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Padgett Business Services Blog

Year End Tax Letter 2014

August 11, 2015 - 0

Dear Clients and Friends,

 

Another tax season is upon us and I look forward to seeing everyone again and hearing how the year went.   Since there are quite a number of new things this year, why don’t we get right to the fun part of our letter.

 

The deadline for RRSP contributions to be recognized on your 2014 tax return is Monday, March 2, 2015.  Your 2013 income tax Notice of Assessment issued by the C.R.A. specifies your 2014 contribution limit.  Be careful of your contribution limit since penalties apply if you over-contribute by more than $2,000.

 

The tax filing deadline this year is Thursday, April 30.  In situations where at least one spouse has a business that is not incorporated, the deadline for both spouses becomes Monday, June 15 although taxes owing must be paid by Thursday, April 30.

 

If you have any assets in another country (personal use vacation property is excluded), you must report them to the CRA this year – make sure to mention this to me early so we can get on top of the somewhat onerous forms.

 

The TFSA limit is $5,500 for 2014.  The total lifetime cumulative limit is $36,500.

 

The Family Tax Cut, effective for taxation years 2014 and later, allows couples with children under the age of 18 to notionally split the income of the spouse with higher earnings to the lower income spouse in the taxation year.  The tax credit can be used by either spouse and may not exceed $2,000.

 

The government proposes to increase the current monthly Enhanced Universal Child Care Benefit ‘UCCB’, effective January 1 2015 for children under 6 from $100 to $160 and to introduce a $60 per month benefit for children age 6 to 17.  This would provide an additional $720 per year for each child under 18.   The increased payments begin in July of 2015.  The non-refundable Child Tax Credit is being phased out in 2015.  There are no plans to change the monthly Canada Child Tax Benefit.

 

On October 9, 2014 the government announced that the Children’s Fitness Credit for 2014 will be doubled to $1,000 for each child under 16. The government also proposes that the Child Care Expense Deduction be increased by $1,000 per child across all age brackets in 2015.

 

And remember, although my office prepares your tax return, you are responsible for and certify the information reported on it.

 

Yours Truly,

Carl O’Connell   CPA CA

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