How do I take advantage of the ' Family Tax Cut' (Income Splitting for 2015)?

1. "Filing joint" vs. "filing single" is a US thing, not Canadian. All Canadians file individual returns, but you're supposed to include some of your spouse's income info, particularly when there are credits affected by Household Income (GST, provincial benefit programs, child benefits, etc.)

2. "Income splitting" as people call it is officially the "Family Tax Cut", first implemented for the 2014 tax year. There's a schedule to complete, (Form 5000, Schedule 1-A) http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1a/README.html Your income tax software can also complete this form.

3. You have to have a child under the age of 18 that ordinarily lives with you and your spouse

4. It doesn't actually "split income," both of your taxable incomes stay the same. One of you (the higher earner) gets a credit for the result of the calculation.

Tax website/software will do it all for you, so long as you link to your wife's return (which you should've done anyway always)

You can estimate online
http://incomesplittingcanada.com/

but max is $2000 credit anyway

Are you talking about family income splitting (the Family Tax Cut) or Pension Income Splitting for seniors?

Family income splitting is being killed, but seniors income splitting is here to stay.

You need to verify if you can even benefit from it to begin with. If you're in the same tax bracket, there's no savings.

To really maximize, you need to be in completely different brackets (eg one stay at home parent).

Woodbridge905 wrote: ↑Ok so it is now clear that the liberal government will cancel income splitting starting in 2016, which means we can still take advantage of it for this year (2015)

And if we do file together, and assuming we are getting a return, do we get one combined return, or does each one of us still get a separate return from CRA?

I assume you mean refund when write return. You & your spouse (and children if necessary) will file separate income returns, but they are tied together by the SIN of each. There will be separate refunds or tax owing, as confirmed or reassessed by CRA, including the family tax credit that ends this tax year.

Based on the throne speech I think it was clear that income splitting will be in place for the 2015 tax year. I hope the fiberals revisit their decision and keep this in place for the long term.

Woodbridge905 wrote: ↑ My question is, assuming it applies to me and my wife, how would I go about claiming it?

Step 1: Have a kid under aged 18, as of Dec 31, 2015.
Step 2: You and your wife simply file your taxes using any tax software, and it will automatically calculate the family tax cut you are entitled to.

peelhic wrote: ↑Based on the throne speech I think it was clear that income splitting will be in place for the 2015 tax year. I hope the fiberals revisit their decision and keep this in place for the long term.

It's in place for 2015 (so you will see it when you file 2015 taxes around March 2016). Liberals will not revisit it, it's practically guaranteed to be gone for 2016 tax year.