10 Tips for a Happy Retirement
Retirement is a time for embarking on one of life’s greatest adventures. There’s a lot you can do to make retirement a great time of life. You shouldn’t be too concerned about the financial aspects of retirement planning. Aside from the financial side of retirement, you should also focus on retirement living. This means deciding on what you want to do for the rest of your life. For many, this is the first time in their lives that they have complete control over their schedule. Making the most of this opportunity requires a bit of planning and a focus on what makes you happy. Here are 10 tips for a happy retirement:
1. Increase your financial stability
Can you afford to retire now? If not, what about a partial retirement? Do you have the opportunity to downsize your life? Many retirees or soon to be retired boomers are downsizing their lives to free up money for what matters most during their retirement years.
Financial stability is about more than just your bank balance; it is about knowing your monthly costs are covered. You might want to look at your debt and see if paying it off early will help your peace of mind. Ensuring you have a steady flow of income will make your retirement years much more relaxing and enjoyable.
2. Develop new friendships
Did you know those who have strong social networks are 30 percent happier with their lives? There are certain retirement options that can offer the opportunity to develop new friendships.
Building new connections is a great way to stay engaged with the world around you. You should look for local groups or clubs that share your interests to meet people who have similar goals. These friendships can provide the emotional support and social activity that make retirement living so rewarding.
3. Stay active and healthy
It’s important to stay active and healthy because when you feel good, it’s a lot easier to stay positive and open to new experiences. So make sure you eat well, stay active, and watch your weight. You can look into joining fitness facilities with pools, golf courses, tennis courts, and more.
Staying healthy gives you the energy you need to pursue your travel dreams and daily hobbies. Even simple activities like walking or swimming can make a big difference in how you feel each day. Making health a priority will ensure you can enjoy your retirement to the fullest for many years.
4. Be social and stay connected
Maintaining friendships is crucial to your health and well-being because you need people you can rely on emotionally and for real life help. Therefore, you need to be social and stay connected in order to surround yourself with meaningful connections.
It is a good idea to reach out to old friends and make time for regular visits or phone calls. Staying connected helps prevent the feelings of isolation that can sometimes happen when you stop working. Surrounding yourself with positive people is one of the best things you can do for your happiness.
5. Do what you love
Retirement is the time to sit back, relax, and truly enjoy life. You can set yourself up for success by choosing a carefree lifestyle. One of the best ways to do this is to consider downsizing in order to free up time and money.
You finally have the time to pick up that hobby you put off for years or learn something completely new. Whether it is gardening, painting, or volunteering, doing what you love will give your days a sense of purpose. Focus on the activities that bring you joy and make them a regular part of your routine.
6. Research the best places to retire
It’s possible that you already live in the best place for you, but it’s also possible that there’s a better place for your retirement. Relocating to a more economical location may give you more money for retirement expenses.
You should think about what kind of environment makes you feel most at home and look for locations that offer that lifestyle. Consider things like the local climate, the cost of living, and how close you are to family and friends. Finding the right location can significantly improve your quality of life during your retirement years.
7. Make your travel dreams a reality
Travelling is the most popular and desired for retirees and soon to be retired boomers. So you need to figure out how to travel if you want to have a happy retirement. You can make this happen by setting a goal and prioritizing that goal above everything else.
Travelling allows you to see the world and experience different cultures on your own terms. You might want to start with a small trip to get a feel for what kind of travel you enjoy most. Setting aside a specific travel fund will help you make these dreams come true without worrying about the cost.
8. Keep a schedule and structure
What’re you going to do with your time once the 9 to 5 is over and done? You can make switching from a busy life to one where busyness only happens because you want it to by keeping a schedule. This will help you avoid the boredom and restlessness during this transition from working to being retired.
A loose schedule can help you feel like your days have a natural rhythm and direction. You don't have to be busy every minute, but having a plan for your mornings or afternoons can be very helpful. This structure will help you transition smoothly into your new lifestyle and keep you motivated.
9. Spend your savings, but don’t stop budgeting
You’ll want to be sure that your retirement funds last as long as you need them to. So you’ll need to have a clear plan for making your savings last because you won’t have next week’s paycheck to fix your financial mistakes.
Budgeting is still important because it helps you understand how much you can safely spend on the things you enjoy. You should review your expenses regularly to make sure you are staying on track with your long-term goals. Having a clear financial plan will give you the confidence to spend your money on the experiences that matter most.
10. Hire a financial advisor
You’ll need to create a strategy to maximize your financial resources so it’s important to hire a financial advisor. A financial advisor will help you spend and save more wisely during your retirement.
An advisor can help you navigate the complex parts of retirement planning so you don't have to do it alone. They can offer professional advice on how to protect your assets and grow your wealth over time. This partnership will give you peace of mind knowing your financial future is in good hands.
Securing a Fulfilling Future
Taking the time to plan for both your finances and your lifestyle is the best way to ensure a happy retirement. By following these tips, you can create a life that is full of adventure, friendship, and peace of mind. Retirement is a major milestone, and it is something you should look forward to with excitement. When you focus on your health, your social connections, and your financial stability, you are setting yourself up for success. Remember that this is your time to enjoy the rewards of your hard work and live life exactly how you want.
5 Ways to Save for Your Child’s Education
Post secondary education can be costly. A student attending college or university can expect to pay between $2,500 and $6,500 per year or more in tuition. In addition, other expenses such as books, supplies, housing, student fees, and transportation will add to that total.
Did you know approximately 60% of students with debt rely on parents or family for financial support?
If you start saving for your child’s education early, it will take the pressure off you in the years ahead. It is important to start saving for your child's early so you can provide the opportunity for your children to finish college or university debt free.
There are many ways you can start saving for your child’s education such as the Canadian Education Savings Plan (CESG) and Registered Education Savings Plan (RESP). However, there are also other ways to help you get focused and save for your child’s education in the future.
Here are 5 ways to save for your child’s education:
1. See what you can afford to save
Seeing what you can afford to save will help you see where you’re spending your money. So you should review your bills, receipts, and bank and credit card statements to give you a realistic idea of what you can afford to save.
2. Set and review your budget regularly
Set how much you want to save based on what you can afford to save. Then, review your budget regularly because your financial situation can change.
3. Start early
The best and right time to start saving for your child’s education is early. This means saving for your child’s education even if you don’t have a child yet. So rather than buying expensive birthday presents or Christmas gifts, put some money away on a daily, weekly, or monthly basis towards your child’s education.
4. Family resources
You should encourage godparents, grandparents, and other family members to contribute to your child’s education savings instead of buying expensive birthday presents, Christmas gifts, and other events.
5. Engage your children
You should engage your children by explaining what their education expenses demand so they have an understanding of the important of financial planning. Engaging your children gives them the opportunity to become more involved to save for their education as they grow older.
Tips for Decorating your First Home
Purchasing your first home is an exciting time. There are a ton of possibilities for how you can decorate your first home and make it your own. But, it can also be a little nerve-racking deciding where you should start.
Here are 4 tips for decorating your first home:
1. Clean house at the old place
This is the perfect time to start over. Before you make an offer on a new place, you should clean house at the old place. Get rid of approximately 25 percent to 50 percent of your old stuff such as faulty appliances, wobbly furniture, and questions accessories. This will make your current digs easier to pack up and put you ahead during move-in to your first home.
2. Start with the bedroom
The bedroom is where you’ll spend most of your time when you’re at home. You should start with the bedroom especially if you’re on a tight budget. Purchase a new bedding and paint the bedroom walls to complement your bedding. If you’re ready to splurge, add coordinating window treatments and buy that bed you’ve always dreamed about.
3. Don’t buy everything all at once
Make sure you don’t buy everything all at once. Live and enjoy your first home for at least a couple of months before you make any significant purchases. You need to think about how you’re going to use your house and how you actually live in the house. For example, maybe spending money on renovating the bathroom isn’t as important as beefing up the kitchen and dining area.
4. Fight the urge to match
“Everything has to match.” Retail stores would love for you to buy everything in sets, but you need to fight the urge to match. Don’t turn your home into a lifeless, generic look of a furniture showroom. In addition, don’t be boring, so make sure your own personal style shows through. Your top priority should be proportion, scale, and balance of your furniture and accessories within each room.
3 Ways to Pay Off Student Loans
Now that you finished school you are ready to enter the workforce. This is probably exciting for you, but a daunting transition in your life.
You are probably planning on buying a car and your first home, but you also have to pay for your student loans. There are plenty of ways to pay off your student loans to alleviate your debt and live a better financial life as you are starting out.
Here are 3 ways to pay off your student loans:
1. Make extra payment
Make extra payment is one of the best ways you can pay off student loans faster. For example, pay the minimum payment each month, but make extra payment once every three months in the year for a total of 16 payments.
2. Pay more than the minimum payment
You should pay more than the minimum payment each month. Paying any more than the monthly minimum payment will reduce the cost of your student loans.
For example, let’s say you have a $100,000 in student loans at a 7% interest rate with a 10-year repayment term. When you pay an extra $100 per month, you can save $4,696 in interest costs and pay off your student loans 1.08 years earlier.
3. Make a lump-sum student loan payment
If you have extra cash from a raise, bonuses, or tax refund, you should make a lump-sum student loan payment.
For example, if you have a $100,000 in student loans at a 7% interest rate with a 10-year repayment term, making a lump-sum payment of $2,000 would save you $1,703 on your student loans and pay off your student loans 4 months earlier.
Things You Should Know About Writing a Will
Creating a will with the help of a financial advisor is one of the most important things you can do for your loved ones. Therefore, creating a will is a must. A will protects your assets in order to be passed down to your heirs without any unnecessary hassles.
You should be actively planning for your will so you can stay in control over who gets what of your property. This will give you a peace of mind knowing that your assets will end up in the right hands.
There are 6 things you should know about writing a will:
1. What happens if I die without a will?
A person who dies without a will is said to have died intestate. This means that the person’s assets are distributed based on the laws of intestacy. The laws of intestacy are based on legal relationships and not how much certain relatives may have meant to the person or what emotional attachment certain relatives may have to specific assets of the deceased.
2. Do I need an attorney to prepare my will?
You don’t need an attorney to prepare your will. You’re able to create your own will, but it must meet legal requirements in order to be valid. However, an experienced attorney can provide useful advice, especially if you’re an individual with large assets.
3. Who should act as a witness to a will?
Any person who is an adult and is not included in your will as an executor or beneficiary can act as a witness to your will. This will prevent the potential of any conflict or interest in the event of a dispute. In addition, your witness may have to appear in court if there is a question about the validity of the will. Therefore, you should choose a witness that is likely to remain in your life.
4. Who should I name as my executor?
An executor is responsible for making are your last wishes are carried out. You can choose your spouse, children, or close friend to be an executor. You can also choose an attorney or someone with legal and financial expertise as your executor. Furthermore, you should discuss the responsibility with the person you’ve named as your executor before you complete the will form. Your executor can choose to decline the responsibility if he or she hasn’t yet undertaken the required duties so you should choose more than one executor.
6. How often does a will need to be updated?
You will need to update your will in many different circumstances such if a change in relationship occurs, a beneficiary dies before you, any major assets are purchased or sold, or you moved to a different prove, state, or country. The most important thing to keep in mind is that the only version of your will that matters is the most current valid one at the time of your death. It’s recommended that you review your will once per year to be sure that no changes are necessary.
Financial Tips for Planning the Wedding of Your Dreams
Getting married is one of the most exciting changes in your life. It is the ultimate celebration to cherish with your partner for the rest of your lives. However, weddings can be very expensive as the average wedding costs in Canada is approximately $30,000. But, you do not have to break the bank to create a stylish, special, and memorable occasion.
Here are the financial tips for planning the wedding of your dreams:
1. Stationery
Stationery is one of the first things in your wedding list. These include invitations, save-the-date cards, and thank you notes, which can quickly add up. In order to help your budget, you should shop around for the best prices and keep your design simple and minimalist for the cheapest price. You can also print your own stationery at home for additional savings or even consider going digital with your stationery to be eco-friendly.
2. Wedding Transportation
Many people opt for a limo at their wedding, which can get very, very pricey. Instead of renting a limo for your wedding transportation, ask a friend or family member if they have a nice vehicle or a classic car you can use instead for your wedding day.
3. Dresses, Decorations & Flowers
You can easily overspend on your wedding dress, but you do not have to overspend. You can look into a boutique for your dress shopping in order to save some money. For decorations, choosing to have a wedding in December will save you a lot since most churches and venues are already decorated for Christmas and winter holidays. And for flowers, you can choose to use flowers that are in-season instead of using pricey flowers like peonies. Choose to stick to one or two type of flowers and a lot of greenery to fill in your arrangements.
Did you know you can save money at your venue by changing the time of day and duration of stay that you book? Booking a venue for your wedding in the off-season will make a dent in costs. Looking into a Friday afternoon or evening, or even Saturday around brunch will help you keep costs down. You can also consider booking a 3 hour event instead of a 5 hour event if you are looking to save more.
5. Catering & Cake
One of the most expensive parts of any wedding meal are drinks. Therefore, try asking your venue if you can provide your own drinks. For the menu, you can be less expensive by choosing chicken over steaks and giving your guest a choice of 2 entrees instead of 3 or 4. For your cake, you can purchase a smaller cake with one or two tiers rather than 3 or 4 to give you substantial savings.
6. Consult a Financial Advisor
When it comes to your dream wedding, you might be asking “what is the most-cost effective way to pay for our dream wedding?” Consulting a financial advisor will provide advice on how to efficiently handle the cost of your dream wedding.
How To Start Investing With Little Money
I always imagined that having a solid investment portfolio requires a lot of capital and a very strong financial position. When I was 28 years old I had progressed in my career to a point where I was making enough money to satisfy basic needs, owned a home and was able to set aside a little bit of my income for rainy days.
At that point I still didn't think that I was ready to start investing, simply because I thought with the amount I have and I can contribute every month it would take forever to build a decent size portfolio that will actually help me build a more stable financial future.
You can start investing with little money. Investing in yourself doesn't require a lot of capital, it just takes getting started. Here's how I started investing with little money...
What happened next?
Through a casual conversation with a friend I addressed some of my concerns about investing. I then discovered that I wasn't well informed of all that is available in the market and that I should really sit down and talk to a Financial Advisor. The very next morning I booked a meeting with one. After about an hour of conversation I realized two things:
- I don't know what I don't know, so it is always best to share my concerns with professionals in their field and let them do what they do best.Â
- I don't need a lot of capital (almost any) to start investing. All I need is good credit and a solid monthly financial plan.
It has been 6 years now and I am proud to share what happened since I met Andrei. I was introduced to the concept of "borrowing to invest". I'll break down the math of how everything worked out.
Please note that all of the numbers below are for illustration purposes only and that returns in the financial markets are never guaranteed.
However, this is my case:
I borrowed $200K to invest in 2012. I was servicing the interest on the loan every month at $668 (this number changed with the changes in the prime interest rate). I was not paying off any of the initial $200K I borrowed. All I did was service the interest.
In my first year I spent $8,016 in interest payments. This $8,016 was tax deductible, which in my case meant that I will get almost half of it back on my tax return. The gains I had in my first year on my investments were 12%. That is $24,000 in gains. At that point I had the option of withdrawing those $24,000 in order to service the interest. I chose not to and continued to service the interest on my own.
My investments have done well. 6 years later at an average of 11.4% return per year I now have $343K. This is without making any additional monthly contributions. If I decide to to payback the $200K back today and withdraw from my funds I'll have 143K from 6 years of investing with borrowed capital. I have spent a little over $48,000 in servicing the loan. Which leaves me with almost 100K in gains after all is said and done.
Is borrowing to invest right for you?
Depending on the type of loan, interest rate, and your personal financial goals and objectives, borrowing to invest may be a strategy worth considering. My advice to all of you is to talk to a Financial Advisor early in your life and start building a portfolio using an investment loan before you hit the age of 30. Just remember, you don't know what you don't know, so share your concerns with professionals in their field and let them do what they do best.
You can start investing with little money, you don't need a lot of capital and be in a very strong financial position. It's never too late to start building a decent size portfolio that will help you build a more stable financial future. If borrowing to invest makes sense for you, start today by contacting AWealth for more details on the program.
7 Ways to Save a Down Payment For a House
Saving for a down payment is one of the least exciting and most difficult parts of the home buying process for a first-time home buyer. If you have never had more than a few thousand dollars in the bank, setting aside five figures or more as a down payment may seem impossible. But, saving for a down payment for a house is not as difficult as you may think.
Here are 5 ways to save a down payment for a house:
1. Prioritize
It is all about priorities when it comes to saving a down payment for a house. Are you the type of person who goes out to eat all the time, go on expensive vacations, and buy the latest stuff? Or are you the type of person who is willing to cut down on unnecessary expenses to save for a house?
So if saving for a down payment is one of your priorities, then it’s important to identify where you can cut back. The best way to find areas to cut back is to do a budget. This will help you put more money into your savings.
2. Pay off your debts
You cannot save money if you have outstanding debts. The first thing you need to do is to plan and dedicate yourself to paying off all your debts, commonly referred to as debt consolidation. Start by paying off your debt with the highest amount and interest rate. Then you should take the minimum payment from that debt and use it to help you pay off the next small debt with the highest interest rate.
Once you have paid these off, you can use the two minimum payments that you used to pay for those smaller debts to help you pay off your next debt faster. This will pretty much cause a snowball effect because the minimum payments you are freeing up will help you to make larger and larger payments against one debt at a time.
Related Article: Should You Contribute to Your TFSA or Your RRSP?
3. Get rid of one car
Do you have a partner and do you have two cars? You should consider getting rid of one car. Getting rid of a car will help you save thousands of dollars because you will save on one car payment, gas, insurance, and maintenance every month.
You can move closer to where you work, consider taking the public transit, and even carpooling to work. However, if this does not work for you, you can park your car for a couple of months in the garage, then sell your car once you see that it is working for you.
4. Save extra income from work
Let’s say you get a bonus, tax refunds, or even a raise. You should take that extra money and save it into a separate savings account. It might not seem much, but it’ll eventually add up.
Treating these "windfalls" as money that was never there in the first place is a smart way to boost your savings without affecting your daily budget. By moving these funds immediately into a dedicated house fund, you avoid the temptation to spend them on smaller, temporary things. Over time, these unexpected amounts can significantly shorten the time it takes to reach your goal.
5. Borrow from your Registered Retirement Savings Plan (RRSP)
If you already have some money invested into your RRSPs, this is a great way to come up with a down payment for your house. However, if you do not, this is a good option to save money for your RRSP because you can get a tax credit to help reduce your taxes. You should contact your financial advisor to see if this option is right for you.
Using your RRSP is a common strategy that allows you to leverage your retirement savings for your first home purchase today. It is important to understand the repayment rules so that you can replenish your retirement nest egg while enjoying your new home. Your advisor can help you balance these long-term goals with your immediate need for a down payment.
6. Use a Tax Free Savings Account (TFSA)
Another good option to come up with a down payment for your house is using a TFSA account. The money you put into your TFSA will grow because you do not have to pay income tax on the money you earn. Again, you should contact your financial advisor to see if this option is right for you.
The flexibility of a TFSA makes it an excellent tool for home buyers because you can withdraw the funds at any time without a tax penalty. Because your investment gains are protected from the taxman, your money works much harder for you than it would in a standard savings account. This is often the preferred choice for those who want to keep their retirement funds separate from their housing budget.
7. Look into the First-Time Home Buyers’ Plan (HBP)
You should look into the first-time Home Buyers’ Plan. This will make it easier for first-time home buyers to afford a home. The HBP is a program that allows you to withdraw up to $25,000 in a calendar year from your RRSPs to buy your home.
This program is specifically designed to help Canadians get a foot in the door of the real estate market with more manageable terms. It provides a tax-free way to access your savings, provided you follow the schedule for paying back the withdrawn amount over the following years. Exploring this plan can be the key that finally turns your homeownership dreams into a reality.
5 Things To Do When You Retire
Having a plan on how to spend your money after your retirement is crucial to your happiness and overall wellness. It is such a significant milestone to reach retirement after having worked actively for several years, taking care of your family, and saving for this day. A good plan allows you to have a seamless transition from the working life to your retirement.
Here are 5 things you should do when you retire:
1. Travel
Travelling to another country is a good idea now that you are no longer restricted by limited vacation time. You need to see a new environment apart from your present home where you were preoccupied with tasks such as catering to your family. A getaway experience will help you refresh yourself and transition you into the phase of your retirement.
Exploring new cultures and landscapes is one of the most fulfilling ways to celebrate your newfound freedom. By planning your trips thoughtfully, you can discover hidden gems at your own pace and create lasting memories that enrich your retirement years. Taking the time to wander and explore helps you gain a fresh perspective on the world and marks a beautiful beginning to this next chapter.
2. Volunteer
Many retirees find volunteering to be a rewarding activity. If you love staying around children, you could volunteer at mentoring programs. You can also volunteer to assist at a library or a hospital, join a local volunteer group, or even Peace Corps. However, you should consider what you enjoy doing before you choose where you would like to volunteer.
Giving back to your community provides a wonderful sense of purpose and keeps you connected with people from all walks of life. Whether you are sharing your professional expertise or simply offering a helping hand, volunteering allows you to make a meaningful impact while staying active. It is a heartfelt way to use your time that brings joy to others and a deep sense of satisfaction to yourself.
3. Get a Hobby
Before you eventually retire, you should get a hobby that you’re passionate about. Start the hobby while you’re still working. This may be writing, knitting, singing, dancing, quilting, gardening, painting, woodworking, gardening, and more. The list is inexhaustible so you just need to identify what gets you excited about. This will give you an idea of the hobby you could be spending quality time on when you retire.
Developing a creative outlet gives you something to look forward to each day and keeps your mind sharp and engaged. Whether you are mastering a craft or learning a new language, a hobby provides a relaxing way to fill your time with activities that truly resonate with your soul. It’s all about finding those simple pleasures that make your daily routine feel special and uniquely yours.
4. Take Up a Sport
You will have a lot of time to retire, that’s why it’s good to be involve in a sport in order to engage yourself by practicing, exercising and playing. Apart from using your time wisely, it will also help you to keep fit. Meanwhile, remember that you are choosing a sport for fun and not to win a major champion or anything, so be careful and don’t end up hurting yourself. You can choose from golf, tennis, boating, fishing, biking, and many more.
Staying physically active is key to enjoying a long and healthy retirement, and sports offer a fun way to keep your body moving. Joining a local club or group also provides a great social environment where you can meet new friends who share your interests. By focusing on low-impact and enjoyable movements, you can maintain your energy levels and ensure you have the strength to fully enjoy everything retirement has to offer.
4. Start a Business
Although you are looking for way to spend he abundant time you’ll have when you retire. You should think about a small business to keep yourself busy. However, don’t invest too much capital in any new business. You can search for any online business that is convenient for you. Just remember to enjoy your time and try to live within your means to have great moments after retirement.
Turning a passion project into a small business can provide a stimulating challenge and a modest extra stream of income without the pressure of a full-time career. It allows you to stay current with modern trends and technology while setting your own hours and goals. By keeping things simple and manageable, you can enjoy the thrill of entrepreneurship while still keeping your focus on the relaxation and balance you’ve earned.
Embracing Your New Chapter
Retirement is more than just the end of a career. It is the beginning of a vibrant new journey tailored entirely to your interests. By balancing relaxation with active pursuits like travel, volunteering, and new hobbies, you ensure that your days remain meaningful and full of joy. With a thoughtful plan in place, you can move forward with confidence, knowing that you have the tools and the mindset to make the most of every moment in this well-deserved season of life.
5 Key Tax Advice for New Parents
Having a child can be expensive. Luckily, the Canada Revenue Agency recognizes the costs involved and offers families a range of credits and deductions.
Birth-Related Medical Expenses
All Canadian taxpayers can claim medical expenses that exceed the lesser of either $2,208 or three percent of your net income. If you have medical expenses for yourself, your spouse or common-law partner, your child, or the child of your spouse or common-law partner, total all expenses and subtract the lesser of the two values quoted above. Then, multiply that amount by 15 percent. The result is used as a credit against your taxes owed, and of course, you may include birth-related medical expenses.
2. Eligible Dependant Amount
If you are a single parent, you may be able to claim the amount for an eligible dependent on line 305. To calculate how much you may claim, use Schedule 5, Amounts for Spouse or Common-Law Partner and Dependants. Then, transfer that amount to line 305. The maximum claim for this credit as of 2015 is $11,327.
3. Child Care Expenses Deduction
If you incur child care expenses so that you can work, run a business, go to school or do qualifying research, you may claim a child care expenses deduction. If your child is under seven, you may claim up to $8,000, and for child between seven and 15, you may claim $5,000. If your child qualifies for the disability tax credit, you may deduct up to $11,000.
To claim this deduction, keep all of your receipts form your child care provider, and use Form T778, Child Care Expenses Deduction, to help you calculate the amount of your deduction. Transfer the amount from that form to line 214 of your tax return.
4. Family Tax Cut
First applicable in the 2015 tax year, the CRA introduced the Family Tax Credit in 2014. The FTC allows qualifying families to claim a tax credit up to $2,000. This credit only applies in situations where if the higher-earning spouse were allowed to transfer up to $50,000 of income to the other spouse or common-law partner, they would pay less tax as a result. Both single and dual-income families may apply for this credit. The FTC will not be available in tax years 2016 and beyond.
To claim this deduction, keep all of your receipts form your child care provider, and use Form T778, Child Care Expenses Deduction, to help you calculate the amount of your deduction. Transfer the amount from that form to line 214 of your tax return.
5. Children's Fitness Amount
If you enroll your new baby in infant swimming lessons or some other type of fitness program, you may be able to claim the children’s fitness amount. To claim this amount, calculate the total amount of fees paid to qualifying fitness programs up to $1,000 and enter that amount on line 365 of schedule 1. Add an additional $500 if your child receives the Disability Tax Credit. Important changes to the Children’s Fitness Credit begin in 2016.