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TaxTips Apr 2019: #VehicleRebates #Investors #SmallBusiness #TaxReturns #Medical #Budgets
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New TaxTips.ca Content as it Happens

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Important Dates

Tuesday April 30, 2019: 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.

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.

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

Includes most tax credits and deductions, includes taxpayer and spouse, 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.

Fuel-Efficient Vehicle Rebates and Incentives

The federal 2019 budget announced that incentives of up to $5,000 will be available for zero-emission vehicles, in a program that will take effect May 1, 2019.  BC and Quebec have their own incentive programs for fuel-efficient vehicles.

Personal Tax

Life in the Tax Lane May 2019 Video

Doing anything with Bitcoin? You may be targeted by CRA. Find out if your online information was compromised; Taxpayer relief - financial hardship; Reassessments for statute-barred periods.

Directory of Accounting Organizations

Our directory of accounting, bookkeeping and financial planning firms now includes links to the directories of Chartered Professional Accountants (CPAs) members/firms by province.

Tax Relief for Canadians Affected by Flooding, Other Circumstances

Unable to file tax returns or pay taxes due on time?  Tax relief can be requested for inability to pay, financial hardship, or other circumstances.

What If I Can't Afford to Pay the Tax I Owe?

Always file your tax return on time, even if you can't afford the tax, in order to avoid late filing penalties!!  Then talk to Canada Revenue Agency, perhaps request relief under the tax relief provisions.

Changing Your Tax Return

Discovered a missed tax slip?  Missed expenses?  It's  not difficult to change your tax return, and can be done with the tax software you used to NetFile your return.

Free Tax Preparation Services

The Community Volunteer Income Tax Program will prepare tax returns at no charge for modest income individuals with simple tax returns. Modest income for 2018 tax returns is about $35,000 for an individual, $45,000 for a couple, plus $2,500 for each additional dependant.

Charitable Donations Carried Forward

A charitable donation that was initially reported on one spouse or common-law partner's return can be transferred to the other spouse or common-law partner in a subsequent year.

Eligible Medical Expenses - Travel Medical Insurance and More

Don't miss out claiming medical expenses.  Private travel medical insurance may qualify if nothing but eligible medical expenses are covered by the plan.  Home renovations may qualify if they enable a disabled person to be more mobile within the dwelling.

Overpayments of CPP Contributions or EI Premiums

The method of recovery depends on whether the overpayment relates to the current year, or a prior year.

Attendant Care Expenses

Attendant care costs can be claimed for persons who are eligible for the disability amount, and in some situations for persons who do not qualify for the disability amount.  The limit on Federal and Ontario attendant care expenses only applies if the taxpayer claimed the disability amount.

Refundable Medical Expense Supplement

If you have employment or self-employment income exceeding $3,566 in 2018, have claimed a disability supports deduction or medical expenses and have family net income less than $51,484, you may be able to claim a refundable amount of up to $1,222.

Filing With a Spouse / Marital Status

Joint investment income; tax credits and deductions; how to report your marital status and when to update CRA on a change in your marital status.

Financial Planning / Registered Plans / Investing

Are Your Gains and Losses Capital or Income?

For most taxpayers, the gain or loss on the sale of securities will be considered capital gains or losses.  For some taxpayers, such as day traders, the gains and losses will be considered income gains or losses (100% taxable).  However, an election can be made so that the gains or losses on all Canadian securities are considered capital gains and losses.

Foreign US$ - Cdn$ Average Annual Exchange Rate History

We've created a table with the average annual exchange rates for converting US$ to Canadian$, going back to 1997.

Recording Foreign Transactions

If you have purchased an investment in a non-registered account, it is your responsibility to keep records which will allow you to calculate the adjusted cost base (ACB) of that investment, in Canadian dollars, even for investments held in US$. Your brokerage statements will not provide the Cdn$ ACB for investments held in US$.

Tax Treatment of Income From Investments in Call and Put Options

For taxpayers who record gains and losses from call and put options as capital gains or losses (this isn't the case for everyone), the timing is a little trickier for options which have been sold, as opposed to options which have been purchased.  See our table which explains how to do things.

Business

Health Spending Accounts (HSA) and Private Health Services Plans (PHSP)

HSAs and PHSPs are a way of providing tax-free medical benefits to employees.  CRA indicates that some businesses have improperly claimed these deductions. The rules for sole proprietors and sole shareholders are more restrictive - make sure you know the rules.

Legislation / Budgets

Newfoundland and Labrador 2019 Budget - April 16, 2019

There is very little in the way of tax changes in the NL 2019 budget.

Ontario 2019 Budget - April 11, 2019

There aren't many tax measures in the 2019 budget, but a significant one is a new Childcare Access and Relief from Expenses (CARE) refundable tax credit for 2019.  Estate Administration Tax will be eliminated effective Jan 1, 2020 for estates of $50,000 or less, lowered for those over $50,000.

Bill C-97 Budget Implementation Act 2019 No. 1 (BIA 1)

The federal government tabled Bill C-97 on April 8th to implement a number of measures proposed in Budget 2019.

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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