Family tax cut credit

About the Author: Wilson Wong & Associates, are Chartered Accountants in Calgary providing tax and accounting services to small and medium sized businesses and high networth individuals.

This new tax credit is pretty awesome for young families and it is applicable for the 2014 tax filing year. Are you prepared for this and do you know how to optimize this?

The credit is worth up to $2,000 to your family. You must have a child under 18 years old and both you and your spouse must be Canadian residents. If one spouse is at a higher tax bracket than the other spouse then this tax credit will kick in. The larger the income earning gap between the two spouses the more of that $2,000 tax credit you will be entitled to. The idea is to equalize the amount of income you each earn to bring you both down to the same lower tax bracket.

As you can see there's probably some "not so very fun math" involved in calculating the best tax credit your family should receive for this new family tax cut. Give us a call this tax season to get your tax prepared by us.

-Wilson Wong, CA

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