The Harper government has announced new family tax cut measures to fulfill his promise for income splitting and other tax relief for families during the last federal election. Here is a brief outline of the changes:
- The Universal child care benefit will be raised from $100 per month per child to $160 per month per child up to age 6.
- A new credit of 60 per month for children aged six to seventeen years is also being introduced.
- The new tax measures will take effect on January 1st, 2015 but will only start being paid in July 2015 with a retroactive cheque of $420 per child under age 18.
- A new “Family Tax Cut” will allow an eligible taxpayer to transfer up to $50,000 of income to his or her lower income spouse in order to collect the new non-refundable federal tax credit. The new tax break will be capped at $2000 per year.
- The government will allow families to take advantage of this tax break in the current 2014 tax year.
More details later when we find out exactly how the new “Family Tax Cut” and credit will work for typical taxpayers.