Tax changes to expect when you’re expecting
Congratulations! If you have a new baby or have a baby on
the way, there are plenty of credits and benefits you may be eligible to
Benefits Application – Save time and paperwork! When registering the
birth of your newborn, the mother of the child can also consent to use the
Automated Benefits Application (ABA), which allows you to automatically
apply for child tax benefits at the same time. If you live in a
participating province, you can consent to use the ABA on your child's
birth registration form. You will be applying for:
Your child will also be registered for the goods and
services tax/harmonized sales tax (GST/HST) credit.
Account – If you do not live in a participating province, you can
apply for the Canada child and family benefits by using the Apply for
child benefits service through My Account or by completing and mailing
Canada Child Benefits Application to your tax centre
Explanations of these benefits:
child tax benefit (CCTB) – The CCTB is a tax-free monthly payment made
to eligible families to help them with the cost of raising children under
18 years of age.
child care benefit (UCCB) – If you have children under the age of 18,
you may be entitled to this taxable benefit, which supports child care
choices for families. For the 2015 tax year, under UCCB, families will
receive $160 per month for each child under 6 and $60 per month for each
child aged 6 through 17. Payments are issued monthly.
and territorial programsMost provinces and territories have child
and family benefit and credit programs that combine with your Canada child tax benefit and the goods and services
tax/harmonized sales tax (GST/HST) credit.
credit – Families with low or modest incomes can receive this tax-free
quarterly payment to offset some of the GST/HST they pay.
income tax benefit (WITB) – Low-income families that are in the
workforce can claim this refundable tax credit to get personal tax relief.
With a child as your eligible dependant, you may now be able to claim this
tax credit or the amount claimed may increase.
amount – If you or your dependant has a severe and prolonged
impairment in physical or mental functions, you or your dependant may be
eligible for the disability tax credit (DTC). To determine eligibility,
you must complete Form T2201,
Disability Tax Credit Certificate and have it certified by a medical
practitioner. Canadians claiming the credit will be able to file online
regardless of whether or not their Form T2201 has been submitted to the
CRA for that tax year.
disability benefit (CDB) – The CDB is a tax-free benefit for families
who care for a child under age 18 who is eligible for the disability tax
education savings plan (RESP) – You can start saving for your child’s
future now. An RESP is a contract between you (the subscriber) and another
individual or organization (the promoter) that allows you to make
contributions toward your child’s future education. Programs such as the Canada
education savings grant (CESG) and the Canada
learning bond (CLB) are other great incentives to create an RESP for
2016 Tax Tips
for 2015 Filing Year
Did you know
that last tax filing season, the average tax refund was just under $1,800, or
about $150 a month? That’s a lot of money to give to the government on an
interest-free basis. Yet that’s what almost 17 million tax filers did and CRA
paid back approximately $30 Billion dollars. Astute tax filers will want to get
that money back working for their own futures quickly this year. If that
includes you, do file your tax return early and accurately. But make sure you
have all your documentation, first.
Make a point of acquiring and reviewing tax software if you are
NETFILING this year. If you hire a pro, make an appointment as soon as possible
to determine what is needed to meet new tax filing rules and discuss what has
changed in your personal affairs. Births, deaths, marriages, divorces, new jobs
and job terminations – all can impact the tax return.