What’s New For Your Tax Return?
New Credits Should Mean Bigger Refunds for Canadian Families
Tax season isn’t usually a time of year people look forward to. In fact, most Canadians dread the idea of organizing, filing and then potentially owing money to the government instead of seeing money back in their pockets. Fortunately, there are new tax credits that will affect 2014 returns for a lot of families in a positive way. Caroline Battista, senior tax analyst with H&R Block, provides insight on some of the new credits families – and other Canadians – can take advantage of this tax season:
- 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 asked on a recent Leger survey if they were aware of the credit, 72% of Canadians 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.
If filing your own taxes seems like a daunting and stressful task, it’s OK to ask for help. A local H&R Block tax professional can help you through the entire process and ensure you take advantage of every credit available so you don’t miss a thing.
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This list is compiled by a tax adviser at H&R Block Canada who has sponsored this blog post. The information provided here is a general list for information purposes. Taxes vary among people so always consult a tax professional for certainty. Therefore, no responsibility for loss caused by any person acting or refraining from action as a result of the material contained in this bulletin can be accepted by H&R Block Canada, Inc. or Larkycanuck.com