Major Changes in 2016 (for 2015 Tax Year)

 

Individuals and families

Universal child care benefit (UCCB) – The UCCB has increased to $160 per month for each qualified dependent under 6 years of age and there is a new benefit of $60 per month for each qualified dependent aged 6 through 17.

Child care expenses – The maximum limit per child has increased by $1,000.

Family caregiver amount for children under 18 years of age – The amount for children under 18 years of age has been eliminated and replaced by the enhanced universal child care benefit.

Family tax cut – For 2014 and later years, the calculation for the family tax cut has been revised to allow unused tuition, education, and textbook amounts transferred from a spouse or common-law partner.

Children’s fitness tax credit – The children’s fitness tax credit is now a refundable credit.

Interest and investments

Other deductions – The minimum amount that must be withdrawn each year from a registered retirement income fund (RRIF), variable benefit money purchase registered pension plan (RPP), and pooled registered pension plan (PRPP) has been reduced. If you have withdrawn more than the reduced 2015 minimum amount, all or part of the excess may be eligible to be re-contributed to a RRIF, RPP, account under a PRPP, or to buy a qualifying annuity and deducted on line 232.

Interest paid on your student loans – Interest paid on a Canada Apprentice Loan amount for registered Red Seal apprentices can be claimed on this line.

Investment tax credit – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2016.

Form T1135, Foreign Income Verification Statement – This form has changed to introduce a simplified reporting method for individuals who own specified foreign property with a total cost of less than $250,000 throughout the year.

Tax-free savings account (TFSA) – The TFSA annual contribution limit has increased to $10,000.

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