Are you a high school student graduating this spring? Are you planning to pursue a post-secondary degree in Accounting, Commerce or Business Management?
Find out more about the WWO 2016 Scholarship by following this link and selecting “High School Application” : http://woodmanwhite.ca/wp-content/uploads/2015/11/2016-Scholarship-Application.pdf
MyCra is a mobile app from the Canada Revenue Agency for individual taxpayers. It allows secure access to view key portions of their tax information such as their Notice of Assessment, tax return status, and RRSP and TFSA contribution room. Follow the link to find out more!
For the 2015 tax year the deduction limits have increased by $1,000 annually per child for child care expenses as follows:
- For each child who is eligible for the Disability Tax Credit, the 2015 deduction limit is $11,000
- For each child who is under 7 years of age at the end of the year, the 2015 deduction limit is $8,000
- For each child who is aged 7 to 16 the 2015 deduction limit is $5,000
You can claim child care expenses that were incurred for services provided in 2015 such as payments made to caregivers providing child care services, day nursery schools and day care centers, educational institutions for the part relating to child care services, day camps and day sports schools where the primary goal of the camp is to care for children. However, you cannot claim payments for medical care, hospital care, clothing costs or transportation costs.
Note that if there is more than one person supporting the eligible child, it is the lower net income spouse that must claim the child care expenses.
For 2014 and 2015, Budget 2015 introduces a change to the calculation of the Family Tax Cut to allow the unused tuition, textbook and education credits transferred from a spouse or common-law partner. This change will affect a very small percentage of families, and will ensure that these families receive the appropriate value of the Family Tax Cut. The change may provide affected taxpayers between $2 and $750 more for the Family Tax Cut.
The CRA will automatically reassess taxpayers now that Royal Assent has been received, where it is apparent that they are entitled to an increased amount of the Family Tax Cut for 2014. If you are in this situation, you won’t need to ask the CRA for an adjustment.
Note that the Minister of Finance on December 7, 2015 announced the government’s intention to eliminate the Family Tax Cut for 2016 and subsequent years.
If you have capital gains arising from the disposition of certain properties, you may be eligible for the cumulative capital gains deduction, and may be able to reduce your taxable income. For dispositions in 2015 of qualified small business corporation shares and qualified farm or fishing property, the lifetime capital gains exemption (LCGE) limit has increased to $813,600. For 2016, the amount is $824,176. The deduction limit is indexed annually to inflation using the Consumer Price Index data as reported by Statistics Canada. In addition, for dispositions of qualified farm and fishing property after April 20, 2015, the 2015 federal budget introduced an additional deduction which increases the LCGE to $1,000,000.
Are you living common law? This applies to a person who is not your spouse (legally married), with whom you are living in a conjugal relationship, and whom at least one of the following situations applies. He or she:
- Has been living with you in a conjugal relationship and this current relationship has lasted at least 12 continuous months. Note in this definition, 12 continuous months includes any period you were separated for less than 90 days because of a breakdown in your relationship
- Is the parent of your child by birth or adoption, or
- Has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.
Make sure that you are correctly claiming your marital status on your 2015 tax return!
Are you curious as to what your family Child Benefit amount may be under the new budget? Here is a tool to help you estimate the amount: http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html
Are your children 16 years of age or younger? You need to read this!
For the 2015 tax year you can claim up to $1,000 of eligible fitness fees per child. The amount of the credit is 15% of the eligible costs. An important change for the 2015 year is that the Children’s Fitness Tax Credit is now refundable. This means that even if you are not paying any taxes you can get a refund from just claiming the Children’s Fitness Tax Credit for your children.
Note that children must have been 16 years of age at the beginning of the year in which an eligible fitness expense was paid. Examples of eligible costs include costs for hockey, golf lessons, horse-back riding and bowling.