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.
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 firstname.lastname@example.org
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
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Theresa Lo, CPA
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Burnaby, British Columbia