Tax Tips for Families With Children

  • Universal Child Care Benefit: has been replaced with Child Tax Benefit - non-taxable income but family income dependent.
  • Child Tax Benefit: Upon the birth of a child, parents should complete Form RC66, Canada Child Tax Benefit Application and send it to the CRA. This form will register their child for the GST/HST Credit and Universal Child Care Benefit (UCCB) as well as the Child Tax Benefit. Taxpayers whose income is too high to get the Canada Child Tax Benefit will now have to also complete the RC66 in order to get the new Universal Child Care Benefit of $60 per month.
  • Child Care Expenses: Effective for 2015, the maximum dollar limits in the calculation of the deduction for child care expenses will all be increased by $1,000 as follows:
    • From $7,000 to $8,000 for children under 7;
    • From $4,000 to $5,000 for children aged 7 to 16 and infirm children over 16;
    • From $10,000 to $11,000 for disabled children
  • Save for future education: Designed to help save for a child’s post-secondary education, parents can make up to $50,000 RESP lifetime contribution. Canada Education Savings Grant (CESG) per year is $500.
  • Registered Disability Savings Plan: The RDSP was introduced to help families save for the financial security of a disabled family member. There are great incentives provided to encourage people to open RDSPs like Canada Disability Savings Grant, which will provide matching government contributions. For a lower income family, a one-time Canada Disability Savings Bond will provide an initial government contribution of up to $1,000 to kick-start the plan.
  • Canada Learning Bond: based in part on number of qualified children & adjusted income of co-habitating spouse or common law partner.
  • Get a SIN: Apply for a social insurance number upon a birth of the child. You will need this in order to open an RESP. It will also be required even for minor jobs such as babysitting or paper routes. Money earned from this type of employment qualifies for the calculation of an RRSP deduction limit.

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Contact

Jim Ostrander at Padgett Business Services can talk about other credits and deductions that may affect you. Call Jim at 403-948-7759 to schedule an appointment. #230 - 52 Gateway Dr NE, Airdrie

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