By now, most people have received the slips required to proceed with preparing their individual tax returns. We know, the deadline for people who are not self-employed, to file their 2014 tax return is not until April 30, so why do today what can be put off until tomorrow? By figuring out whether you owe money or are owed money, you can plan accordingly. If you will be receiving a refund, file now because it takes less time for the Canada Revenue Agency to process returns than it does closer to the deadline date. You will also receive your refund more quickly. If you owe money, absolutely wait until the end of April to file. Just be aware that you could be assessed for penalties and interest for missing the filing deadline.
For 2014, there have been some changes to tax credits available for families with children.
Children’s Fitness Tax Credit
Families can claim up to $ 1,000 per child under 16 for activities that promote physical activity. These programs must be supervised, require significant physical activity and ongoing. Ongoing is defined as lasting at least 8 weeks or 5 consecutive days in the case of summer camps. The lowest tax rate of 15% is used to calculate the credit, so the maximum tax credit per child in 2014 is $ 150.
Children’s Art Tax Credit
This tax credit remains the same as last year. Parents can claim up to $ 500 per child under 16 for registration in eligible artistic, cultural, recreational or developmental activities. Full details can be found on the Canada Revenue Agency’s website.
Family Tax Credit
This controversial tax credit allows couples with children under 18 to split their income. Couples will be able to transfer up to $ 50,000 from one partner to another, which would allow that income to be taxed at a lower amount. This initiative benefits families earning the highest amounts of money at the expense of families earning lower amounts and in most need of tax cuts.