VANCOUVER, February 24, 2017 – Managing your family’s expenses can be stressful. Any amount a family can save is money for the future. As families prepare their income tax return, consider the following tax tips from the Chartered Professional Accountants of British Columbia (CPABC):
1. Got creative or athletic children?
Remember, 2016 is the last year to claim the children’s arts tax credit and the children’s fitness tax credit. If you have a child under 16 years of age who participates in artistic or cultural activities, you may be able to claim a non-refundable tax credit based on eligible expenses of up to $250. If you pay for your child’s fitness activities that are outside the school’s curriculum, you may be able to claim up to $500 of eligible fitness expenses paid per year. To substantiate your claims, make sure you obtain a receipt from your child’s program organizer. You are not required to submit the receipts with your return, but you should retain any documentation in case the Canada Revenue Agency asks for copies at a later date to verify your claim.
2. What’s the Canada Child Benefit?
As of July 1, 2016 the Canada child benefit (CCB) replaced the Canada child tax benefit (CCTB), the national child benefit supplement (NCBS), and the universal child care benefit (UCCB). The CCB is a monthly tax-free payment for families with children under the age of 18. For each eligible child under the age of six, the CCB benefit amounts to $6,400 per year. For each eligible child age 6 to 17, the CCB benefit amounts to $5,400 per year. The tax credit begins to reduce once adjusted family net income is over $30,000 and is eliminated for one-child families earning more than $188,438 per year.
3. Are you a working parent?
You might be able to deduct your child care expenses if they were incurred to enable you” to work, attend school, or engage in grant research. These expenses can include day care, nursery school, day sports camp, lodging at a boarding school or camp, and certain payments to babysitters. The maximum deduction differs across age groups and note that the maximum total deduction may not exceed two-thirds of your earned income and the actual amount paid in the year for child care. Remember, the deduction can only be claimed by the lower income spouse, except under circumstances.
Save some money for your children’s future with CPABC’s RRSP and Tax Tips at www.rrspandtaxtips.com.
NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these RRSP tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for almost 35,000 CPA members and 5,500 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
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For more information or to arrange an interview, contact:
Vivian Tse, Public Affairs Specialist