Today Prime Minister Stephen Harper announced $4.6 billion a year in tax cuts for Canadian families. This will be accomplished by way of income splitting as well as an expansion of the Universal Child Care Benefit.
Effective January 1, 2015, the Universal Child Care Benefit will increase to $160 per month for each child under six. The program will now pay $60 per month for each child aged 6 to 17. This expansion of the program is being funded through elimination of the existing Child Tax Credit.
Couples with children under the age of 18 will be able to transfer up to $50,000 in income from the higher income spouse to the lower income spouse. This is effective for the 2014 taxation year. The maximum benefit allowed under this income splitting arrangement is $2,000.
Still not sure how these changes apply to you? Contact us today at 647-557-7591 to learn more about our personal tax services.