Let the pre-election gift giving begin.
The Federal Government announced some tax breaks that will help families with children. The gist of the tax changes are as follows:
The net effect of the changes for income determination of a payor spouse will only be known once we have further information from the government.
This is likely the first of many pre-election promises.
Christmas has come early.
The Federal Government announced some tax breaks that will help families with children. The gist of the tax changes are as follows:
- The present Universal Child Tax Benefit that all parents with children under the age of 6 receive will increase from $100 per month to $160 per month. A new benefit of $60 will be paid per month for children children aged 6-17.
- The limits for claiming child care will also be increasing. For children who are 6 and under the credit will increase from $4000 to $5000. For children over 6 it will go from $7000 to $8000 and for disabled families from $10,000 to $11,000. For divorced families, each parent should be able to claim these amounts per household.
- Fitness credit increased from $500 to $1000.
- The government also announced income splitting only for families with children under the age of 18. Once spouse can transfer up to $50,000 income to the other spouse for tax purposes in order to get a refundable tax credit of up to 2000. In speaking with some tax experts this income splitting is likely to be similar to the pension income split, the deduction will come after Line 150, as such it should not affect a payor ex-spouses gross income determination. However, we will only be able to confirm this once the 2014 tax return is made available.
The net effect of the changes for income determination of a payor spouse will only be known once we have further information from the government.
This is likely the first of many pre-election promises.
Christmas has come early.