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(19) The federal government provides an arts tax credit for eligible amounts up to $500 per
year per child. The credit is available for fees paid for the enrolment of a child under the age
of 16 at the beginning of the year in an eligible program of artistic, cultural, recreational
or developmental activities. If the child is eligible for the disability tax credit, the age limit
increases to under the age of 18 and the credit may be claimed on an additional $500
when a minimum of $100 is paid on eligible expenses.
Manitoba provides a children’s arts and cultural activity tax credit for eligible amounts up
to $500 per year per child. The credit is available for fees paid for the enrolment of a child
under 16 years old at the beginning of the year in an eligible program of organized and
supervised arts and cultural activities. If the child is eligible for the disability tax credit
and is under 18 years old at the beginning of the year, the credit may be claimed on an
additional $500 disability supplement amount when a minimum of $100 is paid on eligible
expenses.
British Columbia provides a children’s arts credit of up to $500 (or $1,000 for an individual
eligible for the disability tax credit). This non-refundable tax credit mirrors the federal
qualifications.
(20) The federal government introduced a family tax credit resulting in tax savings of up to
$2,000 for certain couples with children under 18, starting in 2014. To calculate the credit,
the spouses first calculate the combined tax they would normally pay after they claim any
non-refundable credits. They then calculate the combined tax they would pay (after non-
refundable tax credits) as if the higher-income spouse had notionally transferred one half
of the difference in their taxable incomes (a maximum transfer of $50,000) to the lower-
income spouse. The difference in taxes payable under these two calculations will equal
the Family Tax Cut credit that one of the spouses can claim. If the difference in tax is more
than $2,000, the tax credit is limited to $2,000.
Generally, to be eligible for the non-refundable credit, an individual must be a Canadian
resident at the end of the year, have an eligible spouse (including a common-law partner)
and a child under 18 at the end of the year who ordinarily lives throughout the year with
the individual or his or her spouse. To claim the credit, both spouses must file an income
tax return and also must not elect to split any pension income they might have.
If a child lives with both of his or her parents throughout the year, either parent may claim
the credit but not both.
(21) First-time home buyers who acquire a qualifying home during the year may be entitled
to claim a federal non-refundable tax credit up to $5,000 and worth up to $750 ($5,000 ×
15%).
To qualify, neither the individual nor his or her spouse or common-law partner can have
owned and lived in another home in the calendar year of the new home purchase or in any
of the four preceding calendar years. The credit can be claimed by either the purchaser or
by his or her spouse or common-law partner.
The credit will also be available for certain home purchases by or for the benefit of an
individual eligible for the disability tax credit.
Saskatchewan’s First-Time Home Buyers Tax Credit provides a non-refundable income tax
credit of up to $1,100 (11% x $10,000) to eligible taxpayers. There are also provisions to
allow persons with a disability to qualify for the purchase of more accessible homes, with
eligibility rules similar to those for the existing federal incentive for first-time home buyers.
The credit generally applies to qualifying homes acquired after December 31, 2011.
Federal and Provincial Non-Refundable Tax Credit Rates and Amounts for 2014
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Current as of December 31, 2014