One of the major themes of this year's Federal Budget was
the "Strengthening of the Middle Class." Along with tax
rate cuts for the second lowest tax bracket and the creation of a
new top tax bracket for the wealthiest Canadians, there have been
significant changes to the various tax credits and allowances
available to families. Gone or being phased out are:
Family tax cut. 2015 was the final year for
which families could claim this tax credit, which allowed a
higher-income spouse to notionally transfer up to $50,000 of
taxable income to his/her spouse resulting in tax savings of up to
$2,000.
Children's fitness and arts tax credits.
2016 is the last year for which these credits can be claimed.
Furthermore, the maximum eligible amounts for these credits have
been reduced to $500 for the fitness credit and $250 for the arts
credit.
