TaxTips May 2019: #vehicle-rebates #Investing #LateTaxReturn #Employees #TaxPlanning #ProbateFees #RRSPs
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Important Dates

Monday, June 17, 2019: Due date for 2018 personal income tax returns for self-employed.  However, any amounts owing were due by April 30th.

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.

Detailed Canadian Income Tax and RRSP Savings Calculator

It can't file your tax return but can certainly help in tax planning. Now includes the 2019 Ontario CARE (childcare) credit.

Detailed Quebec Income Tax and RRSP Savings Calculator

This calculator now includes the enhanced Tax Credit for Career Extension for ages 60+, for 2019.

Personal Tax

Life in the Tax Lane June 2019

Topics in the June video: Zero-emission vehicles; CRA cautions re Health Spending Accounts; Employee clothing taxable benefit; and Donation of credit card loyalty rebates.

Tax Planning 2019 - Start Early!

You should plan ahead so that you are prepared to file your 2019 tax return next year without too much difficulty. One of the most important things to do during the year is to store all tax-related documents in one place. If your tax situation is getting more complicated, find a tax professional now, not next tax season!

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.

Retention of Books and Records

Make sure you're aware of how long you must retain source documents (receipts, invoices, tax slips, investment trade confirmations, etc) and other records for your personal tax return, and for your business.

Ontario Refundable Childcare Access and Relief From Expenses (CARE) Tax Credit

The CARE credit will provide families with a refund of up to 75% of their eligible child care expenses, starting with the 2019 taxation year. The credit will be claimed on the tax return.

Quebec Tax Credit for Career Extension for Age 60+ - Formerly Experienced Worker Tax Credit

This tax credit is renamed, expanded, and enhanced for 2019. The amount of the credit depends upon the maximum eligible amount of work income.  This is the amount by which the eligible work income of the individual exceeds the base amount of $5,000.

Late Filing Penalties and Interest

How to file a late tax return, learn what your exposure is to interest and penalties.

2019 Tax Comparisons Employment Income All Provinces and Territories

BC, Ontario, and Alberta are again the lowest tax provinces for a single person earning $50,000. See also comparisons for a single income family with 2 kids aged between 6 and 17.  Taxes include CPP contributions and EI premiums, ON Health Premium, and QC prescription drug premiums.

2018 Tax Comparisons Employment Income All Provinces and Territories

BC, Ontario, and Alberta were again the lowest tax provinces for a single person earning $50,000. See also comparisons for a single income family with 2 kids aged between 6 and 17.  Taxes include CPP contributions and EI premiums, BC MSP premiums, ON Health Premium, and QC prescription drug premiums.

Financial & Estate Planning / Registered Plans / Investing

Should You Try to Minimize Probate Fees?

Probate fees can be reduced when assets are held in joint ownership, but there can be some drawbacks to this.  Be careful to document the intent of the joint ownership. Know the difference between beneficial and legal ownership.

Borrow to Invest Calculator

If you have been investing for many years, are an experienced investor, and have considered borrowing to invest, try our calculator and make sure you read our article on borrowing to invest. This is not recommended for novice investors!

How to Get Your Money out of RRSPs Tax-Free (Sort of)

Unfortunately, there is no way you can avoid tax when withdrawing money from RRSPs or RRIFs.  But, with some tax planning, you can reduce the taxes payable by borrowing to invest in Canadian stocks in a non-registered account while you're withdrawing funds from your registered account.  We do not recommend this strategy unless you are an experienced investor!

Business / Employees

Employment Standards

Do you know your rights and responsibilities as an employee or employer?  Learn about labour laws, including minimum wages rates, vacation, and statutory holiday entitlement.

Sales Taxes

BC PST Small Sellers

In April 2019 the BC Provincial Sales Tax Act definition of "small seller" was modified to include a provision that the seller must not knowingly have sold goods at a sale other than retail in the previous 12 months.

Legislation / Budgets

Upcoming Provincial Budgets

The new PEI government will likely table their 2019 budget in late June.  The new Alberta government plans to table their 2019 budget in the fall.

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.

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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