Comments on: Spousal Amount, UCCB, and CCTB! http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: Income Splitting Options | Million Dollar Journey http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-85144 Income Splitting Options | Million Dollar Journey Mon, 01 Jun 2009 10:31:14 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-85144 [...] family has a single earner making $100k would pay approximately $26.5k income tax (including spousal credit). Another family with both spouses making $50k each would pay a total of approximately $19.4k [...]

[...] family has a single earner making $100k would pay approximately $26.5k income tax (including spousal credit). Another family with both spouses making $50k each would pay a total of approximately $19.4k [...]

]]> By: Neal http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-81401 Neal Thu, 07 May 2009 13:17:43 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-81401 Does anyone know if the higher income earner in a divorced (shared custody) family can claim the child as a dependant, even if the spouse is the recipient of the Universal Child Care Benefit? Thanks in advance for the insight! Does anyone know if the higher income earner in a divorced (shared custody) family can claim the child as a dependant, even if the spouse is the recipient of the Universal Child Care Benefit? Thanks in advance for the insight!

]]> By: George http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-79423 George Sat, 25 Apr 2009 12:24:22 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-79423 Jo: it's a bad plan. As FT notes, you'll be spending an extra $1540 on child care (because of the lost tax deduction) in exchange for a "savings" of $770. On top of that, you'll be assisting your child care provider in committing tax fraud. If I were you, I'd look for alternate child care. $700/mo sounds quite high to me for a dayhome - around here a dayhome spot through a licensed agency (one that is 100% legitimate and legal) costs $500-$600. Jo: it’s a bad plan. As FT notes, you’ll be spending an extra $1540 on child care (because of the lost tax deduction) in exchange for a “savings” of $770. On top of that, you’ll be assisting your child care provider in committing tax fraud.

If I were you, I’d look for alternate child care. $700/mo sounds quite high to me for a dayhome – around here a dayhome spot through a licensed agency (one that is 100% legitimate and legal) costs $500-$600.

]]> By: FrugalTrader http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-79412 FrugalTrader Sat, 25 Apr 2009 10:33:53 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-79412 Jo, providing that the lower income spouse is well into the 22% MTR, the $7000 expense will result in a $1540 tax return. You'll have to weigh the $1540 against the savings by paying cash. It tax return may be lower depending on if the $7k drops you into the next bracket below. Jo, providing that the lower income spouse is well into the 22% MTR, the $7000 expense will result in a $1540 tax return. You’ll have to weigh the $1540 against the savings by paying cash.

It tax return may be lower depending on if the $7k drops you into the next bracket below.

]]> By: Jo http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-79394 Jo Sat, 25 Apr 2009 07:50:29 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-79394 Hi I have a question and need help. We will be putting my son in a home daycare next week, paying cash, no receipts. Daycare provider said that she will not charge me for her sick days, stat holidays and 3 weeks vacation if I pay her cash. So for this remainder of tax year, I will be saving at least $770 in child care. I will be paying her $700/mth (which is $35/day). Is this worth it for us? The lower income spouse has a marginal rate in 2008 of 22%. Please help as I don't want to make a mistake. Hi I have a question and need help.

We will be putting my son in a home daycare next week, paying cash, no receipts.
Daycare provider said that she will not charge me for her sick days, stat holidays and 3 weeks vacation if I pay her cash. So for this remainder of tax year, I will be saving at least $770 in child care.

I will be paying her $700/mth (which is $35/day).

Is this worth it for us? The lower income spouse has a marginal rate in 2008 of 22%.

Please help as I don’t want to make a mistake.

]]> By: George http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-73240 George Thu, 12 Mar 2009 11:33:45 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-73240 @Andy: It depends on whether it's the rent you're paying (i.e. for the place you live) or rental income (i.e. renters who pay you so that they can live in a place that you own). Rent that you pay for your shelter doesn't have any impact on your taxes, so it doesn't get reported anywhere. If it's rental income you're asking about, see the CRA web site, as there is plenty of info on the topic: http://www.cra-arc.gc.ca/E/pub/tg/t4036/ @Andy: It depends on whether it’s the rent you’re paying (i.e. for the place you live) or rental income (i.e. renters who pay you so that they can live in a place that you own).

Rent that you pay for your shelter doesn’t have any impact on your taxes, so it doesn’t get reported anywhere. If it’s rental income you’re asking about, see the CRA web site, as there is plenty of info on the topic: http://www.cra-arc.gc.ca/E/pub/tg/t4036/

]]> By: Ray http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-73221 Ray Thu, 12 Mar 2009 07:05:28 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-73221 Andy: You enter your rent in the "Ontario tax credit" section under "tenant rental tax credit' i think it's called. Andy: You enter your rent in the “Ontario tax credit” section under “tenant rental tax credit’ i think it’s called.

]]> By: Andy http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-73211 Andy Thu, 12 Mar 2009 04:05:39 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-73211 Hi, I am filing my taxes right now with Ufile. I however cannot find where to enter my rent. I even tried to contact them but I got some automated responses and none answered my question. Can any of you help me? Nelly ? Goerge ? anyone at all? I will be very grateful. Great website Andy Hi,
I am filing my taxes right now with Ufile. I however cannot find where to enter my rent. I even tried to contact them but I got some automated responses and none answered my question. Can any of you help me? Nelly ? Goerge ? anyone at all?
I will be very grateful. Great website
Andy

]]> By: HOWTO: Start Investing Today! By Using the Perfect Investment Vehicle For Students - the TFSA | Mind of a Young Undergrad Entrepreneur http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-73066 HOWTO: Start Investing Today! By Using the Perfect Investment Vehicle For Students - the TFSA | Mind of a Young Undergrad Entrepreneur Tue, 10 Mar 2009 21:10:30 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-73066 [...] Withdrawal income does not affect government benefits like OAS, GIS, or CCTB. [...]

[...] Withdrawal income does not affect government benefits like OAS, GIS, or CCTB. [...]

]]> By: George http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-72800 George Sun, 08 Mar 2009 00:00:54 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-72800 @Nelly: I can only take a guess as to what happened, but you should probably talk to a tax accountant (or at least a tax preparer) to get further details. Chances are, you had tuition and education credits in 2007 that were large enough to reduce your tax payable to zero. Any extra credits beyond those that you could use can be carried over to future years. That's likely where the 11900 came from, especially if you had ufile carry over the data from your previous year's return. Your 2007 Notice of Assessment should list the amount of tuition/education credits available for carry-forward. @Nelly: I can only take a guess as to what happened, but you should probably talk to a tax accountant (or at least a tax preparer) to get further details.

Chances are, you had tuition and education credits in 2007 that were large enough to reduce your tax payable to zero. Any extra credits beyond those that you could use can be carried over to future years. That’s likely where the 11900 came from, especially if you had ufile carry over the data from your previous year’s return.

Your 2007 Notice of Assessment should list the amount of tuition/education credits available for carry-forward.

]]> By: Nelly http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-72795 Nelly Sat, 07 Mar 2009 23:10:53 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-72795 Hi, I finished a 3 year university program recently (2004 - 2007). When I filed my taxes last year for 2007 using ufile, I included my tuition of $5380 for the year 2006 only. Now I am trying to file my 2008 taxes using ufile again but I see unused tuition of 11900 automatically entered. I am not sure where that amount came from. Can you please help me understand the 11900 ? Again, how do I include the tuition for 2004 and 2005 ? Hi,
I finished a 3 year university program recently (2004 – 2007). When I filed my taxes last year for 2007 using ufile, I included my tuition of $5380 for the year 2006 only. Now I am trying to file my 2008 taxes using ufile again but I see unused tuition of 11900 automatically entered. I am not sure where that amount came from. Can you please help me understand the 11900 ? Again, how do I include the tuition for 2004 and 2005 ?

]]> By: George http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-72360 George Mon, 02 Mar 2009 22:16:03 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-72360 @Martin: I'd suggest that you call CRA and ask. Chances are, though, that the deduction won't be allowed since you don't have receipts to back up the claim. From the CRA web site under child care expenses: "Receipts - The individual or organization who received the payments must give you a receipt showing information about the services provided. When the child care services are provided by an individual, you will need the social insurance number of the individual. The receipt can be in your name or that of your spouse or common-law partner." @Martin: I’d suggest that you call CRA and ask. Chances are, though, that the deduction won’t be allowed since you don’t have receipts to back up the claim.

From the CRA web site under child care expenses:

“Receipts – The individual or organization who received the payments must give you a receipt showing information about the services provided. When the child care services are provided by an individual, you will need the social insurance number of the individual. The receipt can be in your name or that of your spouse or common-law partner.”

]]> By: Martin http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-72343 Martin Mon, 02 Mar 2009 17:59:08 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-72343 Hi, we had a grandmonther from overseas care for our toddler for almost a year. We paid her $400/month in cash, which is half of what we would have paid to a daycare in Toronto, plus we get the benefit of a blood relative looking after the child. My question is, can I claim that amount on my tax return as "Day Care Expenses" because I have no receipts? The grandmother can give receipts I guess but she is not registered in Canada nor does she have a SIN (foreign citizen, so no SIN or any Canadian documents). Thanks in advance, Martin Hi,
we had a grandmonther from overseas care for our toddler for almost a year. We paid her $400/month in cash, which is half of what we would have paid to a daycare in Toronto, plus we get the benefit of a blood relative looking after the child. My question is, can I claim that amount on my tax return as “Day Care Expenses” because I have no receipts? The grandmother can give receipts I guess but she is not registered in Canada nor does she have a SIN (foreign citizen, so no SIN or any Canadian documents).
Thanks in advance,
Martin

]]> By: Sabrina http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-67411 Sabrina Sat, 17 Jan 2009 15:56:31 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-67411 Our family situation is slightly complicated after spending 2 years in family court to get joint-custody of my stepson. He is now 21-month-old and has never been issued a birth certificate and this leads me to believe that the CTTB hasn't been collected on his behalf since his birth. We have joint legal cutody as well as shared physical custody (he lives with us more than 40% of the time). I read on the CRA website that parents can have a shared eligibility but it is not clear how this will play out. Any insight on how to start the process as tax season is here? Our family situation is slightly complicated after spending 2 years in family court to get joint-custody of my stepson. He is now 21-month-old and has never been issued a birth certificate and this leads me to believe that the CTTB hasn’t been collected on his behalf since his birth. We have joint legal cutody as well as shared physical custody (he lives with us more than 40% of the time). I read on the CRA website that parents can have a shared eligibility but it is not clear how this will play out.

Any insight on how to start the process as tax season is here?

]]> By: Proposed Carbon Tax - The Green Shift | Million Dollar Journey http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-53522 Proposed Carbon Tax - The Green Shift | Million Dollar Journey Wed, 24 Sep 2008 10:30:52 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-53522 [...] New universal child tax benefit worth $350/child/year in addition to existing child benefits (what about the existing $1200/child/year UCCB?). [...]

[...] New universal child tax benefit worth $350/child/year in addition to existing child benefits (what about the existing $1200/child/year UCCB?). [...]

]]> By: Choosing a Baby Daycare Center - 10 Questions to Ask | Million Dollar Journey http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-52128 Choosing a Baby Daycare Center - 10 Questions to Ask | Million Dollar Journey Mon, 15 Sep 2008 10:31:42 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-52128 [...] heard the costs of daycare, I almost had a coronary. The bright side is that up to $7,000/year of daycare costs can be claimed under the lower income spouse. This, for us, should equate to getting a $2,800 tax return thus [...]

[...] heard the costs of daycare, I almost had a coronary. The bright side is that up to $7,000/year of daycare costs can be claimed under the lower income spouse. This, for us, should equate to getting a $2,800 tax return thus [...]

]]> By: Universal Child Care Benefit (UCCB) http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-38597 Universal Child Care Benefit (UCCB) Mon, 09 Jun 2008 09:03:28 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-38597 [...] See what Million Dollar Journey had to say about the UCCB program. [...]

[...] See what Million Dollar Journey had to say about the UCCB program. [...]

]]> By: May 2008 Net Worth Update (+3.12%) | Million Dollar Journey http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-37335 May 2008 Net Worth Update (+3.12%) | Million Dollar Journey Thu, 29 May 2008 09:31:18 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-37335 [...] the income front, my wife finally started getting her maternity benefits along with the monthly UCCB payments. Even though the benefits are much less than her regular paycheck, they help take some of [...]

[...] the income front, my wife finally started getting her maternity benefits along with the monthly UCCB payments. Even though the benefits are much less than her regular paycheck, they help take some of [...]

]]> By: Having a Newborn - Getting Down to Business | Million Dollar Journey http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-31253 Having a Newborn - Getting Down to Business | Million Dollar Journey Tue, 15 Apr 2008 09:30:55 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-31253 [...] by step, for new parents.  The list will help make sure the child gets their medical coverage, child benefits, and RESP [...]

[...] by step, for new parents.  The list will help make sure the child gets their medical coverage, child benefits, and RESP [...]

]]> By: George http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm/comment-page-1#comment-28406 George Tue, 18 Mar 2008 01:50:04 +0000 http://www.milliondollarjourney.com/spousal-amount-uccb-and-cctb.htm#comment-28406 Jason: The credit appears on line 367 of schedule 1 to your tax return (you enter the number of children on line 366, and that is multiplied by $2000). The Federal non-refundable tax credits are totalled on line 335, and then the amount is multiplied by 15% (the lowest tax bracket) on line 338. If the credit is $2000 per child, then it's worth $2000 x 0.15 = $300. A non-refundable tax credit helps to reduce the taxes you need to pay, but it won't help you if your taxes are already zero (that's why it's not refundable). Jason: The credit appears on line 367 of schedule 1 to your tax return (you enter the number of children on line 366, and that is multiplied by $2000). The Federal non-refundable tax credits are totalled on line 335, and then the amount is multiplied by 15% (the lowest tax bracket) on line 338. If the credit is $2000 per child, then it’s worth $2000 x 0.15 = $300.

A non-refundable tax credit helps to reduce the taxes you need to pay, but it won’t help you if your taxes are already zero (that’s why it’s not refundable).

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