With the 2014 tax season well underway, it is important to highlight these 6 important changes that could affect your file.
Family Tax Cut Credit
a new non-refundable tax credit of up to $2,000 for eligible couples with minor children based on the net reduction of federal tax that would be realized if up to $50,000 of an individual’s taxable income was transferred to the individual’s eligible spouse or common-law partner. This would take advantage of a spouse’s lower income tax bracket.
Children’s Fitness Tax Credit
You can claim to a maximum of $1,000 per child for fees paid in 2014 relating to the cost of registration or membership for you or your spouse’s or common-law partner’s child in a prescribed program of physical activity.
Adoption Expense Tax Credit
As a parent, you can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $15,000. You can claim these incurred expenses in the tax year including the end of the adoption period for the child.
Medical Expense Tax Credit
There are two changes to note here. The long list of eligible medical expenses now includes the cost of designing a therapy plan for someone who qualifies for the disability tax credit. It also includes the cost of service animals that help people with severe diabetes.
Tax-Free Savings Account
People could put another $5,500 into a tax-free savings account in 2014. Another $5,500 can be socked away in 2015, bringing total cumulative contribution room since 2009 to $36,500 as of this year. Amounts withdrawn from a TFSA in 2014 can also be recontributed this year, increasing 2015’s available contribution room.
You no longer need to apply for the GST/HST credit. The tax department’s computers will now analyze your return and figure out if you’re eligible.