New government tax changes.
On October 19th, 2015, Canadians elected a new Government that promised updates to Canadian taxes. However, these proposed changes will not be implemented until 2016 and therefore won't affect your 2015 tax return.
Below is a list of changes that could affect your taxes when you file this year, and a table at the bottom of the page outlining proposed tax measures for 2016.
Improvements to the Universal Child Care Benefit.
For the 2015 tax year the Universal Child Care Benefit has been improved. For each child under 6, families will receive $160 per month and $60 per month for each child aged 6 through 17.
Sweating for savings.
In 2014, the children's fitness tax credit was non-refundable. New for the 2015 tax year, this credit can now be refunded, if not applied to contribute to a reduction of tax payable to zero.
Know the limits of child care expense deductions.
For the 2015 tax year, Child Care Expense Deduction limits increased by $1,000 and are a maximum of:
- $8,000 for children under 7
- $5,000 for children 7-16
- $11,000 for children who are eligible for the Disability Tax Credit
Changes to Canadian taxes for 2016
The new Federal Government's election tax proposals will benefit Canadians spanning a variety of financial situations and will be addressed for 2016 and future tax years.
- Reducing the middle income tax bracket rate from 22% to 20.5%
- Creating a new tax bracket for individuals earning more than $200,000 with a tax rate of 33%
- Replacing the Universal Child Care Benefit with a new Canada Child Benefit to provide an extra $2,500 a year for a typical family of four with a household income smaller than $200,000
- Ending the Family Tax Cut
- Cancelling plans to gradually increase the eligibility age for Old Age Security
- Returning the maximum amount you can contribute to TFSAs per year from $10,000 back to $5,500
- Educators are eligible for a 15% refundable tax credit on qualifying supplies
Take advantage of Canadian tax changes today.