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New TaxTips.ca Content as it Happens
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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.
Life in the Tax Lane July 2019
Topics this month: Taxability of virtual currency; Fee restrictions disability tax credit; Interest deductibility; Construction industry info request by CRA re contractor purchases; New housing rebate/primary residence; CRA service standards.
Provincial Political Contribution Tax Credits
Our information has been updated to reflect the 2019 amounts for provincial political contribution tax credits.
Financial & Estate Planning / Registered Plans / Investing
Define Your Financial Goals
You can eliminate some major decisions by setting long term goals regarding your financial future. It's not as difficult as it sounds, because you don't have to plan your whole financial life at once. At the start, you have to set out your major goals. The fewer the decisions you have to make, the happier you will be.
RRSP Overcontributions Can Be Costly
Each individual taxpayer is responsible - not their accountant or financial planner - to ensure that they don't overcontribute. There is a 1% per month tax on excess contributions. A recent court case upheld tax, penalties, and interest on overcontributions.
What Tax is Deducted from RRSP or RRIF Withdrawals?
The rate of tax varies depending on the amount of the withdrawal. The tax must be deducted from the payment coming out of the registered account - it cannot be paid from a non-registered account after the withdrawal.
Investment Income Tax Calculators
These calculators for all provinces show the big difference in taxes payable on different types of investment income. Even when the age credit and OAS are clawed back, Canadian dividends/capital gains result in the least taxes payable when compared to other types of income such as foreign dividends and interest.
Annual Retirement Income Calculator
How much will you be able to withdraw from your investments each year until they are reduced to zero? Enter your investment balance and varying rates of return.
Business / Employees
Information For Business Owners
See our Business page for articles for self-employed people and incorporated businesses - taxes, expenses, employees, payroll, keeping records, whether to incorporate, and many other topics.
BC Medical Services Plan - Premium Assistance
BC MSP Premium Assistance Pensioners / Veterans
Many elderly pensioners/veterans do not realize that full MSP premiums are being deducted from their monthly cheques. If you know of someone that may be in this position, alert them to the fact that a refund is available if they are low income.
BC MSP Premiums Spouse in Care
When a spouse is in a hospital, nursing home or long term care, and fees are being paid for this care, their income is not included in the income calculation for premium assistance. However, this income exclusion does not apply in a couple of situations.
Legislation / Budgets
Nunavut 2019 Tax Changes
Nunavut's Bill 26, passed in May 2019, increases the basic personal and spousal amounts and cost of living tax credits for 2019 and reduces the small business corporate income tax rate effective July 1, 2019.
Prince Edward Island 2019 Budget - June 25, 2019
Tax changes effective Jan 1, 2020: the basic personal amount will increase to $10,000 with proportionate increases in the spousal/equivalent-to-spouse amounts; the threshold for the low-income tax reduction will increase; the small business corporate tax rate will be reduced to 3.0%.
Upcoming Provincial Budgets
The new Alberta government plans to table their 2019 budget in the fall.
Disability Tax Credit (DTC) Promoters Restrictions Act Regulations
Proposed regulations were published in the Canada Gazette on June 1st, setting a maximum fee of $100 for submitting a DTC application. Interested parties may make representations concerning the proposed Regulations within 30 days after the publication in the Gazette.
Federal Draft Legislation re Health and Welfare Trusts
On May 27, 2019, Draft Legislation Supporting Conversion of Health and Welfare Trusts into Employee Life and Health Trusts was released. Comments may be provided until July 31, 2019. This was a proposal from Budget 2018.