Canadian Immigration Attention! It is that time of year again for tax season, and this year there will be three major changes in the tax policy: the elimination of the child care tax credit, adjustments to the maximum benefits of the Universal Child Care Benefit program, and the simplification of the process for declaring overseas assets. Additionally, the Canada Revenue Agency encourages the public to adopt electronic tax filing, and immigrant friends can choose to log directly into the official website of the tax agency to file their taxes.
Change One: Elimination of the Child Care Tax Credit
According to the Sing Tao Daily, the most significant change for general families when filing the 2015 income tax this year is related to adjustments in child-related items. "In the past, each child had a tax exemption of $2,000, but this exemption is no longer available for the 2015 tax year, although the $2,000 exemption for children with disabilities remains. The Canada Revenue Agency has also eliminated the tax credit for children's recreational activities, replacing it with a direct tax refund. Regardless of your family's income or whether you have income, your tax refund will be directly increased. Additionally, sports equipment can be claimed for a 50% tax refund, up to a maximum of $500."
Change Two: Adjustment of the Maximum Benefits of the Universal Child Care Benefit Program
According to the official website of the Canada Revenue Agency, another major change in this year’s tax filing is that the monthly subsidy for children under six who qualify for the Universal Child Care Benefit program will increase by $160; for children aged 6 to 17, it will increase by $60 per month. Additionally, the maximum deduction for child care expenses has also been raised by $1,000.
Change Three: Simplification of the Process for Declaring Overseas Assets
This year, the process for declaring overseas assets has also been simplified. Overseas assets exceeding $100,000 must be declared; if overseas assets are less than $250,000, there is no need to fill in specific information for each overseas asset, only the asset category needs to be selected. However, if overseas assets exceed $250,000, each asset must still be declared individually.
Worldway Immigration Reminder: The various tax adjustment indicators for 2016 can be found on the official website of the Canada Revenue Agency, and should be carefully reviewed before filing taxes. As a leading institution in the immigration industry with 18 years of experience, Worldway Immigration has a comprehensive customer service team dedicated to settling in, providing professional and attentive services that permeate every small detail of the client’s immigration process to Canada, striving to help new immigrant friends integrate into local life as quickly as possible. For more inquiries, please call: 400-138-2929
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