The Family Tax Cut Could Save you $2,000 in Tax

The Family Tax Cut

This new proposed tax break for young families could save you up to $2000 in tax. The basic concept is that a couple with young children may have one spouse in a higher tax bracket than the other spouse. That results in a higher tax paid by the family than the family with the same combined income but with both spouses in the same tax bracket.

To be eligible the individual must:

  • be a Canadian resident at the end of the taxation year
  • have an eligible relation for the year
  • have a child under the age of 18 at the end of the year who ordinarily reisdes throughout the taxation year with the individual or the individual’s eligible relation; and
  • not be confinred to a prison or similar instution for 90 days or more in the year.