Income Splitting Expanded for 2014

The government recently announced new legislation that will expand income splitting to families with children.

Back in 2007, the government announced pension income splitting that allowed those who have certain pension income to split up to half of the pension income with their spouse or common law partner.

On October 31, 2014, the government announced the new Family Tax Cut as well as other changes to reduce the tax burden of families with children.

Family Tax Cut – Income Splitting

The new Family Tax Cut permits limited amount of income splitting between spouses. Effective for the 2014 tax year, the rules allow the transfer of up to $50,000 of taxable income from one spouse to the other. The couple must have children under the age of 18 and the maximum tax relief is capped at $2,000.

Other Tax Benefits

Other benefits announced include:

  • An increase in the Universal Child Care (UCCB) payments from $100 per month to $160,
  • Expanding the UCCB program that is currently only available when children are aged 6 or under to provide a benefit of $60 per child aged 6 to $17, and
  • Increasing the child care deduction by $1,000 to $8,000 (long overdue in my opinion!).

During tax filing, we will help you minimize your tax by taking full advantage of the various programs available.

If you would like to take advantage of our tax and financial planning services before or after tax filing season, give us a call at 289-288-1206 to arrange an appointment.

Dean Paley

A graduate of Simon Fraser University, Dean started and operated an independent painting company while perusing a degree at SFU. After graduating from Simon Fraser, Dean entered the Certified General Accountants Program of Professional studies where he obtained the professional CGA designation. After a number of successful years as the head of finance for the Canadian operations in a global financial services firm, Dean moved into a marketing role and established and launched a tax, estate and financial planning support department and service to advisors and clients. During this time Dean successfully obtained the Certified Financial Planner (CFP) designation. Dean has been a member of the Canadian Forces Reserve spanning three decades serving in the Royal Westminster Regiment (B.C.), the Military Police and later as a commissioned officer in the Cadet Instructors Cadre in Hamilton Ontario. Dean Paley CGA CFP has been interviewed and quoted in major media such as the National Post, Financial Post, Toronto Star, Canadian Business, Money Sense and Investment Executive. Dean is married to his lovely wife Deborah and has four lovely children.