Good News For Canadian Taxpayers! The Federal Budget Makes Only Minor Changes To Taxes
As many Canadian taxpayers know, Canada's federal budget for the 2010-2011 fiscal year was presented to the House of Commons by Finance Minister Jim Flaherty on March 4, 2010. But even if you did not know it no, do not worry - the budget does not change your taxes too. Canadians still need to know some minor tax changes by 2010.
The budget can bring good news to some parents. It provides that parents who have shared custody of their children should be able to share the benefits that the Canada Revenue Agency offers to legal guardians. Before, a parent can make these claims. Now parents can share the child tax benefit, the universal child care benefit and the GST child benefit.
It can also be good news for parents that universal service child benefits have been changed. Previously, these benefits were taxable for the spouse with the lowest income. But the new arrangement is more favorable to single parents. The federal budget proposes that single-parent families receiving the UCCB may elect to exclude from income and add it to children's income - which will generally be too small a tax amount.
Similar parents of students and learners in life may also be interested in knowing that those who have received a research grant are exempt from taxes only if their studies are accompanied by a diploma. Research students also need to know that they may be better able to claim education amounts for all classes leading to a degree.
In general, it may be wise for student grant holders to do their homework on the impact of the federal budget on their taxes. In addition to the more severe restrictions on the need to claim a certain number of degrees, the number of hours spent in school has increased. Part-time students will be charged more than the amount of their scholarship funds.
Homeowners who hope to continue renovating their homes also have bad news. The federal government has decided not to extend the Home Renovation Tax Credit Program. This means that you will have to pay all home renovation costs incurred as of February 1st. Home-only updates, which can be reported on 2009 tax returns, are those made between January 27, 2009 and February 1, 2010.
In addition, the budget published once - sensitivity to tax claims for surgery. If you have undergone a plastic operation for purely cosmetic reasons, medical expenses incurred after March 4, 2010 will no longer be claimable.
Taxpayers will have to consider some minor changes, but no new tax has been announced in the federal budget.
The budget can bring good news to some parents. It provides that parents who have shared custody of their children should be able to share the benefits that the Canada Revenue Agency offers to legal guardians. Before, a parent can make these claims. Now parents can share the child tax benefit, the universal child care benefit and the GST child benefit.
It can also be good news for parents that universal service child benefits have been changed. Previously, these benefits were taxable for the spouse with the lowest income. But the new arrangement is more favorable to single parents. The federal budget proposes that single-parent families receiving the UCCB may elect to exclude from income and add it to children's income - which will generally be too small a tax amount.
Similar parents of students and learners in life may also be interested in knowing that those who have received a research grant are exempt from taxes only if their studies are accompanied by a diploma. Research students also need to know that they may be better able to claim education amounts for all classes leading to a degree.
In general, it may be wise for student grant holders to do their homework on the impact of the federal budget on their taxes. In addition to the more severe restrictions on the need to claim a certain number of degrees, the number of hours spent in school has increased. Part-time students will be charged more than the amount of their scholarship funds.
Homeowners who hope to continue renovating their homes also have bad news. The federal government has decided not to extend the Home Renovation Tax Credit Program. This means that you will have to pay all home renovation costs incurred as of February 1st. Home-only updates, which can be reported on 2009 tax returns, are those made between January 27, 2009 and February 1, 2010.
In addition, the budget published once - sensitivity to tax claims for surgery. If you have undergone a plastic operation for purely cosmetic reasons, medical expenses incurred after March 4, 2010 will no longer be claimable.
Taxpayers will have to consider some minor changes, but no new tax has been announced in the federal budget.
