Part 1: Personal Federal Taxes Changes

1.  Family Tax Cut Income Splitting for Couples

Harper Government announced on October 30, 2014 to introduce Family Tax Cut for eligible couples with minor children to have up to $2,000 non-refundable tax credit. It is done by transferring up to $50,000 of an individual's taxable income to the individual's eligible spouse or common-law partner. This measure was intended to take advantage of a spouse's lower income tax bracket. 

In Budget 2016, which received Royal Assent on December 15, 2016, eliminates the Family Tax Cut starting 2016 and subsequent years. 

In summary: 

Family Tax Cut (Income Splitting for couples) 

2015 - Up to Income $50,000 and the credit is capped at $2,000

2016 and subsequent years - Not available 

For more information, please contact us @ 778-374-1865 or info@theresalocpa.ca

Note:  All information relating to the tax cut above is available from CRA website.

By Theresa Lo, CPA, CGA

January 1, 2017

Revised on January 16, 2017