Dear all CD members,

Please let me know if any body knows about New Child Tax Credit. I just got message that Govt. had been announced in budget of March 2007.

Since July 1, 2007 you can ask for a new non-refundable child tax credit
of 2000$ for each child under the age of 18 years at the end of 2007. This
tax credit had been announced within the new federal budget of March 2007.

If anybody knows about it. please let me know and help other CD also.

With regards,

http://www.cra-arc.gc.ca/agency/budget/2007/taxcredit-e.html

http://www.cra-arc.gc.ca/agency/budget/2007/taxcredit-e.html


Q.1 What is the New Child Tax Credit?

A.1 For 2007 and subsequent years, the 2007 Budget proposes to introduce a non-refundable Child Tax Credit for parents.

Q.2 Who will be eligible for the New Child Tax Credit?

A.2 The 2007 Budget proposes that, where the child resides with both parents throughout the year, either parent would be entitled to claim the Child Tax Credit.

Any unused portion could be transferred to that parent's spouse or common-law partner.

If the child does not reside with both parents throughout the year, the parent who is entitled to claim the amount for an eligible dependant will be able to claim the Child Tax Credit.

Q.3 How will the New Child Tax Credit be calculated?

A.3 The CTC will be calculated by multiplying the lowest personal income tax rate for the year (15.5% in 2007) by $2,000 for each child (indexed after 2007).

Q.4 What will taxpayers need to do to apply for the New Tax Child Credit?

A.4 Taxpayers will claim the New Tax Child Credit when they file their 2007 return.

Q.5 Where can I get more information about the New Child Tax Credit?

A.5 The CRA is committed to providing taxpayers with up-to-date information. Taxpayers are encouraged to check our Web site often - all new forms, policies and guidelines will be posted here as they become available.

In the meantime, please consult the Department of Finance's Budget 2007 documents for details.

Q.6 Can taxpayers entitled to the Child Tax Credit have their income tax withholdings reduced directly from their paycheque?

A.6 Yes. Taxpayers may arrange for a reduction in tax withholdings starting in July. They will need to complete a new (revised) TD1 “Personal Tax Credits Return” and give it their employer. Taxpayers are encouraged to check our Web site often - all new forms, policies and guidelines will be posted here as they become available. The CRA expects that the revised TD1 will be available by June 2007.

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Great..................thank you very much G13 for your positive and good reply.

thanks again

Hey RBO

This new Tax credit for child started this year only.
Most of the company taking info from Employees & giving back to Govt.
So automatically ur tax will be adjusted.
Just check the place where u work.
They need info like how many Children & birth date

Hi, m2611

Thank you very much for your reply.............will help me lot.............

thanks again

This is great. I think I should plan babies anytime soon as well.

Enjoy..

Being a parent, I can tell you...it's gonna cost you way more than 2 grand in a year to raise a baby

Quote:

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Originally posted by febpreet

This is great. I think I should plan babies anytime soon as well.

Enjoy..

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