Attention, parents: You could be in for a tax hit when filing this year

By Rob Carrick

There's a federal budget coming Tuesday and it will be watched closely to see how the Liberals deliver on their election promises. On Thursday, they pledged to restore Old Age Security eligibility back to 65. For young families, there's the Canada Child Tax Benefit, which was a key part of the party's platform in the election last fall. This program replaces the Enhanced Universal Child Care Benefit, which parents will have to account for on their 2015 tax returns. A tax expert looks here at how reporting enhanced UCCB benefits may, in combination with another tax change, result in parents paying more tax than they expected, or getting less of a refund.

Here's a calculator the Liberals have used to show how much people will benefit under the Canada Child Tax Benefit.

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The question: "Which tax program do you think is best?"

My reply: There was a time when there were only a few tax software programs, and I was able to test them all. Today, there are more than a dozen if you include all the products offered online and through stores. As a result, I'll have to draw upon reader feedback to answer this question. TurboTax and UFile both have their fans, and I've heard good things about a pay-what-you-want product called SimpleTax and a freebie called StudioTax. A recent column I wrote on tax software may be helpful.

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