The Canada Revenue Agency offers multiple benefits, credits, and deductions to Canadian families, which can help your family with your annual expenses and may even lower your tax owing!
Here are seven opportunities, which will help offset costs and reduce taxes.
Canada Child Benefit
The Canada child benefit helps to offset the cost of raising children under the age of 18. It is a new program that is replacing the Canada child tax benefit, national child benefit supplement, and the universal child care benefit.
The benefit may include the child disability benefit and any related provincial and territorial programs and provides up to $6,400 annually for each child under the age of 6 and $5,400 annually for each child aged 6-17.
There are three ways to apply for this program:
- Automated Benefits Application
- My Account
- Form RC66, Canada Child Benefits Application
Child Care Expenses
If you paid someone to care for your children while you and your spouse or common-law partner earned income from employment, carried on business alone or as a partner, attended school or carried out research, you may be able to claim an amount on eligible expenses.
Working Income Tax Benefit
This benefit provides relief to low income workers. If you have low income and are a working family or individual, you may be eligible to receive the working income tax benefit.
If you are eligible for this benefit, you may also be able to apply for advance payments.
Child Disability Payment
If you care for a child under 18 years of age, who is eligible for the disability tax credit, you may be able to receive this tax free benefit. The benefit is paid monthly as part of the CCB.
Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit
The GST/HST credit was put in place to help offset the GST/HST paid by families and individuals. The payment is received quarterly and is tax free. Your eligibility is determined when you file your income tax return and depends on your family income and the number of children you care for. You could receive up to $552 plus $145 for each child, per year.
Children’s Fitness Tax Credit
The Children’s Fitness Tax Credit helps to offset the cost of prescribed physical activities for your children. As of 2016, the maximum amount for which a taxpayer can claim eligible fitness costs is $500 per child.
It is important to note that the additional amount of $500 for children who are eligible for the disability tax credit has not changed.
If you claim these amounts, you will receive a maximum credit of $75 ($150 for a child who is eligible to receive the disability tax credit).
Children’s Arts Tax Credit
The Children’s Arts Tax Credit helps offset the cost of your child participating in a program of artistic, cultural, recreational or developmental activity. As of 2016, the maximum amount for which a taxpayer can claim eligible fitness costs is $250 per child.
It is also important to note that the additional amount of $500 for children who receive the disability tax credit will not change.
If you claim these amounts, you will receive a maximum credit of $37.50 ($112.50 for a child who is eligible to receive the disability tax credit).
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