TORONTO, March 17 /CNW/ -
- Families will benefit from a new $2,000 Child Tax Credit for each
child under the age of 18 at the end of 2007. This will result in a
federal tax saving of $300 per child. And if one parent cannot use
the entire amount to lower their tax payable, the unused amount can
be transferred to a spouse or common-law partner.
- This is the first year parents can claim the Children's Fitness
Amount. The non-refundable credit is worth up to $500 for children
under the age of 16 enrolled in an eligible program of physical
activity. Not every program meets the eligibility guidelines so you
need to ensure you know the requirements. Make sure you keep your
receipts. Disabled children will also qualify for the credit if they
are under 18.
- The 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 spouse.
- 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.
- Taxpayers who use public transit can claim a 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 or weekly passes purchased over a period of four
consecutive weeks. Electronic payment cards also qualify.
- The rules for Registered Education Saving Plans (RESPs) have changed
for this year. Designed to help save for a child's post-secondary
education, the RESP amount has been raised to $50,000 lifetime
contribution. There are also no longer any annual limits on RESP
contribution. Canada Education Savings Grant (CESG) per year has been
increased from $400 to $500.
- A new Registered Disability Savings Plan (RDSP) is being introduced
to help families save for the financial security of a disabled family
member. There are great incentives provided to encourage people to
open RDSPs like Canada Disability Savings Grant, which will provide
matching government contributions. For a lower income family, a one
time Canada Disability Savings Bond will provide an initial
government contribution of up to $1,000 to kick-start the plan.
- 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 upon a birth of the child. 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
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)