What is new for this Tax Season
2018 has swiftly arrived and with it, several changes have been brought in by the provincial and federal governments. As a taxpayer, you need to be aware of the recent tax changes in Canada to ensure that you make the appropriate adjustments before April 30 – the deadline to file your return this year.
Many important changes and improvements have been observed this tax-filing season. Here are a few things you need to make a note of:
New and Enhanced Credits
Reporting the Sale of your Principal Residence: Starting with the 2016 tax year, you are required to report basic information such as original date of purchase, sale price and address on your tax return when you sell your principal residence and are claiming the full principal residence tax exemption. There is no tax on the capital gain when you sell your principal residence as long as you designate it as such and did not use any part of it to earn income.
Home Accessibility Tax Credit (HATC): For 2016 and subsequent years, you can claim a non-refundable tax credit for eligible expenses incurred for goods and services performed to make a dwelling accessible for a qualifying individual.
The Canada Caregiver Credit: For the 2017 and subsequent years, the Canada Caregiver Credit (CCC) consolidates the Infirm Dependent Tax Credit, the Caregiver Credit and the Family Caregiver Credit. The benefit offers a 15% of non-refundable tax credit up to the max of $6,883 of expenses for the care of parents, grandparents, brothers, sisters, adult children and other relatives who are infirm. An additional $2,150 tax credit is available on expenses for the care of dependent spouse or common-law partner or minor child who is infirm.
Changed Credits and How This Will Affect You
Fitness and Arts Credits are eliminated for 2017.
Education and Textbook Credits for students are eliminated for 2017. However, tuition credits are still available. Therefore, please keep a copy of your tuition form T2202A.
Family Tax Cut was eliminated in 2016 and is no longer available.
Public Transit Credit is to be phased-out in 2017. You can claim this credit for expenses incurred in the first half of 2017 (January 1, 2017 to June 30, 2017)
Pension splitting on eligible pension income between spouses will continue to remain available.
Let us help you achieve your tax saving goals. Contact our tax advisors today for more information.
Subscribe to Our Perspectives
Book an initial consultation with our business advisorsBook Now