Personal Finance

Tax saving tips -Is this true

  • Last Updated:
  • Feb 9th, 2017 9:38 pm
[OP]
Newbie
Oct 29, 2010
47 posts
146 upvotes
Ottawa, ON

Tax saving tips -Is this true

I found this video on Youtube and think this may benefit for others. However, I am not sure the example in the video.

Can a higher income spouse ($75,000 annual) transfer $30,000 to lower income spouse ($15,000 annual)? That is a big different to me. Please advice. Thanks

7 replies
Sr. Member
User avatar
Apr 22, 2014
523 posts
257 upvotes
Edmonton, AB
It was true for 2014 and 2015. The liberal gov't abolished it for 2016 and forward.
Deal Addict
Jan 2, 2015
1603 posts
603 upvotes
Toronto, ON
That video was talking about the 2015 tax year. The Family Tax Cut, as mentioned above, is no more. The UCCB is also no more. The child care deduction is still there, and the fitness credit is there, but has been reduced, and will be gone next year.
Deal Fanatic
User avatar
Dec 27, 2009
7333 posts
4570 upvotes
Victoria, BC
philland wrote: It was true for 2014 and 2015. The liberal gov't abolished it for 2016 and forward.
Not really. It wasn't true income splitting. It was only a tax credit and it was only good for a maximum savings of $2,000. Also, you had to have at least one child under 18 (not sure if OP has kids or not).
Sr. Member
User avatar
Apr 22, 2014
523 posts
257 upvotes
Edmonton, AB
Chickinvic wrote: Not really. It wasn't true income splitting. It was only a tax credit and it was only good for a maximum savings of $2,000. Also, you had to have at least one child under 18 (not sure if OP has kids or not).
Yeah, I just meant the video was true. I wasn't commenting on OP's situation.
[OP]
Newbie
Oct 29, 2010
47 posts
146 upvotes
Ottawa, ON
I do have a child under 18. The scenario perfectly fits my case. Too bad it is not valid for 2016. Not friendly for middle class.
Chickinvic wrote: Not really. It wasn't true income splitting. It was only a tax credit and it was only good for a maximum savings of $2,000. Also, you had to have at least one child under 18 (not sure if OP has kids or not).
Deal Addict
Jan 2, 2015
1603 posts
603 upvotes
Toronto, ON
ohce wrote: I do have a child under 18. The scenario perfectly fits my case. Too bad it is not valid for 2016. Not friendly for middle class.
That statement doesn't make a lot of sense to me (except the not valid for 2016 part). The FTC mainly worked out if you had one high income spouse and one spouse who didn't make any money (eg they were a homemaker), plus a kid. Middle class families with two working parents are more common, and they would get only a little bit of the money (much less than the $2,000 usually). It's pretty difficult for a single person to make enough money to support a spouse and one or more children unless said earner has a really high income, which is why such families aren't all that common.
Deal Addict
Jan 19, 2017
4665 posts
2699 upvotes
ohce wrote: I do have a child under 18. The scenario perfectly fits my case. Too bad it is not valid for 2016. Not friendly for middle class.
Were you in that situation in 2014 or 2015? If you were, that means you most likely didn't use the family credit.

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