TAX TIPS FOR FAMILIES WITH CHILDREN

Credit for being active: Although the Children’s Fitness Amount has been eliminated for 2017 and subsequent tax years, you may still be able to claim a Manitoba provincial fitness credit. Make sure you keep your receipts.

Artistic credit: Although the Children’s Art Credit has been eliminated for 2017 and subsequent tax years as well, you may still be able to claim a Manitoba provincial arts credit. Again, keep your receipts to make the claim.

Canada Child Benefit (CCB): Upon the birth of a child, parents should complete Form RC66, Canada Child Benefit Application and send it to the CRA. This form will register their child for the GST/HST Credit as well as the Canada Child Benefit. Note, the CCB replaces the previous Canada Child Tax Benefit as well as the Universal Child Care Benefit.

Child Care Expenses: The maximum dollar limits in the calculation of the deduction for child care expenses are as follows:
$8000 for children under 7;
$5,000 for children aged 7 to 16 and infirm children over 16;
$11,000 for disabled children

Use public transit: Taxpayers who use public transit can claim a non-refundable tax credit for their passes but only if purchased by June 2017. This includes passes purchased for dependent children under the age of 19. The passes have to be for a period of at least one month or weekly passes purchased over a period of four consecutive weeks. Electronic payment cards also qualify.

Save for future education: Designed to help save for a child’s post-secondary education, parents can make up to $50,000 RESP lifetime contribution. Canada Education Savings Grant (CESG) per year is a maximum of $500 depending on income and contributions.

Registered Disability Savings Plan: The RDSP is a savings plan that is intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC). There are great incentives provided to encourage people to open RDSPs like Canada Disability Savings Grant and the Canada Disability Savings Bond, which will pay matching grants depending on the beneficiary’s family income and the amount contributed.

Canada Learning Bond: Designed to help lower income families the Government provides $500 in a CLB at birth for children whose families are entitled to the National Child Benefit Supplement. As long as the family is still entitled to the supplement, they will receive an additional $100 CLB each year until the age of 15.

Get a SIN: Apply for a social insurance number upon a birth of the child. You will need this in order to open an RESP. It will also be required even for minor jobs such as babysitting or paper routes. Money earned from this type of employment qualifies for the calculation of an RRSP deduction limit.

Education Property Tax Credit: This credit is available to qualifying individuals who paid rent or property tax on a principal residence in Manitoba and have not received the advance. The basic credit for 2017 is $700 but certain conditions must be met. If your income is below a defined level, and you are a senior, you may qualify for an additional amount.

A tax professional at H&R Block Steinbach can talk about other credits and deductions that may affect you. Call 204-326-3783 to schedule an appointment.

Steinbachonline.com is Steinbach's only source for community news and information such as weather and classifieds.

Login