I have been slowly getting my Tax Returns together (I do them for most of my direct family), and while doing that I wondered if I was going to receive the announced $2000 tax rebate announced last fall, so I went looking to see whether that was the case.
I am talking about Line 423 of your return:
Under proposed changes, for the 2014 and subsequent tax years, you or your spouse or common law partner may be able to claim a non refundable tax credit of up to $2,000, if your child ordinarily lived with you or your spouse or common-law partner throughout the year.
Luckily, we have young Master C8j, and Mrs. C8j works “full part-time” so she does not earn too much, so we end up not eligible for this credit. Given Mrs. C8j stayed home for most of the time when my daughters were growing up, it would have been nice to have this credit back then, but I suppose I can’t complain about it. Naturally Turbotax Canada 2014 had the credit already calculated.
My only query ends up being, why is this being capped at $2000? I keep reading how it only helps the Rich Middle Class in Canada (I’d like to say “WTF?” to that one), or that somehow it discriminates against women working (yes I did read that, I ain’t making it up), anybody care to comment about how it is such a diabolical Harper Government ploy to take over our minds?
Is this enough to buy my vote? No, since (as usual) the program is half-baked (much like the TFSA and other ideas), and I am not a one issue voter.
I totally agree. Why is it capped at $2000 and also why is it only available for married people with kids? It is my rant of the day as I don’t have kids yet. I did not want to rush to have kids but may have to consider soon hahaha.
So the federal gov’t hands back $2000/year, and all everyone does is complain about how it’s not good enough?
In my case, yes. Same way folks complain about TFSAs and how they are only for the rich, why do people who don’t have kids have to pay school taxes, why are insurance rates so high and many other things.
But no, in my opinion, it is not good enough.
Thanks for the reminder, I’ve got to get started pulling our taxes together and find a good accountant. Have you ever done a post about when its time to use a pro for texes versus doing it yourself??
I haven’t, but a few folks have, so far I continue to do it myself, but if my “business” was a bit more profitable, that is what might have me get a pro involved. I have had consultations with a pro though (know a few accountants).
We were able to get an extra $1200 back from the new tax splitting credit.
I was going to defend the credit, but when I think about it, because of our graduated tax system, it’s a self capping credit. As more and more income is transferred to the spouse for the credit, their tax bracket would raise until both were in the highest bracket, then there would be no further benefit. So, I guess it just wasn’t in the budget.
I don’t understand why it’s capped at $2000 either. There seems to be too many limitations for the average Canadian family to take advantage of this tax credit.
Doesn’t the US have the concept of “Household income”? It annoys me when a good idea is done in partial measures….
I also heard comments about it being discriminating to women. Apparently, it’s asking us to go back into the kitchen and stay at home. Coming from a home where I’m the wife and the main breadwinner – I thought that the comment saying that it was discriminating itself. My take is that it was trying to give families an increased option to work less, pay less daycare costs and spend time with your family. That seems to be an issue these days. I recognize that $2000 a year might not be the final decision maker in that – but it’s better than a kick in the a$$.
Thank you for the female point of view. The argument that it is anti-women in the workforce had me scratching my head, but maybe I am not that smrt (sic).
First run through of Schedule 1-A showed ~$450 for us.
(Wife on maternity leave)