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.