Tax Credits & Benefits Flashcards
What is the CCB?
Qualifying families can receive tax-free monthly payments from the government to help manage some of the costs of raising children.
Monthly CCB payments are based on:
The number of children in your care.
The age of the children.
Your marital status.
Your adjusted family net income (AFNI) from the previous year’s tax return.
The CCB is calculated as follows.
$7,787 per year ($648.91 per month) for each eligible child under the age of 6
$6,570 per year ($547.50 per month) for each eligible child aged 6 to 17
These amounts start being reduced when the adjusted family net income (AFNI) is over $36,502. The reduction is calculated as follows:
For families with one eligible child:
-the reduction is 7% of the amount of AFNI greater than $36,502 up to $79,087
- for income greater than $79,087, the reduction is $2,981 plus 3.2% of AFNI greater than $79,087
What is the DTC?
The DTC helps reduce the income tax that people with physical or mental impairments, or their supporting family members, may have to pay. It aims to offset some of the costs related to the impairment.
Who is eligible for the DTC?
You may be eligible for the DTC if a medical practitioner certifies that you have a severe and prolonged impairment in 1 of the categories, significant limitations in 2 or more categories, or receive therapy to support a vital function.
Can the DTC be transferred?
Yes.
If the person with the impairment does not need the entire disability amount to reduce their income tax, they may transfer some or all of the disability amount to the supporting family member who is identified on the DTC application form.
A supporting family member is someone who the person with the impairment depends on for at least 1 of the basic necessities of life (food, shelter, and clothing).
The family member must be 1 of the following:
-their spouse or common-law partner
-their child or grandchild
-their parent, grandparent, brother, sister, uncle, aunt, niece, or nephew
-a child or grandchild of their spouse or common-law partner
-a parent, grandparent, brother, sister, uncle, aunt, niece, or nephew of their spouse or common-law partner
What is the CCC?
The Canada caregiver credit (CCC) is a non-refundable tax credit that may be available to support a spouse or common-law partner, or a dependant with a physical or mental impairment.
What is the tax credit on pension income?
15% of eligible pension income (maximum credit is CAD 300).
What is the tax credit on tuition?
15% of eligible fees (minimum CAD 100 per institution). Unused credits can be carried forward indefinitely.
What is the tax credit on student loans?
15% of the interest paid on loans under the Canada Student Loans Act and provincial student loan programs. Unused credits can be carried forward five years.
What is the tax credit on medical expenses?
15% of amount by which eligible expenses exceed lesser of CAD 2,759 (1) and 3% of net income (generally, expenses for any 12-month period ending in the year can be claimed).
What is the tax credit on adoption?
15% of eligible adoption expenses (maximum credit is CAD 2,860). Must be claimed in the year the adoption period ends
What is the tax credit on charitable donations?
15% of the first CAD 200 and the excess is at either 29% or 33%. Eligible donations are generally limited to 75% of net income. Unused donations can be carried forward five years.
In the year of death or the year preceding death, 100% of net income can be claimed as donations.
What is the tax credit on Government pension plans and employment insurance plan contributions?
15% of the lesser of the base (non-enhanced) amount payable and the required base premiums for the year (maximum credit is CAD 640; in Quebec, CAD 652).
What is the tax credit on employment income?
15% of employment income (maximum credit is CAD 215).
When are you ineligible for the HST/GST tax credit?
- You are not a resident of Canada for income tax purposes.
-You do not have to pay tax in Canada because you are an officer or servant of another country (such as a diplomat) or a family member or employee of such a person.
-You are confined to a prison or similar institution for a period of at least 90 consecutive days.
- The recipient is deceased
