TAX CHANGES FOR 2018 FILING
- Canada Child Benefit (CCB): Effective July 1, 2018 and subsequent years, the CCB is being indexed for inflation.
- NEW – Climate Action Incentive: If you live in Ontario, you will be charged a federal carbon tax beginning April 2019 through your fuel charges at the gas station. The federal government has released a new tax credit called the Climate Action Incentive to put some of that money back in your pocket through your income return for 2018. A couple will receive a maximum amount of $231, while a family of two dependant children will receive a maximum of $307.
- Tax-Free Savings Account: The contribution limit has been increased to $6,000 for 2019. However, you may have cumulative limit of an amount greater than $6,000 if you have not been contributing to the maximum limits in the past. We can provide you with the contribution room from CRA website. The amounts on their system are accurate for the prior tax year, as long as the financial institution has provided the activity to CRA.
- Canada Workers Benefit (CWB): Effective for 2019 and subsequent taxation years, CRA introduced the CWB, which is an enhanced version of the Working Income Tax Benefit. This is a refundable tax credit to supplement the income of low-income earners and improves work incentives for low-income Canadians. To assist in the administration of the CWB, universities, colleges, and other designated educational institutions in Canada will be required to file information returns directly to the CRA. This change will mean CRA will receive tuition receipts directly from the educational institution, and may translate in fewer post assessment reviews for students’ returns.
- Sale of Principal Residence: If you sold your home on or after January 1, 2016, for which you want to claim the principal residence exemption, you are required to report the disposition on your income tax return. While CRA does accept late filed designations, penalties do apply. Failure to report the sale on your tax return may result in a penalty up to $2,500.
- Specified Foreign Property: Individuals have to file Form T1135 with CRA for every year they held foreign property with a cost exceeding $100,000. Please inform us if this requirement applies to you so we can advise on next steps. Failure to file this form along with your tax return may result in a penalty up to $2,500.
- Keeping Track of All Tax Related Documents: We encourage you to take advantage of our new client portal to upload documents as you receive them. It will help you stay organized, and keep track of all your income slips and other receipts together, in a secure environment throughout the year. You can create your own subfolders within the taxation year, which you can easily review when you are ready to prepare your tax return.