Federal Government Tax Changes You Should Know About

It sure has been a busy year and the last few months some of the busiest with regards to tax changes. The Federal government has made several announcements to tax changes that may affect you next tax season. Some are good and some not so good. Either way you should be aware of them in order to not only prepare your taxes properly but to plan to reduce any amount you may owe. The changes affect a cross section of Canadians – from young parents to students to the small business owner. TAXplan has made a list of the recent changes to share with you all:

THE BAD:

CRA accepting tax returns 6 days later:

  1. 2017 tax returns will now be accepted by the CRA on Feb.26/18 – that’s 6 days later than last year. If you are absolutely dependent on your tax refund and benefits you’ll have to wait longer to receive it as they won’t start arriving until March so be prepared and get your tax documents into TAXplan as soon as you can. Not sure which documents you need to give us?  Fill out a TAXplan Questionnaire and we’ll tell you exactly what we need from you.

Parents – say goodbye to the Federal children’s fitness & arts credits:

  1. The Federal government has fully eliminated the children’s fitness tax credit and arts amount for 2017. This change amounts to $75 in tax savings for a fully maxed out fitness credit and $37.50 per child for anyone who maxed out the arts amount per child.

A hit to students:

  1. Full time & part-time post-secondary students should be aware that they will no longer be able to claim their education and textbook amounts, federally. However, the good news is you are still eligible for the federal credit for tuition fees. TAXplan likes to give back to students – If you are a full time student you could have you tax return prepared FREE! Contact us to see if you qualify.

A hit to public transit commuters:

  1. The public transit amount has been eliminated which means those of you who commuted in 2017 by public transit can only claim public transit passes purchased January through end of June in 2017.

WE SAVED THE GOOD FOR LAST

Good news for parents of young children:

  1. Canada Child Benefit will increase by 1.5% for the July 2018 to June 2019 benefits. And the even better news is that the Canada Child Benefit is not claimed as income on your tax returns.

Risk is no longer a factor for Canadian Forces and Police Personnel:

  1. The Canadian Forces and Police Personnel deduction is now available to all members on overseas missions regardless of the level of risk they are involved in. This deduction is retroactive to January 1, 2017. Contact a TAXplan TAXpro today to see if you qualify.

Canadian Entrepreneurs see drop in Federal tax rate:

  1. It’s good news for small business owners. Starting January 1, 2018 the small business corporate tax rate will be reduced by 0.5% – which means it will go from 10.5% to 10% with a promise from the Federal Government to reduce it to 9% by January 1, 2019.