Dear Tax Detective,
What should parents be aware of when filing their taxes, especially when they have children with a disability?
1) Family Tax Cut found in (ITA S. 119.1) is a new credit to the higher income spouse, similar to the dependent credit (ITA S. 118(1)). This is a new credit that is computed if your spouse has a lower or no income. The maximum refund is $2,000. Refer to TD1 federal for other credits. Family Tax Cut will not be listed. It’s not possible to claim this new credit on a TD1 during the year (ITA S.153(1.3)(b)). This is incentive to file your taxes early. As a planning step, it is worth considering if both spouses should work, or how much they earn.