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Last updated: April 21 2015
Budget 2015: What’s in it For You
How did the Pre-Election Budget help you?
We've included several scenario's in this report to help you consider whether you were a winner.
Remember, many of the tax and benefit changes you’ll enjoy in 2015 and beyond were already introduced last fall. They include:
• UCCB - Universal Child Care Benefit. This benefit rises to $160/month for children under age 6, and there is now a new benefit of $60/month for children 6-17. This change is effective January 1,2015 but you’ll receive the money in a lump sum for the first half of the year in July. Happy vacationing. . .or better yet – top up that TFSA!
• The Non Refundable CTC - Child Tax Credit is now replaced by the UCCB; so it won’t appear on your 2015 tax return anymore.
• The Child Care Expense Deduction maximum claim increased by $1,000 to $8,000 per child under age 7, and to $5,000 for each child aged 7 to 16 as well as infirm dependent children over age 16, and to $11,000 for children who are eligible for the Disability Tax Credit. This will be claimed on your 2015 tax return
• Family Tax Cut Credit. Up to $2,000 for couples with children under 18, effective back in 2014. However the calculation changed in this budget to now include an optimization of transferred education credit amounts
• Children’s Fitness Tax Credit. This doubled to $1,000 in 2014, and is a refundable credit as of 2015.
• Family Caregiver Relief Benefit and Critical Injury Benefits now non-taxable to Veterans, as per March 2015 announcements.
The tax multiple benefits of the TFSA
The TFSA was introduced in the February 26, 2008, federal budget, made available to taxpayers who are resident in Canada and over the age of 17, for tax year 2009 and beyond. The original annual contribution limit to the TFSA was $5,000, and subsequently increased to $5,500 starting in 2013, due to indexing. As of 2015, the annual contribution limit is set at $10,000. Historical annual contribution levels are summarized below:
| Year |
TFSA New Contribution Room |
Accumulated Maximum Contribution Room |
Noteworthy |
|---|---|---|---|
| 2009 | $5,000 | $5,000 | |
| 2010 | $5,000 | $10,000 | |
| 2011 | $5,000 | $15,000 | |
| 2012 | $5,000 | $20,000 | |
| 2013 | $5,500 | $25,500 | Indexed increase |
| 2014 | $5,500 | $31,000 | |
| 2015 | $10,000 | $41,000 | Indexing stops |
| 2016 | $10,000 | $51,000 | |
| 2017 | $10,000 | $61,000 | |
| 2018 | $10,000 | $71,000 | And so on. . . |
The TFSA is a great savings option for people who do not have the required earned income for RRSP contribution purposes and therefore, have few opportunities for tax-sheltered retirement savings. This includes those in receipt of inactive income sources like pension income, investment income or employment insurance benefits.
In addition, the TFSA is a great savings option for people who cannot afford to lock up their savings in an RRSP (which penalizes withdrawals by taxing them). In fact, the TFSA provides anyone at lower income levels the flexibility of tax-free withdrawals if needed, with the advantage of saving for retirement tax free.
