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New 2014 Taxation Changes

Like the sand in the desert, taxation is an ever changing, moving landscape and the wind was moving some of that sand again today as the government announced some proposed alterations, enhancements and changes.

  • Family Tax Cut: this is a proposed tax credit available to couples with children under 18 that will be a benefit if one spouse's income is significantly higher than the other. This credit will provide a tax saving similar to what would be realized if up to $50,000 of income was transferred to the lower income spouse. The maximum tax savings will be $2000, this will be in effect for the 2014 tax year.
  • Enhanced Universal Tax Credit: this credit is available to parents with children under 6 years of age that has been worth $100 per child and is proposed to increase to $160 per child.
  • Child Care Expense Deduction: it is proposed that the limit on the amount of child care per child that can be claimed each year will rise by $1000.
  • Elimination of Child Tax Credit: this is a non refundable tax credit parents may claim for children under 18 years of age. This will be eliminated for the 2015 taxation year.
  • Children's Fitness Tax Credit: increasing the maximum claim per eligible child from $500 to $1000 as a non refundable credit in 2014 and making it a refundable credit in 2015 (non refundable credits reduce tax payable only whereas refundable credit will pay a refund to you if there s no tax to pay.
  • Small Business Job Credit: this will refund EI premiums to employers at a rate of 28 cents for every $100 of insurable earnings paid.

Kelvin Shultz RPA CAFA Dip Ag