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TaxTips Oct 2019: 2020 Tax rates, tax credits, RRSP/TFSA contribution limits; 2020 Basic Tax Calculator; OAS clawback/capital gains; TFSA withdrawals; much more!
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Important Dates

NetFile is available until January 24, 2020, for filing 2015 to 2018 personal tax returns. EFile is available for the same period, for filing 2015 to 2018 personal tax returns.

Canadian Financial & Income Tax Calculators

We have lots of calculators - re income tax, borrowing, investing, RRIF withdrawals, US estate tax for Canadians, CPP retirement pension calculator and more.

2020 Basic Tax Calculator

This simple calculator compares taxes on both types of Canadian dividends, capital gains, and other income, for every province and territory for 2015 to 2020.  Also shows marginal tax rates for different types of income for the year selected, for every province and territory.

Personal Tax

Life in the Tax Lane November 2019

This month: Mobile Home/RV Park/Campground - not always Specified Investment Business; Shareholder-employees - employment expenses; Payroll audits; Online only charity registration; TOSI & meaning of excluded business re large dividends; IRS new relief procedures for Expats.

2020 Personal Tax Rate Tables Published

The tables show the combined federal and provincial/territorial tax rates for capital gains, both types of Canadian dividends, and other income.  Things could change when 2020 budgets are tabled, and federal is probably guaranteed to change after the election.   Nothing has been confirmed to CRA or to Revenue Quebec.

Alberta 2020 Personal Tax Rates

The table of personal tax rates for Alberta has been revised to reflect the pausing of the indexation of the personal tax system effective for the 2020 tax year.

2020 Non-Refundable Personal Tax Credits

We've published the tables of non-refundable tax credits for 2020 for Canada and all provinces and territories except Quebec, including Alberta 2019 budget changes.  The indexation factors and tax credit amounts have not yet been confirmed to Canada Revenue Agency amounts.

Attribution Rules re Gifts, Transfers or Loans to a Spouse or Related Minor Child

If income-producing property, or money to purchase income-producing property, is transferred or loaned to a spouse or related minor child, attribution rules will apply to tax the income in the hands of the transferor.  This will not apply to loans which are considered "genuine" loans.

Financial & Estate Planning / Registered Plans / Investing

 

2020 RRSP Contribution Limit

The 2020 Contribution Limit will be the lesser of 18% of earned income less any applicable pension adjustments, or $27,230.

2020 Dividend Tax Credit Rates for Eligible Dividends

We've updated the table of eligible dividend tax credit rates to include 2020.  The only change thus far for 2020 is Quebec.  This could change when 2020 budgets are tabled.

2020 TFSA Contribution Limit

The TFSA contribution limit for 2020 will be $6,000, unchanged from 2019.  At the current inflation rate, the limit will increase to $6,500 in 2023.

Tax-Free Savings Account (TFSA) Withdrawals

When a withdrawal is made from a TFSA, the withdrawal amount is added back to your contribution room in the following year.  If you're considering a withdrawal in the next few months, do it before Dec 31st so it increases your contribution room in January 2020.

Fuel-Efficient Vehicles

Rebates for Fuel-Efficient Vehicles and Charging Stations

There is no time limit specified for the federal rebates for fuel-efficient vehicles and charging stations, but the BC and Quebec rebates have end dates specified.  The rebates could end earlier than the specified dates if available funds are exhausted.

Seniors

Old Age Security (OAS) Clawback

If you have capital losses carried forward and unrealized capital gains, and are not going to be collecting your OAS pension for a year or so yet, you may be able to do something now to avoid or reduce an OAS clawback in the future.  Are you a high income earning earner about to apply next year for your OAS, with a reduced income?  Plan ahead!

Business

2020 Dividend Tax Credit Rates for Non-Eligible Dividends

We've updated the table of non-eligible dividend tax credit rates to include 2020.  The only change thus far for 2020 is Quebec.  Rates could still change when 2020 budgets are tabled.

Government / Budgets

Alberta 2019 Budget - October 24, 2019

Tax measures include:  Pause indexation of personal income tax system; Eliminate education and tuition tax credits; Increase tobacco tax; New Child and Family Benefit.

If you need tax or financial help, check our Directory for links to Accounting, Bookkeeping and Financial Planning organizations in Canada.  Canadian income tax is getting more complicated every year, and getting your tax return prepared or reviewed by a professional may save you money!

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