Tax time is upon us and it stresses me right out. I know that many of you are the keener types have it all under control but I am still in the digging through the shoebox of receipts part of the process.
After I get everything organized I will be dumping it all on the desk of my favorite H&R Block professional, Hassan. He has been doing my taxes for years and he knows the ins and outs of both US and Canada tax law (important for me because I have to fill out both). While I did my own taxes back when they were simplistic, these days I have need the help of someone who keeps up with all the changes in the tax code on both sides of the border.
This year the Canadian tax changes that took effect may affect many of your families. Here is a great infographic that explains what you need to think about.
Want more details? Find them below straight from H&R block (because as I mentioned, I am NOT the person to ask…they are!).
- New Family Tax Cut: The Family Tax Cut provides a tax credit to families with children under 18 equal to the tax savings that would be realized if up to $50,000 of taxable income were transferred from the higher income to the lower income spouse or common-law partner. The maximum credit is capped at $2,000.
- Pumped up Children’s Fitness Tax Credit: If your children are active, the government increased the Children’s Fitness Tax Credit to $1,000 and made it retroactive for 2014. Parents should claim the receipts in the year they paid – not the year the activity takes place.
- More Universal Child Care Benefit: Though the UCCB does not show up in your tax refund, parents with children under 18 will start to see an increased benefit in July 2015. For children under six, the monthly amount will be $160 (up from $100) and for children between six and 18, it will be $60 a month. The increase for January to June will be paid in a lump sum in July 2015. And then parents can expect the increased amounts to arrive monthly after that. If you haven’t applied for the Canada Child Tax Benefit, use Form RC66.
- Remember the First-Time Donor Super Credit: Much like the name implies, if you were a first-time donor in 2014, you will get some extra credit for your donation. Originally introduced last year, when we asked Canadians on a Leger survey if they were aware of the credit, 72 per cent said no.
- New search and rescue credit: Meant to complement the volunteer firefighters credit, search and rescue volunteers who put in 200 hours or more of work can claim a personal amount of $3,000, which means $450 tax savings.
See? They know what they are talking about! Live in Canada and want to use H&R block? Enter to win one regular return (T4) that can be used at a retail H&R Block location. Value: approx. $100.