Filing taxes is something that I’ve always done myself, and to be honest I really rather enjoy it. While it does take a lot of work, it’s also a chance for me to see how well I’ve done financially in the previous year and how my business has continued to grow. But one of the things that does get difficult is keeping up with all the changing credits and benefits available, especially when doing an old-fashioned paper return.
That’s why this year I’m making the switch from paper to digital with help from TurboTax! While I’ve been tempted for years now to start filing my taxes online, the fact that I run a small business was always a deterrent because I wasn’t sure which digital filing method would work for me. Thankfully, TurboTax stepped in this year and helped me figure it out. Now I’ll be filing online with TurboTax Home & Business!
And as a mother with two minor children, I’ll also be taking advantage of some of the many credits and deductions available to families with children. These are five of the top tax benefits families with minor children should be investigating when filing their taxes this year:
1) Child Care Expenses Deduction
If you pay for childcare, you likely know how expensive it can be. That’s why the government offers a deduction each year for childcare expenses incurred so that parents can earn an income, go to school or conduct research. Starting in the 2015 tax year, the amount that families can claim has increased. Currently parents can claim up to $7000 per year for each child under seven years of age and $4000 per year for each child between seven and sixteen years of age. Both of those amounts have increased by $1000 for 2015.
2) Children’s Fitness Tax Credit
This credit is one that I’ve always loved since it promotes physical activity and allows children to pursue their love of a sport without putting too much financial strain on the parents. Now on your 2014 return, the amount that can be claimed has doubled! Parents can now claim up to $1000 per child for participation in eligible activities. Even better, starting in the 2015 tax year, the Children’s Fitness Tax Credit will be upgraded from a non-refundable tax credit to a refundable one. That means you could actually receive money back from the government for the fees you paid for your child’s sport.
3) Enhanced Universal Child Care Benefit
The 2014 tax year will be the last year that parents claim a Child Tax Credit on their income tax return. In 2015, the credit will be replaced with an enhanced Universal Child Care Benefit. The new UCCB provides $1920 per year for children under the age of six and $720 per year for children between six and seventeen years of age.
4) Family Tax Cut
The new Family Tax Cut, which is available for the 2014 tax year, has been one of the most hotly debated changes to the current income tax program. Essentially, in a family with minor children, the parent with a higher income can transfer up to $50,000 of eligible income to their spouse or common-law partner in order to move to a lower tax bracket and minimize income tax payments. While not all families will be able to benefit from the Family Tax Cut, it does have the potential to save eligible families up to $2000 per year on their taxes.
5) Children’s Arts Credit
For children that participate in artistic, cultural, recreational or developmental activities, parents can claim up to $500 per child in non-refundable tax credits. The credit is similar to the Children’s Fitness Tax Credit and allows children to participate in valuable and sometimes expensive activities such as music lessons, art classes and theatre groups while minimizing the cost for parents.
While I’ve taken advantage of many of these credits for families in the past tax years, I’m looking forward to the process being quicker and easier now thanks to TurboTax. The advantages of the TurboTax software go beyond quick and easy filing. The program also uses simple questions about your life to determine whether or not you’re eligible for various credits. In fact, TurboTax even offers a maximum refund guarantee! If you get a larger refund or a smaller amount owing using another tax preparation method, TurboTax will refund the price you paid for the program.
No matter how simple or complicated your tax return is for 2014, TurboTax can help you get it filed quickly and expertly while finding all the possible deductions and credits you’re entitled to claim. Follow the TurboTax blog for more expert advice on filing your return and get ready to breeze through your taxes this year!
KatM says
Some great tax filing tips for familes! Thanks so much!
barbara says
Not to familiar with how this all goes
Lindsay C says
I don’t have any children, so unfortunately these benefits don’t apply to me. However, I have been using TurboTax to do my taxes for the last 6 years and it is definitely easy to use and gives you tips along the way.
Shirley OFlynn says
Great tips! Thanks.
Kathleen L says
Thanks, always a great reminder for upcoming tax season
Cheryl (@loucheryl) says
Love the info about the Childs Art credit!
kristen visser says
amazing information!! totally bookmarking this for my husband to read too
kathy downey says
I don’t have any children, so these benefits don’t apply to me,but great for those who do
Kristine Ewald says
Great tips, gearing up for tax time
kelly young says
great tips happy about the Enhanced Universal Child Care Benefit
heidi c. says
So many people don’t seem to know about the Child Art and Physical activity credits. You can claim a good amount for both.
Doris Calvert says
Great tips for parents!
nicolthepickle says
I didn’t know about the Child Fitness Tax Credit. Thanks for the heads up.
Erika Letson says
Thanks for the great info!
Julie says
Have used Turbo tax for yrs, it’s a big help!
Cheryl says
We use Turbo Tax and it is great!!
crystal parsons says
I always do my own income tax but that new family tax credit has me stumped going to have to research before I do are income tax this year.
Alison Braidwood says
Great tips. I love TurboTax – I’ve used them for years.
michelle tremblett says
This is great !! I will be using Turbo Tax for my first time this year 🙂
angela m says
Very informative article. I love the Children’s Fitness Tax Credit..
Chandra Christine O'Connor says
a lot more to claim for kids then I thought
Wendy hutton says
great tips for families thanks
Lynda Cook says
I’m glad I have a tax lady that does all mine, she may be a bit costly but it’s well worth it, and I don’t have to worry about messing up!1
Julie F says
Our kids are all grown up but Turbo Tax is a great tool!
Carol B says
my kids are all grown and raising kids of their own, I am passing this information on to them. Thanks
Michelle Policelli says
great tips 🙂 thanks
loriag says
Always to important to know your tax benefits especially for young families. Thanks for sharing.
Cathy Jarolin says
This Post will Help a lot of Canadian Familys with their Taxes. Especially the ones that are into Sports and arts. I think its wonderful that they can claim the Money they had to use to keep their child in their Sports and art classes. I just finished up with my taxes yesterday.I use Turbo Tax. Its Fast and easy and I really like it. Thankyou for sharing!
Amy Lovell says
This sounds awesome! Usualkly I do my taxes online with ufile but think I may go elsewhere this year to get them done!
Sherry K says
Love Turbo Tax – The questions really make sure that you don’t miss anything.
Wanda Tracey says
Thank you so much for sharing these great tax tips with us.This is good information to know.
Stephanie LaPlante says
Thanks for these tips! Very helpful information.
Anna W says
We always use Turbo Tax, we have never had any problems filing with it.
Judy Cowan says
Great tips! We use Turbo Tax every year to do our own taxes.
Cheryl says
This is so great to read! I am glad uccb was extended for the older children
Lori Jackson says
So informative…really glad I read it!
Kiersten says
great advice, thanks!
Vesper Meikle says
great tips if you have a family but we have done our own as there is only the 2 of us
Charlene A. says
Some great increases for families this tax year. Thanks for the rundown.
Sneakyliz says
Awesome tips! And seems fairly simple too!
MOHAMMAD ANJUM says
AWESOME TIP
Lauren says
Thanks so much for the tips. I used Turbo Tax last year but got nervous about how accurate it was so I sucked it up and went to an accountant. Turns out the accountant got the same $$ amount I did with TurboTax… to the penny!!
Aliya D says
Great tips if I had children of my own… I have nephews which I help support, but cannot take advantage of any of the deductions.
JaimeeM says
So great to know! Im looking forward to this years tax return, fixing up the house!
nikki robak says
my kids are too old for these deductions to be any good to me
Angela Mitchell says
We’ve been using Turbo Tax for years. It’s so convenient!
Fan R says
Tax season is here.
Elva Roberts says
Thank you for informing parents of the top five tax benefits for Canadian Families. I am not sure if parents knew all of them but I did not.
DarW says
I don’t mind doing my taxes every year. I use another program (Free!) But these days all online programs make it super easy to do your taxes.
Cairine says
I didn’t know you could get credit for children in sports.