Tax Change Gifts from Your Federal Government

In October 2014, the Federal government announced a number of proposed tax changes that could positively affect your total overall tax situation for 2014.  Four measures are being implemented to help families prosper through tax reductions and benefit increases.

These changes, along with careful tax planning, in many cases can lead to a larger than anticipated refund.  The most significant proposed tax changes include:

  • Increasing the Universal Child Care Benefit (UCCB) for children under the age of 6. Under the proposed changes, parents would receive a benefit of $160 per month for each child under the age of 6—up from $100 per month—as of January 1, 2015. In a single year, a parent would receive up to $1,920 per child.
  • Expanding the UCCB to children aged 6 through 17. Under the expanded benefit, parents would receive $60 per month, as of January 1, 2015, for children aged 6 through 17. In a single year, a parent would receive up to $720 per child. The enhanced UCCB will replace the existing Child Tax Credit for 2015 and subsequent taxation years.
  • Introducing the Family Tax Cut. This federal non-refundable tax credit will allow a spouse to, in effect, transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. Effective as of the 2014 taxation year, the credit would provide tax relief to couples with minor children, up to a maximum of $2,000.
  • Increasing the Child Care Expense Deduction dollar limits by $1,000.  Effective for the 2015 taxation year, the maximum amount that can be claimed would increase as follows:
    • to $8,000 from $7,000 for children under age 7;
    • to $5,000 from $4,000 for children aged 7 through 16 (and infirm dependent children over age 16);
    • and to $11,000 from $10,000 for children who are eligible for the Disability Tax Credit.

Visit the Government of Canada website for the full version of the Update of Economic and Fiscal Projections – 2014, where you will find examples of family situations and the benefits that these changes provide.

If you have any business, tax or other related questions, please call Stan Swartz at 416-665-7735 ext. 224, or email him at

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