In the federal government’s fourth budget, Major Updates in the Federal Budget released on March 19, 2019, several new and revised tax credits were introduced to benefit Canadians. Here are key updates that will significantly impact taxpayers’ obligations in the coming year.
Home Buyers’ Plan Boosts Withdrawal Limit
Under the RRSP Home Buyers’ Plan, the withdrawal limit for eligible homebuyers has been raised from $25,000 to $35,000 as of March 19, 2019. This increase provides homebuyers with more flexibility and support when purchasing a property.
Major Updates in the Federal Budget: Encouraging Lifelong Learning with Refundable Tax Credits
To promote continuous education, a new refundable tax credit has been introduced for mature taxpayers. This credit aims to cover up to 50% of tuition costs associated with training. Each year, Canadians will accumulate $250 in a dedicated account, which can be utilized to offset up to half of their tuition expenses. This credit ensures that individuals like Trisha, in our example, can access financial assistance for educational pursuits throughout their lifetime.
Medical Marijuana Expenses Remain Claimable
Despite the legalization of recreational marijuana, individuals with medical prescriptions can still claim the cost of medical marijuana as a medical expense. The government has clarified that this expense remains eligible for tax purposes, offering continued support for those who rely on medical cannabis.
Tax Credit for Digital News Subscriptions
Recognizing the value of reliable news sources, the government has introduced a temporary non-refundable tax credit for eligible digital news subscriptions. Individuals can claim up to $500 in subscription costs per year, resulting in a maximum annual tax credit of $75. The qualifying outlet must be a Qualified Canadian Journalism Organization, ensuring that taxpayers can access quality news content without financial barriers.
These updates reflect the government’s commitment to supporting homeowners, lifelong learners, individuals with medical prescriptions, and those seeking access to reliable news sources.
