Of course we all like to see tax breaks, and this year we are starting off with a few of these that could prove to be of value to many. What you should keep in mind is that perhaps some of them might get you to thinking that you should take another direction with your finances so you can capitalize on them.
A good example of one the new tax incentives that might get you thinking this way is the split income that the government wants to implement. If this is something that could prove to be of a significant advantage to you then it may mean making some changes between you and spouse.
Before you jump into this remember one thing. This is an election year. If the present party gets back into office then that’s great. It will probably mean this new incentive will be solid. If they don’t get back into office however, then the incentive could go out the window. So, before you make any big changes keep this in mind.
Often what happens with tax breaks is by the time we put ourselves into the position where we meet all of the criteria, the year is almost over and we haven’t been able to capitalize on them. This is why we encourage you to liaison with a good accountant, and put your tax filing matters into the hands of these experts. They can usually advise you quickly as to what potential tax changes you can make to your benefit.
Some of the tax breaks that have just been introduced are not going to show you an immediate benefit. A good example of this is the ones geared towards families with kids that are under the age of 18. The pay outs for these won’t start coming out until July. It is expected that the payments will be made with a lump sum to cover the first half of 2015.
It would seem that when the Federal government makes some significant moves for Canada tax payers that the majority of the provinces just sit back and bask in the limelight of the Feds. We as tax payers tend to forget that there are two levels of government and that realistically we should expect tax breaks from both of these entities. Unfortunately it is this second level of government that makes some provinces more tax appealing than others, and for Ontario this is debateable.
