Tax breaks for parents vary

New credit hands up to $2,000 to some families, zero to others.

Deanne Gage 13 January, 2015 | 6:00PM

Tax breaks for parents are all over the map, from benefits, deductions and credits. Before tax season begins, review all the entitlements to lower your family tax bill.

This year, many tax changes were announced and they directly affect parents. The biggest new initiative, though it won't affect most families, is what the federal government has billed as the "family tax cut." Its beneficiaries will be families with one parent having a much higher income than the other parent. Accomplished via tax credits, the targeted tax break starts this month, effective for the 2014 tax year.

A higher-earning spouse can transfer up to $50,000 to a lower-earning spouse or common-law partner, provided they have a child under the age of majority.

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About Author

Deanne Gage

Deanne Gage  Deanne Gage is a Toronto-based writer who has specialized in personal-finance issues since 1999. A recipient of several journalism awards, including one from the Investment Funds Institute of Canada, she is also a former editor of Advisor's Edge and Advisor.ca. She can be reached at deannegage@gmail.com.

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