What's New For Tax Year 2019?
Tax law changes that affect most taxpayers:
- Climate Action Incentive
This is a refundable credit that is available for every adult taxpayer who lived in Ontario,
Manitoba, Saskatchewan and Alberta. This year, Albert is added to the list while New Brunswick is removed due
to provincial carbon emission legislation changes.
- Enhanced Canada Pension Plan/Quebec Pension Plan
This means from 2019 to 2023, your CPP contribution rate as an employee with increase from 4.95% to 5.95% (QPP from 5.4% to 6.4%).
Self-employed individuals will have to contribute double that rate. The good side is that the extra contributions are deducted from taxable income
instead of using the lowest credit rate.
- Canada Training Credit
As of January 1, 2019, you will be able to accumulate $250 per year, to a maximum over your lifetime of $5,000,
to be used in calculating your Canada Training Credit, a new refundable tax credit that will be available for 2020 and future years. That
non-refundable will be 50% of your eligible tuition fees paid, or your accumulated limit, whichever is less. Taxpayers less than 26, or older than 64
years old, are not eligible.
- Canada Workers Benefit (CWB)
This is just a name change for the previous working income tax benefit (WITB), the eligibilities are the same.
- Income exempt under the Indian Act
If you received exempt income under the Indian Act, you need to set a flag on the return. If all the exempt income are showing on your information
slips, the software will complete form T90 for you. You can also use the form to add income not already entered on T-slips.
- Home Buyers' Plan
The maximum amount you can withdraw from your registered retirement savings plan (RRSP) under the Home Buyers' Plan
(HBP) increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. Also, if you are not considered a first-time home buyer
for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate
in the HBP after 2019 under certain conditions.
- Medical Expenses
For expenses incurred after October 16, 2018, certain cannabis products purchased for a patient for medical purposes will be considered
eligible medical expenses for the medical expense tax credit.
Provincial Tax Changes
- British Columbia
The education tax credit (per month basis) has been discontinued (credits for tuition fees paid are still
available). Students can continue to carry forward unused amounts to claim in a future year.
Beginning in 2019, the $250 deductible for the education property tax credit is eliminated and the calculation of occupancy
cost is now based on school taxes paid.
- New Brunswick
The New Brunswick tuition tax credit has been re-introduced for 2019 and later tax years. New Brunswick tuition fees paid for 2017
and 2018 must be reported on the 2019 return, and can be used in that year or carried forward to a future year. Amounts from 2017
and 2018 can only be claimed by the student and cannot be transferred to a supporting person.
As New Brunswick is implementing its own price on carbon pollution, the federal fuel charge will no longer apply
in New Brunswick as of April 2020. This means that residents of New Brunswick will no longer receive Climate
Action Incentive payments.
- Newfoundland and Labrador
Search and rescue volunteer tax credit is available to match the same federal credit.
- Nova Scotia
A new non-refundable tax credits: venture capital tax credit and innovation equity tax credit have been introduced for
investors who invest in a venture capital corporation or fund. T224 and T225 are used to claim the credits.
A new non-refundable low-income individuals and families tax credit has been introduced for eligible
individuals with employment income.
A new refundable childcare access and relief from expenses tax credit has been introduced for families
with eligible child care expenses.
A new refundable Yukon Government Carbon Price Rebate is available for individuals and businesses.
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