We will be releasing a software update at the beginning of January 2015 to address the tax changes
announced by the Federal Government in October. This update will have a significant impact on your
Tools One calculations where there are children involved. Current DivorceMate subscribers will
automatically get the update when it is available. Here is a breakdown of the changes.
The Family Tax Cut (2014 and subsequent tax years)
Couples with a dependent child under 18 years of age may transfer up to $50,000 of taxable income
from the higher income earning spouse to the lower income earning spouse. The maximum tax savings
is capped at $2,000.
This would not apply to separated or divorced couples unless they have repartnered. If both parties
have repartnered, a child in shared custody could potentially mean both new families could take
advantage of this tax savings.
Child Care Expense Deduction (2015 and subsequent tax years)
The child care tax deduction is being increased by $1,000. Therefore, the tax deduction increases to:
a) $8,000 per child for children under 7 years of age;
b) $5,000 per child for children 7 to 15 years of age, inclusive; and
c) $11,000 per child for disabled children of any age.
Children’s Fitness Tax Credit (2014 and subsequent years)
The amount of program fees eligible for a federal non-refundable fitness tax credit for children engaged
in qualifying activities doubles from $500 to $1,000 per child. In 2015, this tax credit becomes
Universal Child Care Benefits (UCCB) (2015 and subsequent benefit years)
The UCCB increases from $100 to $160 per month for children under 6 years of age. A new benefit of
$60 per month begins for children 6 to 17 years of age, inclusive.
Child Tax Credit (2015 and subsequent taxation years)
This non-refundable tax credit for children under 18 years of age has been repealed, and replaced by the