TORONTO, March 5 /CNW/ - Children can be overlooked during the tax
season. From the time of birth, there are tax issues that parents need to be
aware of. Here are key tips to help parents along during the tax season:
- Upon the birth of a child, parents should complete Form RC66, Canada
Child Tax Benefit Application and send it to the CRA. This form will
register their child for the GST/HST Credit and Universal Child Care
Benefit (UCCB) as well as the Child Tax Benefit.
- The recently introduced Universal Child Care Benefit (UCCB) is
available to any child under the age of six regardless of the
family's income. Each child under six is eligible for the $100 per
month benefit. UCCB is taxable in the hands of the lower-income
- Taxpayers who use public transit can now claim a new non-refundable
tax credit for their passes. This includes passes purchased for
dependent children under the age of 19. The passes have to be for a
period of at least one month in order to qualify
- A new Children's Fitness Tax Credit was announced in the last Federal
Budget but it will not be available until the 2007 tax year. Parents
can claim up to $500 for children under the age of 16 enrolled in an
eligible program of physical activity. Make sure you keep your
receipts so you can claim your credit next year.
- Registered Education Saving Plans (RESPs) can help save towards a
child's post-secondary education and the Government of Canada will
contribute an additional 20 per cent as part of the Canada Education
Savings Grant (CESG) up to a maximum of $400 per year. Families with
income under $72,756 will receive an increased rate on the first $500
- Lower income families qualify for the Canada Learning Bond (CLB). The
Government provides $500 in a CLB at birth for children whose
families are entitled to the National Child Benefit Supplement. As
long as the family is still entitled to the supplement, they will
receive an additional $100 CLB each year until the age of 15.
- Apply for a social insurance number at birth. You will need this in
order to open an RESP. It will also be required even for minor jobs
such as babysitting or paper routes. Money earned from this type of
employment qualifies for the calculation of an RRSP deduction limit.
A local H&R Block spokesperson is available to talk about more tax tips
for families with children.
About H&R Block Canada
H&R Block Canada prepares nearly two million tax returns annually, making
it Canada's leading tax preparation firm. Headquartered in Calgary, Alberta,
the company serves Canadian taxpayers in more than 1,000 offices across the
country. H&R Block Canada Inc. is a subsidiary of H&R Block, Inc., a
diversified company with subsidiaries providing a wide range of financial
products and services. Additional information about H&R Block Canada is
available at 1-800-HRBLOCK or visit www.hrblock.ca for more tax tips.
For further information:
For further information: Tina Quelch, Calador Communications, (416)