THE FOLLOWING PERSONAL MEASURES HAVE CHANGED FOR 2017
Teacher and Early childhood educator school supply credit *NEW*
Budget has introduced a teacher and early childhood educator school supply tax credit for 2016 and subsequent taxation years. This measure will allow an employee who is an eligible educator to claim a 15% refundable tax credit based on an amount of up to $1,000 of purchases of eligible teaching supplies by the employee in a taxation year.
The principal residence exemption is an income tax benefit that generally provides you an exemption from tax on the capital gain realised when you sell the property that is your principal residence.
Starting with the 2016 tax year, individuals who sell their principal residence will have to report the sale on Schedule 3, Capital Gains of the income tax and benefit return. Reporting will be required for sales that occur on or after January 1, 2017.
You must apply for the Canada Child Benefit. A link to this application form can be found on our CRA DOCUMENTS page.
If you delay in filing your tax return or do not file for numerous years, you may be required to re apply for the Child Benefit by filing out a full application. The CRA will only re pay three years of credit. Any year payments beyond the 3 years will be lost.
The Government has increased the dollar limits of the Child Care Expense Deduction from $7,000 to $8,000 per child under the age of 7; from $4,000 to $5,000 per child aged 7 to 16; from $10,000 to $11,000 per child who are eligible for the disability tax credit.
Qualifying first time donors may receive an additional federal tax credit of 25% on the first $1,000 of monetary donations, over and above the amounts indicated on this page.
If you have a spouse or common-law partner, you can share the claim for the FDSC, but the total combined donations claimed cannot be more than $1,000.
An eligible first-time donor claims $700 of charitable donations in 2013, of which $300 are donations of money. The charitable donations tax credit (CDTC) and the first-time donor’s super credit (FDSC) would be calculated as follows:
On the first $200 of charitable donations claimed, the CDTC is ($200 x 15%) = $30.
On the donations claimed in excess of $200, the CDTC is [($700 − $200) x 29%] = $145.
On the donations that are gifts of money, the FDSC is ($300 x 25%) = $75.
Volunteer firefighters performing their volunteer firefighting services for at least 200 hours during the year may claim a new non-refundable tax credit calculated at 15% of $3,000. The credit will replace the exemption of up to $1,000 received from a government, municipality or public authority for those services and that volunteer firefighter will not be able to claim anymore.
The $10,000 limit applicable to medical expenses that a taxpayer may consider to calculate the Medical expense tax credit in respect of a dependent relative ( child over 18, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece, or nephew) is eliminated.
Ancillary fees and charges ( cost of examination materials) and examination fees paid for examinations required to obtain a professional status ( e.g. law bar or C.A. exam) or to be licensed to practise a profession or a trade in Canada are now eligible expenses to claim non-refundable tuition tax credit.
The age credit amount is $7,225. The net income level at which the credit starts is $ 35,927 or less. The age credit will be adjusted accordingly if your income is more than this amount but less than $83,427.
The lowest personal income tax bracket for 2017 is up to $41,536 at a rate of 5.05%. The next bracket for 2016 is over $41,537, is at a rate of 9.15%. The next bracket for 2016 on income up to $83,76, is at a rate of 11.16%. The next bracket for 2016 on income up to $ 150,000 is at a rate of 12.16%. The last bracket on income over $220,000 is at a rate of 13.16%.
The Working Income Tax Benefit (WITB) is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.
FIRST-TIME HOME BUYERS CREDIT First-time home buyers purchasing a qualifying home may claim a non-refundable First-Time Home Buyers Credit (FTHBTC) of $750 for the year of acquisition. To qualify you or your spouse or common law partner acquired a qualifying home and you did not live in another home owned by you or your spouse or common law partner in the year of acquisition or in any of the four preceding years.
FOR INDIVIDUALS ENTITLED TO CLAIM DISABILITY TAX CREDIT The same credit may be claimed for a home acquired by or for an individual entitled to claim a disability tax credit, provided it is more accessible or better suited for the individual and also used as a principle residence within one year from date of acquisition.
For further information on non-refundable credits, please follow the link below to Canada Revenue Agency;
A Registered Disability Savings Plan (RDSP) is a savings plan that is intended to help parents and others save for the long-term financial security of a person who is eligible for the Disability Tax Credit. Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59 years of age. Contributions that are withdrawn are not to be included as income for the beneficiary when paid out of a RDSP. However, the Canada disability savings grant, Canada disability savings bond and investment income earned in the plan will be included in the beneficiaries income for tax purposes when paid out of the RDSP.
Note: The deadline for opening a RDSP, making contributions and applying for the matching grant and the income-tested bond for the 2017 contribution year is March 1, 2018
The Senior Homeowners' Property Tax Grant is available to seniors paying at least $500 for property taxes and incomes not exceeding $35,000 for a single and $50,000 for a couple, is increased from $250 to $500. This grant is eliminated if the income reaches $50,000 for a single or $60,000 for a couple.
The Ontario Child Benefit program was announced in the 2007 provincial budget. This benefit will go to low-income families with children under 18 years of age, those working and those on social assistance.
OCB payments are delivered with the CCTB in a single monthly payment. Under the OCB, you may be eligible to receive up to $91.66 per month for each child under 18 years of age. If your adjusted family net income is above $20,000, you may receive a partial benefit
RRSP'S continue to be one of the best tax shelters the average tax payer can take advantage of. Each $1000 contribution could be worth up to $430 in tax savings.
The maximum dollar amount you can contribute to your RRSP is limited to 18% of your previous years earned income, up to an annual limit.
You can find your RRSP deduction limit on your Notice of Assessment for the previous tax year or by calling:
TIPS LINE AT CRA 1-800-959-267-6999
RRSP deduction- Age limit change The age limit to contribute to an RRSP has been increased from 69 to 71 years of age. The taxpayer can contribute to a spousal RRSP until the end of the year in which the spouse reaches 71 years of age and claim the deduction for these contributions.
As your representative we are able to handle reviews with CRA and adjust your file should you omit any information or receipts. When you sign the T1013 Authorizing a Representative form, you allow us to represent you in dealings with CRA. CRA will confirm this authorization with a letter once processed.