• Steinbach 204.326.3442 - 85 PTH 12 North, Steinbach, MB, R5G 1A7
  • Niverville 204.388.9300 - Box 1120, 62 Main Street, Niverville, MB, R0A 1E0
 

2016 Federal Budget for Families

On March 22, 2016, the Minister of Finance introduced the Liberal Government’s first Federal Budget.  Below are some examples of how the new proposed budget might affect you and your family.

Canada Child Benefit:

The Budget proposes to eliminate the current Canadian Child Tax Benefit program and the Universal Child Care Benefit, in favor of a new Canada Child Benefit program, that will be received tax free.  The program is limited to those households with children under 17 years of age, with a maximum benefit of $6,400 per child under 6 and up to $5,400 per child for those age 6-17.  The benefit is fully eliminated once household income reaches $157,188.

The estimate the amount of your potential Canada Child Benefit, visit the calculator here:  http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html

Income Splitting:

The Federal Budget also proposes to eliminate the income splitting tax credit for couples with at least one children under age 18 for the 2016 and subsequent tax years.  The previous federal credit allowed couples with at least 1 child under 18 to notionally transfer up to $50,000 of taxable income to their spouse for the purpose of reducing the couple’s total combined income tax liability by up to $2,000.

Children’s Fitness and Arts Tax Credits:

The new Budget proposes to phase out the children’s fitness and arts tax credits.  This will be done by reducing the 2016 maximum eligible amounts to $500 from $1,000 for the fitness credit, and to $250 from $500 for the art’s credit.  Both credits will be completely eliminated for the 2017 and subsequent tax years.

Education & Text Book Tax Credit:

The 2016 Budget proposes to eliminate the education and textbook tax credits  effective as of January 1, 2017, however the unused education and textbook credit amounts carried forward from years prior to 2017 will remain unaffected and can be claimed in 2017 and subsequent years.

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Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.




 
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