There is a new tax relief measures available to Canadians, that can be applied for the first time during the 2012 tax filing.
The Family Caregiver Tax Credit can be claimed for the first time by Canadians when filing their 2012 taxes. It is a 15 per cent non-refundable tax credit on an amount of $2,000 that provides tax relief to caregivers of infirm dependent relatives. This includes, for the first time, infirm spouses, common-law partners, and minor children.
There are a number of other new tax relief measures that were introduced by the Canadian government since 2006.
The Medical Expense Tax Credit recognizes the medical and disability-related costs incurred by caregivers, after the government removed the $10,000 limit on the amount of eligible expenses a caregiver can claim in respect of financially dependent relatives.
The First-Time Home Buyers’ Tax Credit assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees.
The Children’s Fitness Tax Credit is a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible physical activity programs.
The Children’s Arts Tax Credit is a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible artistic, cultural, or other programs.
The Textbook Tax Credit provides increased tax relief to students in addition to the Tuition and Education Tax Credits. Students must first claim their credit on their own returns, but may be able to transfer unused amounts to a parent, grandparent, spouse or common-law partner.
Other available tax reliefs include the Universal Child Care Benefit, the Tax-Free Savings Account, the Registered Disability Savings Plan and the Canadian Employment Credit.
For more information on the various tax measures supporting working Canadians and their families, go to http://www.cra-arc.gc.ca/tax savings/.
The Canada Revenue Agency encourages Canadians to take advantage of its fast, easy, and secure online services to file their tax and benefit returns.
By filing online and using direct deposit will, in most cases, help individuals receive a refund in as little as eight days, compared to four to six weeks for a paper return.