There are 2 sure things in life, “death and taxes.” For many, income tax can be confusing and overwhelming to understand. Every year there are new changes both at the federal and provincial level. Here are a few highlights to be aware of in 2017;
Scholarship and Bursaries
Education amount is now called “qualifying student” to ensure the current scholarship exemption is unaffected. This exemption now includes scholarships and bursaries for students 16 years and over at the end of 2017. Students need to be enrolled in a post-secondary school in Canada for programs not deemed post-secondary level but provides skills or to improve skills for an occupation.
The new Canada Caregiver amount combines;
- The family caregiver amount
- Amount for infirm dependants and the original caregiver amount
Its purpose is to provide tax credit for persons who care for someone with physical or mental impairment
Claims range from $2150 to $6883 for each dependant. CRA may request a statement from a medical practitioner in order to claim the deduction.
Tuition, Education, and Textbooks
Claims for education and textbook amounts have been eliminated from 2017 taxation. Unused tuition and education amount from previous years can still be carried forward and applied to other income.
Credits eliminated by CRA
The following credits have been eliminated for the 2017 tax returns
- Public transit amount
- Children’s fitness tax credit
- Children’s arts amount
- Family income splitting
Dates to remember for 2018 tax filing
Last day to issue T4’s, T4A’s, and T5’s to employers and Canada Revenue Agency
2018 Registered Retirement Savings Plan (RRSP) deadline for contributing to your RRSP for the 2017 tax filing year
March 15th, June 15th, September 15th, December 15th
CRA Installment payment due dates for 2017 taxes
Deadline to set up a pre-authorized debit payment with CRA for 2017 to avoid interest charges
Self employed filing due date for 2017 tax returns. Balance owing still needs to be paid by April 30, 2018 to avoid any interest penalties
Do you find your personal taxes complex and confusing? Banka & Company, CPA has many years of experience helping clients make sense of their tax issues. Contact us today to schedule an appointment to discuss with one of our knowledgeable Chartered Professional Accountants (CPA) all your tax inquiries.