With the holidays behind us Canadians now turn their focus to compiling their tax receipts as they look ahead to filing their returns before April 30th. Here are a few important numbers you may need:
Working Canadians:
RRSP Contribution Limit: The maximum contribution limit for 2018 was $26,230; this year it’s $26,500.
TFSA Limit: The annual contribution limit for 2019 has increased to $6000. If you have never contributed to a TFSA the maximum cumulative amount is $63,500.
Basic Personal Amount: The maximum amount we could have earned without paying income tax in 2018 was $11,809, for 2019 it is $12,069.
Donation tax credit: As of March 20, 2013, the first-time donor super credit is 25% on donations up to $1000, available for one tax year between 2013-2017. The program has now expired.
Medical Expense threshold: For 2018 the maximum threshold is 3% of net income or $2,302 whichever the lessor. For 2019, the maximum is 3% or $2,352 whichever the lessor.
Low-interest loans: If you lent your family money to re-invest, the current rate you must charge them on the loan is 2% to avoid the secondary income being attributed back to you.
Home Buyers’ credit: Did you purchase a home in 2018? You may be able to claim up to $5000 of the purchase cost and receive a non-refundable tax credit of up to $750.
Seniors:
Pension Income amount: If you received eligible pension payments, superannuation or annuity income you may be able to claim a credit for up to $2,000.
Age amount: If you were 65yrs or older on December 31st you can claim up to $7,333 for 2018 and $7,494 for 2019.
OAS Claw Back threshold: If your total income in 2018 exceeded $75,910 you may have to repay some or all of your OAS pension, for 2019 it’s $77,580.
If you have children:
Canada Child Benefit: The maximum CCB for 2018 is $6,496 per child under age 6 and up to $5,481 for children ages 6 – 17yrs. For 2019 the amounts are $$6,639 and $5,602 respectably. This is a non-refundable benefit and replaces the Universal Child Care Benefit (UCCB). However, you can still apply for previous years under certain conditions, including living with, bring up and being primarily responsible for the child’s care.
Child Care expense deduction limits: As of 2017, the maximum amounts allowed to be claimed are $8000 for children 6 and under, $5000 for children 7 – 16 and $11,000 for children eligible for the disability tax credit.
Disability amount: The non-refundable credit for 2018 is $8,235 (non-refundable credit $8,416 for 2019), with a supplement up to $4,804 for people under 18yrs ($4,909 in 2019); this amount is reduced if child care expenses are claimed.
Family Caregiver amount: If you have a dependant who is physically or mentally impaired, you may be able to claim up to $2,150 when calculating certain non-refundable tax credits.
Children’s Fitness tax credit: 2016 was the last year you can claim up to $500 per child for physical activity programs. You can also claim up to $500 for children who qualify for the disability amount where you have paid at least $100 in registration/membership fees for eligible programs.
Children’s Art tax credit: 2016 was the final year you can claim up to $250 of fees paid per child for artistic, cultural, recreational, or developmental activities. You can also claim up to $500 for children who qualify for the disability amount where you have paid at least $100 in registration or membership fees.
As always, I recommend you use a qualified professional to help with financial matters including the preparation of your tax return. I read a great quote on Linked-In “If you think it is expensive to hire a professional, wait until you see what an amateur cost you”. I don’t prepare tax returns myself, but if you need a name of a good accountant, don’t hesitate to give me a call.
Have a great weekend,
Tracey
Source: Original article posted on Advisor.ca 01-16-17 by Staff, Updated and posted again by Staff 11-19-18, MT01-03-17
Image courtesy of Stuart Miles at FreeDigitalPhotos.net