Lift is not easy but we learn how to handle it well.As a single parent, managing your finances can be a challenge. With so many expenses and bills to pay, it can be difficult to make ends meet. Fortunately, the Canadian government offers certain tax credits that can help single parents cover the costs of raising their children. In this blog post, we’ll take a look at the various tax credits available to single parents in Canada.
Amount for an eligible dependent
Make sure your child is an eligible dependant before you claim them.Single parents are allowed to claim the amount for an eligible dependent
for one of their children. To qualify, you have to support your child in a home that you live in and maintain.Those conditions MUST BE met.What if it is a joint custody of our child. What can I claim?Unfortunately, the amount for an eligible dependant can’t be split, so you and your child’s other parent need to decide who will be claiming it.
Child Care Expenses Deduction
The Child Care Expenses Deduction is one of the most beneficial credits for single parents. This credit allows single parents to deduct up to $8,000 for each child under the age of seven, and $5,000 for each child between the ages of seven and sixteen. This deduction applies to any costs associated with childcare, including daycare, babysitting, and after-school programs.
To be eligible for this deduction, you must be the primary caregiver of your child, and your child must have lived with you for more than half the year. You must also have paid for the childcare expenses with your own money and not have been reimbursed by another party.
Canada Child Benefit
The Canada Child Benefit is a tax-free payment designed to help parents with the cost of raising children. This benefit is available to all parents, regardless of their marital status. Single parents may be eligible to receive up to $556 per month for each child under the age of six and up to $451 per month for each child between the ages of six and seventeen.
To be eligible for the Canada Child Benefit, you must be the primary caregiver of the child and the child must reside with you for more than half the year.
GST/HST Credit
The Goods and Services Tax/Harmonized Sales Tax Credit (GST/HST) is a refundable tax credit designed to help low- and middle-income families with their living expenses. Single parents with an annual income of less than $45,282 may be eligible to receive up to $443 per year for each child under the age of 19.To be eligible for this credit, you must have lived in Canada for at least six months of the year and you must be the primary caregiver of the child.
Working Income Tax Benefit
The Working Income Tax Benefit (WITB) is a refundable tax credit designed to provide additional support to low-income working families. This credit is available to single parents with a net income of less than $35,000. Single parents may be eligible to receive up to $1,129 per year for each child under the age of six and up to $722 per year for each child between the ages of six and seventeen. To be eligible for the WITB, you must be the primary caregiver of the child and you must have lived in Canada for at least six months of the year.
Final words, as a single parent, managing your finances can be a challenge. Fortunately, the Canadian government offers tax credits that can help you cover the costs of raising your children. From the Child Care Expenses Deduction to the Working Income Tax Benefit, there are a variety of tax credits available to single parents in Canada. To find out more about the credits you may be eligible for, we recommend speaking with a qualified financial advisor or accountant.
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