Increase in tax advantages for second and all subsequent children, cancelling the limit for a tax bonus

An amendment to the Social Security Act brings two changes affecting the Income Tax Act. The first change brings an increase in tax advantages gained in respect of second and third (or all subsequent) children. The increase can already be applied in the annual tax settlement in respect of dependent activities or in the 2021 tax return. Monthly deposits from dependent activities will be calculated using the current level of possible tax advantages.

The second change is a cancellation of the maximum limit for paying the monthly tax bonus for children. For the first time, the limit will not be used in calculating the January 2022 deposit.