Family Tax Cut calculation and unused tuition credits transferred from a spouse or common-law partner

Program(s) affected: T1 Document created: 04 28, 2015 Tax year(s): 2014 Document last modified: Version(s): 18.10, 18.11, 18.12, 18.20 Problem status: N/A

How will the CRA's proposed 2015 amendment to the Family Tax Cut calculation affect taxpayers otherwise eligible for the unused tuition, textbook and education credits transferred from a spouse or common-law partner with respect to their 2014 income tax returns?

Notice from CRA: www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2014-road-balance-creating-jobs-opportunities/family-tax-cut.html

For 2014 and subsequent years, Budget 2015 proposes to amend the calculation of the Family Tax Cut to allow the unused tuition, textbook and education credits transferred from a spouse or common-law partner. This change will affect a very small percentage of families, and will ensure that these families receive the appropriate value of the Family Tax Cut. The change may provide affected taxpayers between $2 and $750 more for the Family Tax Cut.

If this situation pertains to you, don't delay filing your income tax return. Use the existing Schedule 1-A, Family Tax Cut, to calculate the amount to which you are entitled. After the legislative change proposed in the Budget receives Royal Assent, the CRA will automatically reassess income tax and benefit returns where it is apparent that, because of this change, the taxpayer is entitled to an increased amount of the Family Tax Cut for 2014.