The Good Life, Wealth
It’s getting close to tax time, so here’s a reminder of some changes in the last budget that could save you money when you file for 2007.
Families will benefit from a new $2,000 child amount for each child under the age of 18. This will result in a federal tax saving of $300 per child.
This is also the first year parents can claim the new Children’s Fitness Amount of up up to $500 for a child in an eligible program. The saving will be $75 per child. Also new in 2007 is an increase to the spouse or common-law partner amount. The government increased it to $9,600. If a spouse earns no income, the tax savings will be $265. Single parent families will get the same break for an eligible dependant.
There’s also great savings for people over 65. The government introduced pension income splitting between spouses, and any type or income that qualifies for the pension income amount qualifies for income splitting. The government estimates that all the eligible people will realize about $1 billion in tax relief. Finally the government increased the age limit for holding RRSPs from 69 to 71.