If you have children under 18, you will benefit from the new Family Tax Benefits announced by federal government on Oct 9, 2014. Here’s what’s new:
Enhanced Universal Child Care Benefit (UCCB)
Now, if you have child under the age of 6 years, you are receiving $100/month for each child. Under the new family tax benefits, the UCCB will increase monthly $60, from $100 to $160 for each eligible child under the age of 6 years effective January 2015.
The new family tax benefits also extended UCCB payments until age 18. As a result, you will receive UCCB $60/month for each child age between 6 and 18.
If you are currently receiving the UCCB or CCTB, the increase will be applied automatically. If you currently do not receive UCCB or CCTB, you can apply online by using “Apply for child benefits” through the CRA’s My Account.
While the changes to the UCCB will be effective from January 2015, the first seven months’ difference will be paid out in July 2015.
Increase child care expense limits
The maximum deduction limits for child care expenses will increase from:
- $10,000 to $11,000 for each child who is eligible for the Disability Tax Credit.
- $7,000 to $8,000 for each child who is under seven years of age at the end of the year, and
- $4,000 to $5,000 for each child who age between 7 to 16 and infirm dndent children over age 16
The increasing will start with the 2015 tax year. It means you can claim it in your 2015 tax return
Increase children’s fitness tax credit
The maximum amount of children’s fitness tax amount is increased from $500 to $1,000. You will be able to take advantage of the increased maximum amount when you file your 2014 income tax return.
On October 9, 2014, a proposal was announced to convert the Children’s Fitness Tax Credit to a refundable tax credit for 2015 and subsequent tax years.