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TaxTips Feb 2019: #RRSPDeadline #employees #employers #CarbonTax #ClimateAction #CapitalLoss #Students #OAS #DividendTaxCredits #Business
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Important Dates

RRSP Contribution Deadline for 2018 is Friday, March 1, 2019.

NetFile is available February 18, 2019 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.

Tuesday April 30, 2019 is the due date for 2018 personal income tax returns.  Self-employed individuals have until Monday, June 17th to file their 2018 personal tax returns, but any amounts owing must be paid by April 30th.

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.

Detailed Canadian Income Tax and RRSP Savings Calculator

This calculator includes most tax credits and deductions, includes taxpayer and spouse, can help you determine the best RRSP contribution or pension splitting amount, and tells you if all your donations are not all being utilized.  It can't file your tax return but can certainly help in tax planning.

Personal Tax

Life in the Tax Lane March 2019

This month's 10-minute video covers:
  - Climate Action Incentive Payment re carbon tax;
  - Allowances vs expense reimbursements for employees;
  - Reassessment re estate valuation 5 years after filing;
  - OAS deferral - time limit;
  - Tax service providers dedicated CRA telephone service; and
  - GST/HST New Housing Rebates.

2019 Enhanced Dividend Tax Credit Rates

The tables of dividend tax credit rates for eligible dividends includes rates for 2019.  The only changes thus far are for BC and Quebec.  This could change when 2019 budgets are tabled.

What Types of Income are not Taxable?

Some types of income are not taxable, such as inheritances, gifts and most lottery winnings, and some must be included in the tax return even if they are not taxable, such as GIS and workers' compensation benefits. The latter affect income-tested benefits even though they are not included in taxable income.

GST/HST Credit - File a Tax Return

Every person age 18 or older should file a tax return to establish their eligibility for the GST/HST credit, which is a non-taxable quarterly payment.  A single person with net income of up to $44,000 is eligible for the credit.  Thresholds and credit amounts increase as numbers of dependants increase.

Why You Should File a Tax Return

There may be circumstances which require you to file a tax return, including the sale of your principal residence.  You should file a tax return even if you have little or no income, to receive refundable tax credits, GST/HST credit, and to establish eligibility for other government programs and services.

Transfer/Carry Forward of Unused Tuition and Education Amounts

The tuition and education tax credits have been eliminated now in NB, ON and SK.  However, it is only ON that no longer allows the carry-forward of unused credits from another province when a taxpayer moves to Ontario.

Voluntary Tax Deductions from Old Age Security or Canada Pension Plan Payments

If you previously requested voluntary tax deductions from your OAS or CPP in order to avoid having to make income tax instalments, you can request a change through your My Service Canada Account, or by completing and submitting a form.

Requesting a Change to Your OAS Clawback / Recovery Tax

If your income circumstances have changed such that you think the clawback of your OAS should be reduced or eliminated, you can request a change by completing form T1213OAS and submitting it to Canada Revenue Agency.

Financial Planning / Registered Plans / Investing

RRSP Contributions Not Reported on Previous Year Tax Return

Contributions made Jan-Mar 2019 must be reported on your 2018 tax return, even if they are not being deducted for the 2018 tax year. If you made contributions in Jan-Mar 2018 and didn't report them in your 2017 return, read this article.

RRSP Home Buyer's Plan (HBP) and Lifelong Learning Plan (LLP)

You can borrow from your RRSP to buy or build a home, or to finance full-time training or education.  Make sure you complete Schedule 7 if you have made repayments to the HBP or LLP, otherwise you lose RRSP deduction room.

Capital Losses

Capital losses can normally only be used to reduce or eliminate capital gains.  However, they can be carried back to any of the 3 preceding taxation years, or carried forward indefinitely.

Business

2019 Corporate Income Tax Rates

The Federal small business corporate income tax rate is reduced to 9% effective January 1, 2019.  The Quebec and PEI small business rates are also reduced for 2019, and Manitoba's small business limit is increased.

2019 Non-Eligible (Small Business) Dividend Tax Credit Rates

Due to the 2019 final reduction in the gross-up rate for non-eligible, or "regular" dividends, the dividend tax credit rates for 2019 are automatically revised for most provinces and territories.

Legislation / Budgets

Federal 2019 Budget

The 2019 Federal Budget will be tabled on Tuesday, March 19, 2019.

BC 2019 Budget - February 19, 2019

There were no personal or corporate income tax rate changes in the budget. Student loan interest is eliminated.  The BC Early Childhood Tax Benefit will be replaced by a more generous BC Child Opportunity Benefit on October 1, 2020. The Climate Action Tax Credit will be increased each July 1st until 2021. Several other tax credits are enhanced or extended.

2019 Provincial Budgets

Manitoba will table their 2019-20 budget on March 7th, Quebec on March 21st.

New Brunswick's pre-budget consultations are open until February 28th.  Newfoundland still has pre-budget consultations open, but with no indication of when they close.

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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