***Reprinted from CRA***
2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs)
Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada.
Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2015. However, increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax credit will take effect on July 1, 2015, to coincide with the beginning of the program year for payment of these benefits.
The following chart compares the indexed amounts for the 2014 and 2015 tax years. It reflects an indexation increase of 1.7% for 2015.
Footnote 1 – Under changes announced October 30, 2014, the enhanced Universal Child Care Benefit will replace the existing amount for children under 18 for the 2015 and subsequent taxation years. However the family caregiver amount will continue to be available in respect of an infirm child under 18.
Footnote 2 – Under changes announced in the 2014 Federal Budget, the maximum amount of eligible adoption expenses increased to $15,000 per child (indexed after 2014).
Reproduced with thanks from Diamond Retirement Planning Ltd.
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