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Children's Arts Tax Credit
Canada Pension Plan Changes 2019
Registered Education Savings Plan (RESP)
U.S. Social Security Benefits
Employment Insurance Changes Dec 3, 2017
Medical Expenses
Rollover of RRSP Proceeds to a Registered Disability Savings Plan (RDSP)
My Payment - Method For Online CRA Payments
Tax-Free Savings Account (TFSA)
RRSP Contribution Deadline
First-Time Home Buyers' Amount
Home Buyers' Plan Withdrawal Limit
Payment of Taxes on Income
Tax Due Dates
Keeping Your Records
Voluntary Disclosure to Correct Past Filings With CRA
Personal Income Tax Check List


Children's Arts Tax Credit
Phased out. No longer available.

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Canada Pension Plan Changes 2019

  • Starting in 2019, the Canada Pension Plan (CPP) will be gradually enhanced. This means you will receive higher benefits in exchange for making higher contributions. The CPP enhancement will only affect you if, as of 2019, you work and make contributions to the CPP. The enhancement will increase CPP retirement, disability and survivor’s pensions you may receive. Eligibility for CPP benefits will not be affected.
  • Up until 2019, the CPP retirement pension replaces one quarter of your average work earnings. This average is based on your work earnings, up to a maximum earnings limit each year. Other sources of income—such as the Old Age Security program, workplace pensions and private savings—make up the rest of your retirement income.
  • In 2019, the CPP will begin to grow to replace one third of your average work earnings. The maximum limit used to determine your average work earnings will also gradually increase by 14% by 2025.
  • As a result, pension amounts will increase by more than 33%. Your pension will increase based on how much and for how long you contribute to the enhanced CPP. You will get the full increase if you contribute to the enhanced CPP for 40 years.

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Registered Education Savings Plan (RESP)
RESP contributions cannot be deducted from your income on your return. In addition, you cannot deduct the interest you paid on money you borrowed to contribute to an RESP. Human Resources and Skills Development Canada (HRSDC) provides an incentive for parents, family and friends to save for a child's post-secondary education by paying a grant based on the amount contributed to an RESP for the child. The CESG money will be deposited directly into the child's RESP. No matter what your family income is, HRSDC pays a basic CESG of 20% of annual contributions you make to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year), and a lifetime limit of $7,200. The RESP also has a lifetime maximum limit of $50,000. Of this $50,000 lifetime contribution limit, only $36,000 would qualify for the 20% CESG grant before maximizing the $7,200 limit. HRSDC will also pay an additional CESG amount for each qualifying beneficiary allowing you to receive the maximum CESG of $7,200 sooner.. The additional amount is based on your net family income and can change over time as your net family income changes. For 2018, the additional CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:

  • 40% (extra 20% on the first $500), if the child's family has qualifying net income for the year of $45,282 or less; and
  • 30% (extra 10% on the first $500), if the child's family has qualifying net income for the year that is more than $45,282 but is less than $90,563.

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U.S. Social Security Benefits
If you received U.S. Social Security benefits in 2017, you may be eligible to claim a deduction of 50% of the benefits received. See Exempt Foreign Income.

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Employment Insurance
The EI Program changed on December 3, 2017

Caregiving benefits:

  • A new EI Family Caregiver benefit for adults of up to 15 weeks will be available for eligible caregivers to provide care to a critically ill or injured adult family member.
  • A new EI Family Caregiver benefit for children will be introduced to replace and enhance the Parents of critically ill children benefit. Up to 35 weeks of benefits will continue to be available, with eligibility expanded to a wider support network that includes immediate and extended family members, rather than only parents.
  • Access to EI caregiving benefits will be improved by allowing medical doctors and nurse practitioners to sign medical certificates.

Maternity/parental benefits:

  • Parents will be able to choose between standard (taken over 12 months) or extended (taken over 18 months) parental benefits.
  • Eligible pregnant workers will be able to receive EI maternity benefits earlier, up to 12 weeks before their due date, if they so choose.

If you consider applying to these benefits, please keep in mind that these changes will only be available starting on December 3, 2017, and they cannot be applied to existing employment insurance claims.

For more information on this, see Government of Canada.

Premiums on Self-Employment:
You may be able to enter into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the Employment Insurance (EI) Measure for Self-Employed People. For more information on this, see Government of Canada.

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Medical Expenses
Cosmetic procedures and related expenses qualify as a medical expense when incurred after March 4, 2010, only if they are required for medical or reconstructive purposes.

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Rollover of RRSP Proceeds to a Registered Disability Savings Plan (RDSP)
As of July 1, 2011, for deaths occurring after March 3, 2010, the existing RRSP rollover rules will be extended to allow a rollover of a deceased individual's RRSP proceeds to the RDSP of the deceased individual's financially dependent infirm child or grandchild. These rules will also apply to amounts transferred to an RDSP from registered retirement income fund (RRIF) proceeds and certain lump-sum amounts paid from registered pension plans (RPP). In addition, where the death of an RRSP annuitant occurs after 2007 and before 2011, special transitional rules will allow a contribution to be made to the RDSP of a financially dependent infirm child or grandchild of the annuitant that will provide a similar result to these measures.

To be eligible, the contribution to an RDSP can only be made after June 30, 2011, and, when the death of the annuitant occurs after 2007 and before 2011, the contribution must be made before 2012. This means individuals will have six months in which to make the contribution to an RDSP. For more information, see RDSP.

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My Payment - Online CRA Payments
My Payment is a payment option that allows individuals and businesses to make payments online, direcly through the Canada Revenue Agency (CRA) Web site. This service is currently only available to those who have online banking capabilities with BMO (Bank of Montreal), Scotiabank, TD Canada Trust and RBC Royal Bank. Other banks are expected to be added. Some of the remittances types are as follows:

  • individual income tax
  • child and family benefits repayments
  • goods and services tax/harmonized sales tax
  • payroll deductions
  • corporation income tax
  • excise duty
  • excise tax
For more infomation, see My Payment Questions and Answers on the CRA website. To begin using, see My Payment.

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Tax-Free Savings Account (TFSA)
Contributions you make to the TFSA are made with after-tax dollars but withdrawals are tax-free.

  • In 2017, Canadian residents age 18 or older will be eligible to contribute up to $5,500 annually to a TFSA. Another $5,500 will be available on January 1, 2018. Unused room from prior years may be carried forward from year to year.
  • Contributions will not be deductible.
  • Capital gains and other investment income earned in a TFSA will not be taxed.
  • Withdrawals will be tax-free.
  • Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
  • Withdrawals will create contribution room for future savings.
  • Contributions to a spouse’s or common-law partner’s TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death.
  • Qualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
  • The $5,500 annual contribution limit will be indexed to inflation, if applicable, in $500 increments.

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RRSP Contribution Deadline
February 28, 2018 is the deadline for contributing to a Registered Retirement Savings Plan (RRSP) for the 2017 tax year. December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP.

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First-Time Home Buyers Amount
The purpose is to assist first-time home buyers with the costs related to the purchase of a home. A 15-per-cent credit will be applied to a $5,000 amount, and will provide up to $750 in tax relief to reduce the costs associated with first home purchases completed after January 27, 2009.

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Home Buyers' Plan Withdrawal Limit
The purpose is to provide first-time home buyers with additional access to their RRSP savings to purchase or build a home. The Home Buyers’ Plan withdrawal limit is $25,000 for withdrawals made after January 27, 2009. Your first repayment is due the second year following the year in which you made your withdrawals. You have up to 15 years to repay the amount to your RRSP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew until the full amount is repaid to your RRSPs. You have to buy or build the qualifying home before October 1 of the year after the year of withdrawal.
The Lifelong Learning Plan allows you to withdraw up to $20,000 (limit of $10,000 annually) from your RRSPs to finance training or education for you or your spouse or common-law partner. You cannot use your RRSP to fund a child's education.

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Payment of Taxes on Income
Employees pay some, if not all, of their income tax through source deductions withheld and remitted by the employer. However, if an employee has a change in personal circumstances that has an impact on the source deduction and has not filed the appropriate form with the employer, the result could be taxes owing at the end of the year. In these instances, Canada Customs and Revenue Agency does not usually charge interest or penalty on amounts that should have been paid over the year, provided the outstanding amount is submitted with the return when due.

Self-employed and certain other individuals may be required to submit their income tax in quarterly instalments throughout the taxation year. Failure to make adequate instalment payments could result in interest and penalty charges.

Corporations normally make monthly instalment payments throughout the year. Canada Customs and Revenue Agency charges interest on late or insufficient instalment payments.

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Tax Due Dates
Personal:
Individual tax return must be filed by April 30th. If you have a balance owing, it must be paid by April 30th.
Preparation and filing of a personal tax return (T1) must be completed annually and submitted to Canada Customs and Revenue Agency no later than April 30th of the following year. Any additional taxes owing must also be paid by April 30th or interest will be charged on the overdue amount. Even if you are unable to pay the taxes that you owe, you must still file your return by the April 30th deadline to avoid being charged a penalty.

Personal, self-employed:
If you, your spouse or common-law partner carried on a business during the tax year, your return has to be filed by June 15th. However, if you have a balance owing, it still must be paid by April 30th.

Instalments - If you are required to make instalment payments throughout the year, they are due on March 15, June 15, September 15, and December 15.

Partnerships - Most partnerships will file a partnership information return by March 31.

Corporations:

Tax return must be filed no later than 6 months after year-end, however, taxes are due within 2 or 3 months after year-end depending on the circumstances of the corporation. In addition, most corporations have to pay income tax in monthly or quarterly instalments.
Most corporations are required to pay any balances owing two months (or in some instances, three months) after the end of the fiscal year-end. Generally, for a Canadian Controlled Private Corporation, taxes owing are due 3 months after year-end. The payments are due even when the corporation has not filed its corporate income tax return. Instalment payments are due on the last day of every complete month of a corporation's tax year.

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Keeping Your Records
Generally, you should keep your tax return and supporting documentation (including all receipts) in order to support your claims for six years.

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Voluntary Disclosure to Correct Past Filings With CRA
The Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct inaccurate or incomplete information or to disclose information they have not reported during previous dealings with the CRA. If the CRA accepts the disclosure, the taxpayer will have to pay the taxes or charges owing, plus interest, however, the taxpayer will not be subject to penalty or prosecution for those amounts accepted as a valid disclosure.

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Personal Income Tax Check List

  • Please see our Printable Checklist on the Forms Page
  • All information slips including: T4s,T4As, T5s,T3s,T4RIFs, T4RSPs, T4Es, T4APs, T4OASs
  • 2016 Notice of Assessment
  • Capital gains and losses (Stock disposition and Mutual fund summaries)
  • Charitable donation receipts
  • Childcare expense receipts
  • Medical expense receipts
  • Annual union, professional or like dues
  • Income tax instalments
  • Property taxes and/or rental receipts
  • Rental income statements
  • RRSP receipts
  • Self employment expenses
  • Transit passes
  • Tuition and textbook receipts
  • Employment expenses
  • T2200 declaration of employment expenses
  • TL2 claim for meals and lodging expenses

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