Canadian Parenting and Child Care Community forums - parent and childcare provider advice and discussions

Author Topic: Tax Tips for Families with Children  (Read 4330 times)

Offline CareDC

  • Administrator
  • Schoolager
  • *****
  • Posts: 1875
Tax Tips for Families with Children
« on: March 17, 2008, 04:49:28 PM »
    -   Families will benefit from a new $2,000 Child Tax Credit for each
        child under the age of 18 at the end of 2007. This will result in a
        federal tax saving of $300 per child. And if one parent cannot use
        the entire amount to lower their tax payable, the unused amount can
        be transferred to a spouse or common-law partner.

    -   This is the first year parents can claim the Children's Fitness
        Amount. The non-refundable credit is worth up to $500 for children
        under the age of 16 enrolled in an eligible program of physical
        activity. Not every program meets the eligibility guidelines so you
        need to ensure you know the requirements. Make sure you keep your
        receipts. Disabled children will also qualify for the credit if they
        are under 18.

    -   The Universal Child Care Benefit (UCCB) is available to any child
        under the age of six regardless of the family's income. Each child
        under six is eligible for the $100 per month benefit. UCCB is taxable
        in the hands of the lower-income spouse.

    -   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 who use public transit can claim a non-refundable tax
        credit for their passes. This includes passes purchased for dependent
        children under the age of 19. The passes have to be for a period of
        at least one month or weekly passes purchased over a period of four
        consecutive weeks. Electronic payment cards also qualify.

    -   The rules for Registered Education Saving Plans (RESPs) have changed
        for this year. Designed to help save for a child's post-secondary
        education, the RESP amount has been raised to $50,000 lifetime
        contribution. There are also no longer any annual limits on RESP
        contribution. Canada Education Savings Grant (CESG) per year has been
        increased from $400 to $500.

    -   A new Registered Disability Savings Plan (RDSP) is being 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.

    -   Lower income families qualify for the Canada Learning Bond (CLB). The
        Government provides $500 in a CLB at birth for children whose
        families are entitled to the National Child Benefit Supplement. As
        long as the family is still entitled to the supplement, they will
        receive an additional $100 CLB each year until the age of 15.

    -   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.

Offline CareDC

  • Administrator
  • Schoolager
  • *****
  • Posts: 1875
Re: Tax Tips for Families with Children
« Reply #1 on: May 02, 2008, 10:41:26 AM »
Here is a link with information for parents in regaards to Children's Fitness Tax Credit

Starting with the 2007 tax year, the Government of Canada allows a non-refundable tax credit based on eligible fitness expenses paid by parents to register a child in a prescribed program of physical activity.
« Last Edit: March 18, 2010, 09:18:34 PM by CareDC »


©2016 All rights reserved

Privacy and Terms of Use | Contact Us | Read our FAQ | Resources