There is always a populist element in every budget--both positive and negative. It is, after all, a political statement as well as an economic one, and Flaherty's budget is no different (particularly since there's an election coming up in 2015.) There was the usual 'sin tax' on cigarettes (the negative), and a plethora of child-tax benefits (the positive).
Now bearing in mind that I am a single person, a senior with no dependants, but paying 18% of my income in income tax. So, here's what the budget DIDN'T do for me--and countless other singles with no dependants. Remember, too, that this is in addition to the child benefits at the provincial level.
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1. Eligible
dependent: If you’re a single parent raising kids, you can qualify for a
$10,320 credit that becomes a tax savings of around $1,500. The credit is designed to give lone parents a tax break
similar to what married couples get.
2. Children’s arts credit: Got a budding da Vinci in your brood? Creativity
pays! You’re eligible for a $500 per
child credit for a variety of artistic, cultural, recreational and
developmental activities. So now you can afford to buy little Sophie some paper
and an easel, rather than have her do her own interpretation of the Sistine
Chapel on your walls.
3. Education
tax credit: Full-time and part-time students are eligible for a basic
credit, and since they usually don’t have big incomes, most of the credit ($5,000 minus the amount the student
claimed on her tax return) can be transferred to parents. The rules apply to
tuition, textbook and other education expenses (sadly, though, you cannot claim
for all the beer your student consumed while at weekend “study sessions”).
4. Transit
pass credit: Tired of your kids borrowing the car and returning it with an
empty gas tank and a few extra dents? Tell ’em to take the bus from now on!
Monthly and yearly passes for your dependent children up to age 19 can be
claimed. Passes for streetcars, subways, commuter trains and local ferries
count too. (Just don’t try to claim ferry fare if you live in a land-locked
city.)
5. Universal
Child Care Benefit: Here’s some more cash you may qualify for: $100 per month per child under the age
of 6. The benefit is designed to help families “as they try to balance work and
family life,” say the feds, “by supporting their child care choices through
direct financial support.” You know what would really help us balance work and
children? Less of each, and more cash. Hey, we can dream.
6. First
Time Home Buyers Tax Credit: Not everyone can be like The Old Woman Who
Lived in a Shoe (and besides, have you seen the price of shoes these days?). So
here’s what to do if you need more space now that kids are here (or on the
way): if this is your first home purchase, claim the $5,000 non-refundable tax credit.
7. Children’s
fitness credit: There’s only one Sidney Crosby, but who’s to say your
little hockey whiz can’t be the next NHL superstar? Signing your under-16 kids
up for organized physical activity such as hockey qualifies you for a credit of
up to $500 in costs per child. The
feds created this break to promote physical fitness and reduce future health
care costs. Your bigger incentive? A cut of the next multi-million-dollar
Sidney Crosby-like salary!
8. Family
caregiver tax credit: We’re keeping our fingers crossed that you never need
to apply for this one. It provides a $2,000
non-refundable credit for parents who provide ongoing care for their minor
child with a physical or mental illness. You’ll need to provide a letter from a
medical doctor stating when the impairment began and how long it is expected to
last.
9. Child
tax credit: For every child you have under age 18 (19 in Saskatchewan) the
federal government allows a credit. It varies by year; in 2012, it was $2,191. Remember, though, that it’s a
credit, not a straight deduction. Do the math and you’ll see that it translates
into a tax savings of about $329 per
kid – or about what you spend on tutors so Sandy can get through math at school
without the help of his iPhone.
10. Child
care expenses: This deduction covers costs such as daycare, summer camps,
sitters, after-school programs and boarding schools. It can even include the
expense of advertising to find child care. You can claim for a child up to 16,
as long as the person providing the care isn’t a blood relative (i.e. you can’t
pay your spouse to look after your own children, even though he may want danger
pay for spending the day cooped up with them in the
11. Canadian
Child Tax Benefit: Yep, the feds actually pay us for reproducing. This
tax-free monthly payment arrives in your bank account every month until your
offspring turn 18. The basic benefit is $1,433 ($119.41 a month) but the size
of the cheque you get depends on your income, what province you live in, and
the number of kids you have. At that rate, not even Octomom would get rich.
12. Adoption
tax credit: If you incur out of pocket expenses while adopting a child,
you’re eligible for a tax credit. Costs of up to $11,440 per child can be covered. If the child has special needs
you can claim the full amount; otherwise, how much you save depends on how much
you spend. Whatever the amount, the real benefit comes from giving someone a
new family life – and that’s priceless.
