Coming into effect for the 2017 taxation year, the federal textbook tax credits will be eliminated. This credit was $400/month for full-time students and $65/month for part-time students. Even with this change, taxpayers will still be able to carry forward the education and textbook credit amounts from tax years prior to 2017. The federal tuition tax credit will not be eliminated as a result of this measure. If you think this might impact you or have questions, contact us.
TFSA is an acronym for Tax-free Savings Account, which allows Canadians aged 18 and older with a valid social insurance number to make annual contributions, up to a specified limit. Starting from Janaury 1st, 2016, the annual contribution limit for TFSAs has decreased from $10,000 (in 2015) to $5,500. Previous contributions have not been affected therefore the accumulated contribution room through 2016 is $46,500. Be careful when making contributions as there is a 1% penalty
The Eligible Educator School Supply Tax Credit is a new refundable tax credit for 2016. You can claim a 15% credit on up to $1,000 of school supplies purchased each year if you are an eligible educator. An eligible educator is considered a teacher or early childhood educator working at a regulated child care facility, elementary school or secondary school. Supplies that are eligible must be used in the facility for teaching purposes and must not be subject to reimbursement, a
If you have received foreign spin-off shares, then you may be overpaying on your income taxes. Under section 86.1 of the Income Tax Act, an eligible shareholder can file an election with respect to certain eligible spin-off shares. The election allows a qualifying shareholder to be exempt from treating the spin-off shares as a taxable foreign dividend. Instead there is a cost base reduction which means taxes will only be paid when the shares are sold and at the capital gains
Changes to the CPP Withholding Tax Employers pay 4.95% of salaries into CPP, on a maximum of $54,900 of earnings per year, while the self-employed contribution rate is 9.9%. The government is implementing changes to the contribution rate and annual maximum. These changes will begin in 2019 and be fully implemented by 2025. The maximum amount of income subject to CPP will be increasing from $54,900 to $82,700. In addition, the contribution rate will increase to 5.95%, whi
Have you sold your house in 2016 or are you planning to? Effective for the 2016 personal tax year and subsequent tax years, the CRA is changing its requirements around reporting your principal residence. Under the old rules, if the property being sold was designated a principal residence for every year of ownership, the sale would not have to be reported on your tax return. The CRA will now require any sale of a principal residence to be reported under Schedule 3 of the selle