What’s New In Taxes For This Year
Finance Tips The tax deadline is just around the corner. You’ve likely heard about the changes announced by the Federal Government in December, but most of these won’t impact your 2015 taxes that are due on May 2. Here’s what you should know about changes that apply to tax year 2015.
Child Care Maximums Raised
For tax year 2015, the cap on child care deductions has been raised. For each child who is eligible for the Disability Tax Credit, the deduction limit is now $11,000. The child care deduction limit for a child who is under seven years of age at the end of the year is now $8,000. Parents of children born between 1999 and 2008 can now claim up to $5,000 in childcare expenses.
Refundable children’s fitness credit
New for 2015, the $1,000 Children’s Fitness Credit became a refundable credit. This change is great news for parents, especially those who may have previously not seen the tax benefit from such expenses. Individuals who have enough deductions to bring their tax owing to zero will now receive a refund of their children’s fitness fees. In past years, if your tax owing was zero, the credit was wasted.
Enhanced universal child care benefit
The initial change to the UCCB came last July when all parents with children under 18 began receiving monthly benefits. Part two of the enhanced UCCB program will be seen on your tax return. In previous years, a non-refundable credit named the “amount for children” of $2,255 was granted to parents. That credit is no longer available.
Lifetime Capital Gains Exemption on QFFP
For qualified farm or fishing properties (QFFP) disposed of after April 20, 2015, the lifetime capital gains exemption has risen from $813,600 to $1,000,000. Because capital gains are taxed at a 50 percent rate, this translates to a bottom line difference of $93,200 for claiming lifetime capital gains on QFFP only. Qualified small business shares not related to farming or fishing remain unchanged.
Small business job credit
Employment Insurance premiums are paid by both employers and employees. If you are the owner of a small business and have employees, you may see a refund of a portion of the Employment Insurance premiums you pay as an employer. The Small Business Job Credit applies to small businesses whose employer share of EI premiums is less than $15,000 annually. It translates to 39 cents per $100 of insurable earnings. There’s no application for the credit; CRA will do the math for you based upon the T4’s submitted for your employees. If you are entitled to a refund of EI premiums, you will automatically receive either a direct refund or the amount will be applied to any outstanding balance in your business’s payroll account.