FAMILY TAX CUT

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Making "Cents" of the Family Tax Cut

Assuming you don't qualify for a tax credit or deduction is one of the biggest tax mistakes you can make this year. Some of my clients have expressed concern that the Family Tax Cut will affect other benefits, such as the spousal amount. But the way the credit is set-up, the income is never actually transferred between spouses. Calculations are done on a separate schedule based on what would happen if income were transferred. It is only notional income splitting so it does not affect anything else on the return.