With tax deadline approaching, here are seven changes you need to know about
If you still haven’t filed your taxes, there are some important changes to be aware of this year.
Your accountant will surely know about of all of them and act accordingly. But if you’re going it alone, UFile tax expert Gerry Vittoratos has a list of seven new rules you need to know about.
1) Climate action incentive
This one applies only to residents of New Brunswick, Ontario, Manitoba and Saskatchewan.
“A new refundable tax credit to compensate residents from these provinces for the effects of the federal climate action plan, which now sets a price on carbon emissions,” Vittoratos told Yahoo Finance Canada.
“The credit itself is not income tested, which means that every resident of these provinces is eligible to claim it regardless of income.”
2) Tax on split income
The TOSI applies to anyone who gets dividends from things like family corporations. Family members who have not sufficiently contributed to the businesses will be subject to the tax.
3) Accelerated investment incentive
This is welcome news for business owners.
“If you are self-employed and you purchased a capital asset for your business after November 20, 2018, you can now triple the depreciation rate that you would ordinarily apply on this asset in the first year,” said Vittoratos.
4) Service dogs
Getting a service animal is far from cheap. The cost of the animal, training, and maintaining it ranges into the thousands. All of it can now be claimed when you file your taxes.
5) Home buyers tax credit
This applies to Quebec residents only.
“In line with the corresponding federal tax credit, a new non-refundable tax credit of $750 has been added for the first-time purchase of a new home,” said Vittoratos.
6) Senior assistance tax credit
Quebec senior’s aged 70 or over get the senior assistance tax credit. The amount depends. Single’s get $200, as do couples where only one spouse is over 70. Couples where both spouses are over 70 get $400.
7) Tax credit for caregivers supporting an eligible relative
Once again, this one applies only to Quebec. The credit is available to people who helped a relative carry out a basic activity of daily life, for free.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains
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