By June 19, 2017 Read More →

Family Tax Cut Calculator

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The Family Tax Cut is a non-refundable tax credit for two-parent families with at least one child under 18 living at home. It was introduced by the Federal government in October 2014.

Although the Family Tax Cut is not income-splitting, it is based on the concept of income-splitting. Claiming this credit does not affect your actual taxable income.

One spouse gets to claim a credit for the taxes they would have saved if they had in fact split the income off to the other spouse’s tax return.

Under the Family Tax Cut, one person receives a credit of up to $2,000 based on the tax they would have saved if income had been transferred from the higher income earner to the lower, up to a maximum of $50,000 of income.

In order to claim the credit, both you and your partner must file a tax return, however only one person can claim the Family Tax Cut.

Use this calculator to estimate your Family Tax Cut credit and see how much your savings will grow if you invest the credit in a TFSA.

Family Tax Cut Calculator

 

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