Taxes

New Tax Credits And The Federal Budget

How will the average Canadian taxpayer benefit?

As the new government gets to work in Ottawa, the tax measures proposed in the March budget should soon be passed. Here are some of the changes you can expect to see on your tax return soon:

Children Arts Credit: Parents with children under 16 who are enrolled in artistic, cultural, recreational or developmental programs will be eligible to claim up to $500 in registration or membership fees. This includes things like scouting, credits, painting, pottery and tutoring. If a child is disabled, there is an additional $500 supplement.

Examination Fees: Fees of $100 or more paid to education institutions, professional associations, provincial ministries or other similar institutions may now be eligible to be claimed as tuition. So if you need the exam to obtain a professional status or be licensed, you may be able to claim it.

Students studying abroad: A change from 13 consecutive weeks of courses to only three weeks will mean more students studying abroad will qualify for the tuition credit.

ecoENERGY Grants: This popular program will be brought back for at least one more year. The program provides grants for renovations to improve the energy efficient of a residence.

Family Caregiver Tax Credit: A $2,000 supplementary amount will be provided for dependants with a mental or physical infirmity. This credit will be addition to any spousal amounts or caregiver credits the taxpayer can already claim but does not take effect until 2012.

Medical expenses for other dependants: The $10,000 maximum for dependants other than spouses, common-law partners or minor children will be eliminated.

Volunteer Firefighters Credit: This new non-refundable credit will be available to taxpayers who perform at least 200 hours of volunteer firefighting services for one or more fire departments. Written certification from the chief or delegated official must be obtained before you can make the claim. Based on an amount of $3,000, it will translate into tax savings of $450.

 

 

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