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.
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.
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.
