It’s Tax Season! What’s new and old for 2018?

As we welcome the New Year, it also means tax season has begun. Time to get organized and gather up all necessary receipts, along with any income tax documents that you are required to file. Canada Revenue Agency (CRA) will begin accepting 2018 completed income tax returns for filing February 18, 2019.

For many, filing their tax return can feel daunting and complicated. If this is you and you are worried about missing tax credits or expenses you can claim, it might be a good idea to bring your tax return to a Chartered Professional Accountant (CPA). A CPA is your expert tax professional that;

  1. Reduce taxes
  2. Find money

As in every tax season, there are some new tax credits and a few that are eliminated.

Highlights New tax breaks available

Canada caregiver creditThis non-refundable tax credit has been streamlined by replacing the family caregiver credit, the credit for infirm dependants age 18 or older, and the caregiver credit. The change made is tax relief to eligible individuals who have a spouse or common-law partner or a dependant that have physical or mental impairments.

Medical Expense Tax Credit Service Animals – Animals specially trained to assist an individual with severe mental impairment to cope with their impairment (i.e., a service dog with psychiatric training to assist an individual with post-traumatic stress disorder).

Fertility-related expense tax credit – Couples who require medical intervention to conceive a child may be eligible to claim certain expenses even if there is no medical condition. The expenses claimed are generally the same for individuals who have a medical condition.

If you underwent fertility-related procedures and have expenses for any of the 10 previous calendar years that have not been claimed, you can request a change to your income tax and benefit return(s) to include as eligible expenses. Click here to learn more.

Registered Disability Savings Plan – CRA has extended this by five years permitting a qualified family member to be the plan holder of an individual’s Registered Disability Savings Plan

Taxes no longer eligible

Education and textbooks- As of January 1, 2017 this tax credit no longer exists; however, students can keep carrying forward any unused amounts from past years.

Children’s credits – No more tax credits for children enrolled in after school activities such as arts, swimming, or sports.

You may also like to read our blogs Tax Planning tips for individuals. For small business owners we offer Small business Tax Planning Tips. Both provide tips how to reduce tax owing and increase net income.

Do you find your personal tax return complicated and confusing? Not a problem for us. Banka & Company, CPA has 35+ years of knowledge and experience helping clients make sense of their tax issues. Contact us today to schedule an appointment to discuss with one of our Chartered Professional Accountants (CPA) how we can help you make sense of your tax return.

If you have any questions or would like to schedule a complimentary appointment, please contact us at info@bankaco.com or phone 250-763-4528.



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