TAX TIPS

The Canada caregiver amount has replaced the family caregiver amount, the amount for infirm dependents aged 18 or older (line 306), and the caregiver amount (line 315).  You could be entitled to claim this amount in the calculation of certain non-refundable tax credits if the person you are making the claim for has an impairment in physical or mental functions.

As of January 1, 2017, this amount has been eliminated.

As of January 1, 2017, this credit has been eliminated

Scholarships, fellowships, bursaries, and artists’ project grants exemption (line 130) – the eligibility for the exemption has been enhanced under certain conditions to include scholarships and bursaries received for occupational skills courses that are not at the post-secondary level (Revenue Canada).

As of January 1, 2017, the federal education and textbook amounts have been eliminated. The eligibility criteria for the tuition amount has been enhanced under certain conditions to include fees paid for occupational skills courses that are not at the post-secondary level.

There are 9 top credits and deductions that many students are not aware of:

1. Tuition Tax Credit: if you attended post-secondary education then you may be able to claim this credit. Unused amounts can be transferred to certain family members such as parents, grandparents, and spouses to name a few.
2. Textbook credit: this credit has been removed, but if you have not used it in previous years you can carry it forward.
3. Interest: you can claim a portion of the interest paid on your student loan.
4. Childcare: if you paid for childcare while studying, working, or conducting research then you can deduct expenses.
5. Working Income Tax Benefit (WITB): if you have a dependent while you are a student and make a modest income for yourself, you may be eligible to take advantage of this benefit.

For more information you can click here to  visit CRA’s website.

Individuals who need medical intervention to conceive a child are eligible to claim the same expenses as individuals with medical infertility. You can also request an adjustment to claim such medical expenses on any income tax return for the 10 previous calendar years (Revenue Canada).

As of March 22, 2017, nurse practitioners have been added to the list of medical practitioners who may certify eligibility of a person for the DTC.

The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2018 will be $55,900—up from $55,300 in 2017. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $55,900 in 2018 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2018 remains $3,500.

The employee and employer contribution rates for 2018 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2018 will be $2,593.80 each and the maximum self-employed contribution will be $5,187.60. The maximums in 2017 were $2,564.10 and $5,128.20

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 5%.
• The interest rate to be paid on corporate taxpayer overpayments will be 1%.
• The interest rate to be paid on non-corporate taxpayer overpayments will be 3%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans will be 1%.
• Change: The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.98%.

The CRA recommends following these tips with regards to your financial literacy:

• Do your research to learn about benefits and credits you may be eligible for
• Keep your tax records accurate
• Use free help with tax preparation clinics being run by volunteers across the city
• Protect yourself from fraud from individuals who claim to be from the CRA

The CRA is committed to making sure Canadians in need get their benefits and credits. If you ever have a need you can contact the CRA at 1-800-387-1193 to talk about your situation or when there are changes to your address, marital status, number of children in your care, and more.

You can the CRA’s online tools to make changes or adjustments to you tax returns:

• T1 Individiual Tax Return: after you login to My Account on the CRA’s site you can navigate to “Change My Return” to make changes
• T2 Corporation Income Tax Return: you can use the same CRA-approved Corporation Internet Tax Filing software that you used to file your T2 to make adjustments. Or you can send a letter explaining the change to your tax centre.
• GST/HST Return: after you login to the CRA’s online tool (My Business Account) you can select “Adjust a Return” to start making changes.