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Child Amount Tax Credit

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Filing Your Return -> Child Amount Tax Credit

Line 367 Child amount tax credit for children under 18

Income Tax Act s. 118(1)(b.1)

This federal non-refundable tax credit is available for dependent children under 18 who ordinarily reside with the parent(s) throughout the taxation year.  This tax credit was first started in 2007.  The October 2014 Federal Tax Update proposes to eliminate this tax credit for 2015 and later years, in conjunction with the increase to the Universal Child Care Benefit (UCCB) for children under 6, and the introduction of UCCB (in a lower amount) for children ages 6 to 17.  The Child Care Expense Deduction will also increase.  All changes are subject to legislative approval.  There has been no change announced for the Canada Child Tax Benefit (CCTB), which provides monthly payments to eligible families.

Details:

bullet based on $2,000 per year per child, indexed for inflation
bullet where the child lives with both parents, may be claimed by either spouse, with unused portion transferable to spouse or common-law partner
bullet In other cases, may be claimed by the parent who is eligible to claim the equivalent to spouse credit for the child (or would be eligible, if that child were the parent's only child).

For 2013, the actual annual federal tax reduction resulting from this tax credit is $335 (15% x $2,234) per child.  For 2014 it is $338 (15% x $2,255).

For 2012 and later years, the child amount tax credit is increased by the Family Caregiver Amount tax credit for each child who, by reason of mental or physical infirmity, is likely to be, for a long and continuous period of indefinite duration, dependent on others for significantly more assistance in attending to the child's personal needs and care, when compared to children of the same age

The federal TD1 Personal Tax Credits Return form, which is used to determine income tax deductions for employees, now includes this tax credit amount.  For more information, see the article on the TD1 form on our Personal Tax page.

See the Canada Revenue Agency (CRA) information on the Child Amount Tax Credit.

Tax Tip:  Make sure the federal TD1 form is completed and given to your employer, to reduce your employment tax deductions if you are eligible for this credit.

 

Provincial child amount tax credits

Yukon and Quebec also provide tax credits for dependent children under the age of 18, and these tax credits are indexed for inflation.  However, the Yukon tax credit mirrors the federal tax credit, so it is expected that it will also be eliminated for 2015 and later years.

Saskatchewan provides a child amount tax credit for children under the age of 19, and the amount is indexed for inflation.  In Saskatchewan, this tax credit is not available for a child if the equivalent to spouse amount was claimed for that child.

For the amount of the Saskatchewan and Yukon tax credit, see the tables of non-refundable tax credits.  For more information on the Quebec tax credit, see the article on Quebec personal tax credits.

Children under 6

Nova Scotia, Prince Edward Island and Nunavut provide a tax credit for dependent children under the age of 6.

Nova Scotia amount for young children (Nova Scotia child benefit)

bullet $100 per month, not indexed for inflation.
bullet In year of birth, starts the month after birth.
bullet In year child turn 6, ends with the month the child turns 6.
bullet Not available if equivalent to spouse amount claimed for the child.
bullet Must be claimed by the spouse with the lower net income, and unused portions are not transferable to the other spouse.  This means the credit is not available to couples with one spouse with no income.

See Child Care Benefit Tax Credit on the NS Finance website.

PEI amount for young children

bullet $100 per month, not indexed for inflation.
bullet In year of birth, starts the month after birth.
bullet In year child turn 6, ends with the month the child turns 6.
bullet Is available even if equivalent to spouse amount claimed for the child.
bullet Must be claimed by the spouse with the lower net income, and unused portions are not transferable to the other spouse.  This means the credit is not available to couples with one spouse with no income.

Nunavut amount for children less than 6

bullet $1,200 per year, not indexed for inflation.
bullet In year of birth, full $1,200 is claimed.
bullet In year child turn 6, full $1,200 is claimed.
bullet Not available if equivalent to spouse amount claimed for the child.
bullet Any portion of the credit unused by one spouse is transferable to the other spouse.

The above tax credits for children under 6 are included in the Canadian Tax Calculator.  However, to make things simpler the tax credit is based on the amount of Universal Child Care Benefit (UCCB) received for the children.

Other Tax Credits for Children

See also:

bullet

Child Fitness Amount Tax Credit

bullet

Children's Arts Amount Tax Credit

 

Revised: November 01, 2014

 

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