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Provincial Tax Changes

Navigating Tax Season: Stay Informed About Recent Changes in Canadian Taxes

As tax season approaches, it’s important to stay updated on the changes that have occurred since the previous filing period. At our end, we are committed to providing you with comprehensive assistance in understanding the new provincial tax changes regulations and their potential implications for you. Count on us to simplify the complexities and ensure you are well-informed.

Provincial Tax Changes

What Canadians Need to Know This Tax Season

The Ontario Edit:

In Ontario, the Low-Income Individuals and Families (LIFT) credit has been introduced to ensure that minimum wage earners with no other income sources do not pay provincial tax. Eligible taxpayers can expect an average refund of $450.

Another noteworthy change is the Childcare Access and Relief from Expenses (CARE) refundable tax credit. Ontario parents or caregivers with a net family income below $150,000 will experience a positive impact on their refunds. The CARE tax credit considers family income and eligible childcare expenses, resulting in significantly larger refunds for lower to middle-income taxpayers. This translates to an average benefit of $1,250 per family, benefiting approximately 300,000 households in Ontario.

The Low Down on New Brunswick:

New Brunswick has reinstated the tax credit for tuition fees, which was previously eliminated in 2017. Moreover, the credit will be applied retroactively, allowing students to claim tuition fees from 2019 as well as carry forward any fees paid in 2017 and 2018. This brings additional financial relief.

British Columbia in a Snapshot:

Post-secondary students in British Columbia will no longer be eligible for the education credit starting from 2019. However, it’s important to note that this change doesn’t affect the ability to claim tuition fees, ensuring that students can still utilize this deduction to reduce their taxes.

The 411 on Alberta:

With the new government in Alberta, the provincial carbon tax has been abolished. As a result, the Alberta Leadership Adjustment Rebate, previously provided to lower-to-middle-income taxpayers, has been eliminated from July 1, 2019. However, starting from January 2020, the federal government will impose its own carbon tax in Alberta. This means that all taxpayers, regardless of income, will now receive the Climate Action Incentive on their tax returns.

Provincial Tax Changes

Climate Action Incentive Beyond Alberta:

The Climate Action Incentive will see significant increases for taxpayers in provinces where the federal government offers it, including Ontario, Manitoba, and Saskatchewan. The table below illustrates the amount you can expect based on family composition and year:

[Table with Climate Action Incentive Increases for Ontario, Manitoba, and Saskatchewan]

Building a foundation of tax knowledge is crucial to maximize your tax return, as money doesn’t grow on trees. Stay informed and make informed decisions to optimize your provincial tax changes situation.

Québec recently provided an additional $500 to 6.4 million residents

Exciting news! The Québec government has introduced and provided an additional a special one-time refundable tax credit of $500 for the 2021 tax season. Yes, you heard it right – $500 that will directly go into your pocket. However, there are a few conditions to consider, and we’re here to provide a clear explanation of the requirements for Provincial Tax Changes.

Québec provided an additional

Québec provided an additional: Eligibility for the Special One-Time Cost of Living Tax Credit

The Special One-Time Cost of Living Tax Credit is available to individuals who meet the following criteria:

  • You must be a resident of Québec.
  • You must have been 18 years of age or older on December 31, 2021.
  • Your net income for the year 2021 should not exceed $100,000.
  • The credit is expected to benefit approximately 6.4 million residents in Québec.
  • If your net income for 2021 falls between $100,001 and $105,000, you will still be eligible for the credit. However, the amount exceeding $100,000 will be reduced by 10%. Individuals with a net income over $105,000 are not eligible for this credit.
  • The eligibility is determined individually. Therefore, if you are part of a couple, both individuals can qualify as long as their individual net incomes are $105,000 or less.
  • Unfortunately, if an individual passed away before January 1, 2022, they will not be eligible for this credit.

Reason for Providing the Credit to Residents

The purpose of this credit is to help residents cope with the impact of inflation. It is important to note that this is a one-time credit, so it may not be available in subsequent years.

Accessing the Credit

To access this credit, it is crucial to file your tax return. Failure to do so will result in not receiving the credit. Filing your tax return is the key step to ensure eligibility and receive the benefit.

Québec provided an additional

Impact on Already Filed Taxes

If you have already filed your taxes prior to the announcement of this credit, there’s no need to worry. The government will still ensure you receive the $500. By the end of May 2022, they will send you the payment separately. In case you are filing your taxes later in the tax season or have not yet received your notice of assessment, the $500 will be automatically included in your refund amount once your tax return is assessed.

Offsetting Tax Amounts Due

For individuals who owe taxes, this $500 credit can be applied to help offset the amount owed. It provides an opportunity to reduce the outstanding balance or even eliminate it entirely.