period of adjustment in 2015, with additional lump sums, for the most part, to be paid in the summer.
For more information on the payment schedule, amounts and how to enroll, click here.