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How the new federal taxes changes impact your family
Maya Wariyar
Agenda
oGo over 4 major tax changes that will impact families
oDiscuss two examples
oWhat can you do with the tax savings
oTrivia plus prizes
Cost of raising a child
MATERNITY LEAVE- PAY TAXES
LOST WAGES
MANDATORY EXPENSES
ONGOING EXPENSES
Where does the money go?Taxes
Ultilites/Bills
Rent/Mortgage
Food
Fun expenses: Travel , Eating out
“Our Government is focused on helping hard-working Canadian families make ends meet, by making important priorities like child care and after-school sports more affordable. Under this plan, every family with children will have more money in their pockets, to spend on their priorities as a family.”– Prime Minister Stephen Harper
Trivia QuestionHow many roses and of which colour is the traditional romantic gift?
A. 9, White
B. 2, Yellow
C. 7, Pink
D. 12, Red
Family Tax Cut NEW Effective Tax year 2014
Universal Child Care Benefit
ENHANCED
Replacement of the Child Tax Credit
Effective Tax year 2015
Child Care Expenses Deduction
INCREASED Effective 2015 Tax year
Children’s Fitness Tax Credit
INCREASED Effective Tax year 2014
Is it better to get a tax credit or a tax deduction?
Enhanced Universal Child Care Benefit
Eligibility
Enhanced Universal Child Care BenefitIncrease the monthly benefit by $60
0
100
200
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500
600
Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
Sep
Oct
No
v
Dec
Am
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nt
Month
Children under that Age of 6
Children between ages six and seventeen
0
100
200
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400
500
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
Am
ou
nt
Month
You do not need to apply to receive increased amounts
What can you do with this monthly income?Child’s education
Daily living expenses
Child extracurricular expenses
Trivia QuestionWhat falling object is said to have inspired Isaac Newton's theories about gravity?
A. Orange
B. Plum
C. Pineapple
D. Apple
Child Care Expenses Deduction
Age PreviousDeduction
NewProposal
Age less than 7 $7,000 $8,000
Age 7 to 16 $4,000 $5,000
Disability Tax Credit
$10,000 $11,000
What does the 'e' of e-mail stand for?
Trivia QuestionWhat does the 'e' of e-mail stand for?
A. Efficient
B. Easy
C. Empty
D. Electronic
FAMILY TAX CUT
Transfer up to $50,000
Example Two earner coupleTwo Children
PAT EARNS $60,000
Marginal tax rate: 22%
CHRIS EARNS $12,000
Marginal Tax Rate: 15%
Non refundable Tax Credit up to $2000
Who benefitsOnly families with children under 18 with two parents in different tax brackets would benefit.
Children's Fitness Tax Credit
Children's Fitness Tax Credit
0 200 400 600 800 1000 1200
Prior to Tax year 2014
Tax year 2014 and later
Increase in Children’s Fitness Tax Credit
Trivia QuestionWhat is the only continent without a desert?
A. Africa
B. South America
C. Australia
D. Europe
Example-Two earner coupleKelly earns $95,000 and Dale earns $25,000
Two children ages 7 and 3
The younger child attends full-time daycare and the older one attends summer camp and after-school care.
Benefits of Tax changesFamily Tax Cut : $2000 tax relief
Universal Child Care Benefit payments of $220 monthly (1,440 increase in benefits)
$2000 increase in deduction for Child Care expenses
Example-One Earner CoupleIsabelle and Marc are a one-earner couple earning $60,000.
They have two children aged 2 and 4.
Example One-Earner Couple
Isabelle and Marc are a one-earner couple earning $60,000
They have two children aged 2 and 4.
Benefits of Tax ChangesThe Universal Child Care Benefit enhancement: $$320
Family Tax Cut: Transfer the $30, 000 Income
Trivia QuestionWhat kind of electricity can be produced by combing your hair?
Less taxes to pay
Means more money to secure your future!
Use the money wisely!Understand your regular expenses
Understand the Gap
Make it happen
Use your tax reductions to secure your family’s future
Pay off your debts
Increase Savings
The power of compound interest
10,000 Initial MoneyAnnual Compounded Interest 2.5%
End of Year 1 $250
End of Year 2 $256
End of Year 3 $262
Total Interest $768
This presentation is for information purposes only; anyone wishing to act on the information presented should consult their advisor
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