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If anyone can help me here...I have four kids at home. Do we not not claim under "Federal non-refundable tax credits", "amount for children born in 1997 or later" this year? My preparer says we owe almost $3000 this year because she said we don't. I'm shocked at this amount! Back when I was self employed and didn't pay any income tax out, I never even had to pay this large of an amount back!! Has anyone else had this shock this year?

Under PM Stephen Harper it seemed to good to be true. It seemed complicated, but it is  
now changing, thank goodness. Can your tax preparer not explain it in full?  
 
Under Harper (which affects your 2015 taxes even though he's been now booted)  
 
http://www.macleans.ca/economy/economicanalysis/what-you-need-to-know-about-the-universal-child-care-benefit/  
 
http://www.cra-arc.gc.ca/bnfts/cctb/bfrppl-eng.html

This NEW child tax thing?

For CPP, you pay your portion as an employee (like any other job) and as an employer when you're self-employed. Plus your usual income tax. You don't have to pay EI portion unless you opt in for that, but once u do, you pay forever going forward. I owe every year being self-employees.

Anymore. Haven't been for seven years. Have always got money back since. So this is is a shock

http://www.cbc.ca/news/politics/new-child-benefits-taxes-uccb-1.3369613

about this as far back as last spring and summer.  
 
http://www.ebrandon.ca/messagethread.aspx?message_id=895563&cat_id=6  
 
 
When the Harper clan introduced the new plan, it was obvious that many families were going to get trapped. The Cons bribed people with their own money, with the bill to be paid at tax time this year.  
 
Woz, I hope you weren't one of the people who got sucked into voting Conservative based in part on this April 2016 surprise.  
 
Edited by standard standard h8r, 2016-04-09 22:06:14

Harper "gave" me an extra $840 in 2015 of which $500 was "taxed" back. My overall income went up a little bit but my return went down substantially. I was about -$1,200 on my return over previous years. I am hoping Trudeau's change will improve my situation.

the new child tax stuff the Conservative government brought in last year. I was lucky to not owe but did get a small return. They gave more money but it was all taxable so you don't get to keep much of it.

Sorry, l am bewildered by this. So you have 4 children under 18. You should be able to claim them as dependants. I would get a second opinion from another preparer on this. If you are not satisified with the service you should not have to pay for the taxes if you did not get them completed. Try one of the prep kits online or a turbotax they are step by step. I hope this is what you were referring to. I hate tax pains.

Woz said "This NEW child tax thing? "

This should not be a surprise. It was all over the media at the time under Stephen Harper's Conservative rule when the big cheques rolled out to Canadian families last summer as a federal election promise.  
 
Many young Canadian middle class families were feared to be hit with heavy tax after this generous Harper pre-election gift in the summer of 2015. Big paycheque, but not so great at tax time the following year.  
 
It has nothing to do with Trudeau. He was voted in the fall of 2015 and any changes the Libs now make in 2016 will affect your 2017 return.  
 
I hope you get it sorted out.  
 
 
 
 
 
 
 
 
 
 
 
 
Edited by Kellye, 2016-04-10 12:37:31

There are a few people particularly surprised by the lack refunds that they are used to, due to these changes. However, you should not be paying $3000, if your employer is taking the deductions off correctly. Do you have a lot of other income? interest etc?

No need for a second opinion, it's true. There, in the past, have been TWO deductions for dependants. One being the eligible dependent credit that is only available to single parents for ONE child only, and the child amount (the one that OP is referring to). Harper did indeed eliminate the child amount starting with the 2015 tax year before Trudeau even came into power. This credit is for $2,255 (as of the 2014 tax year) PER CHILD and for 4 kids would be $9,020. It's a non-refundable tax credit which means, it will lower the taxes you are required to pay by 15%. For the OP it would have meant an actual tax savings of $1,353. So there must have been other circumstances involved for them to owe $3,000.  
 
It's been a huge tax hit for people with many children but look for even more next year as Trudeau plans to eliminate the children's fitness and arts credits as well.  
 
Source: I prepare taxes, study the new tax laws yearly and also teach tax courses.  
 
Edited by tanya85, 2016-04-10 18:11:57

Mrshub said "Sorry, l am bewildered by this. So you have 4 children under 18. You should be able to claim them as dependants. I would get a second opinion from another preparer on this. If you are not satisified with the service you should not have to pay for the taxes if you did not get them completed. Try one of the prep kits online or a turbotax they are step by step. I hope this is what you were referring to. I hate tax pains. "

No claiming as dependents the way Harper had it. A lot of people got hit big time because of this. Bet a lot of them aren't as happy now they voted for Harper.By the sounds of things  
Trudeau might have fixed it for next hear,,,

Harper did it but most dyed in the blue cons are blaming it on Trudeau and the new government instead of realizing it's just another bad taste left in the mouth from the heir Harper regime. As for the sports and arts tax credit i am sure that the new all in one nontaxable child tax credit will more than make up for it

NON TAXABLE being the operative word. The previous government liked giving with one hand & taking more away with the other.

Just wait till you lose the ability to income split with your spouse. That had a potential tax savings of $2000.

Basically you probably have been getting more monthly. The "deduction" on the tax return which was a non refundable tax credit against your taxable income was removed but people received more child tax benefit monthly. So a lot of people who always got larger refunds because of claiming the dependents get it monthly now. Also there is the family tax cut and working tax credit that helps with families with lower incomes. And Trudeau plans on taking away income splitting, child fitness credit which will affect a lot of people. Maybe he should lessen the amounts that people are getting monthly if people would rather have it at the end of the year?????

Stay Positive said "Basically you probably have been getting more monthly. The "deduction" on the tax return which was a non refundable tax credit against your taxable income was removed but people received more child tax benefit monthly. So a lot of people who always got larger refunds because of claiming the dependents get it monthly now. Also there is the family tax cut and working tax credit that helps with families with lower incomes. And Trudeau plans on taking away income splitting, child fitness credit which will affect a lot of people. Maybe he should lessen the amounts that people are getting monthly if people would rather have it at the end of the year????? "

They could just save the extra every money month.... maybe???

TEN said "All those problems could be eliminated if we stopped relying on government hand outs to live above our means... "

This is a logical thought.  
 
People still do not understand that a big tax refund is a BAD thing. It means our government has taken more money from you over the year and used it to gain interest, when YOU could have been using it all along to gain interest (although a pittance in a bank sadly) or at least pay off a credit card.  
 
I truly hope the system is on it's way to being fixed. I think we need fewer tax credits and a more simple tax structure instead. My accountant REALLY earns her money each year, that's for sure.

TEN said "All those problems could be eliminated if we stopped relying on government hand outs to live above our means... "

WTH Are you kidding me. LIVING ABOVE OUR MEANS.The goverment takes a PROVINCIAL TAX, A FEDERAL TAX, GST, PST, ENVIRONMENTAL,PROPERTY, RECYCLE, Even a death tax. Your telling people to stop living above their means. How about the government stop taking so much tax. Now they want a sugar tax. On your paycheck you already pay 50% to taxes(maybe more). You mut be a lottery winner or make a hundred grand a year. REALLY!!!!!!!!! How about the goverment stops putting their hand out.Or maybe just feed your kids every second day. Have you seen the price of food. Water is going up, EVERYTHING is going up but wages and supplemental monies. I relly feel for the people that are raising kids today it costs a fortune. You really got my goat by that remark.

I spent almost $6000 in meds this year and they only cover less than $2000, that was my shock this year. (Less than $15000 income. Health coverage was not a plan as they would only cover up to $400/yr and cost $80 month)