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TaxTips Feb 2020: Budgets; T1 What's New; Income splitting; Students; Debts of deceased; Unclaimed money; 2020 tax rates; Principal residence sale.
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Important Dates

NetFile is available until Friday, January 29, 2021, for filing 2016 to 2019 personal tax returns.

EFile is available until January 22, 2021 for filing 2016 to 2019 tax returns.

RRSP Contribution Deadline:  March 2, 2020 is the deadline for making RRSP contributions for the 2019 tax year.

Canadian Financial & Income Tax Calculators

We have lots of calculators - for income tax, borrowing, investing, RRIF withdrawals, US estate tax for Canadians, CPP retirement pension calculator and more.  The following very detailed tax calculators are great for tax planning:

2020/2019 Canadian Tax & RRSP Savings Calculator - all provinces & territories except Quebec

2020/2019 Quebec Tax & RRSP Savings Calculator

Personal Tax

Life in the Tax Lane March

This month's video discusses: 
 - T1 Season - What's New
 - U.S. - New Disclosure Requirements for Crypto Activities
 - Vehicle Logs/Apps
 - Tenant Relocation Assistance - Taxable?
 - Starting a business While Collecting EI
 - In-Kind Contributions to an NPO

Have you Sold Your Principal Residence?

This sale MUST be reported on the tax return, even if it is 100% eligible for the principal residence exemption.  When there is more than one owner, each will report their share of the sale.

Income Splitting

There are several ways of splitting income, either with a spouse or child.  Some methods of splitting income with a spouse are done only on the tax return, such as pension splitting.

Eligible Dependent / Equivalent to Spouse Tax Credit

Are you a single parent? Or, are you supporting a parent or other dependent relative? The equivalent to spouse tax credit may be available.

BC 2020 Marginal Income Tax Rates

Our tax rate tables have been revised to include the new BC top tax rate of 20.5%.  This results in a combined federal/BC top tax rate of 53.5% for taxable income over $220,000.

2020 Marginal Tax Rate Tables

The 2020 tax rate tables have been updated to include the effect of the federal enhanced basic personal amount.

Students - Tax Information, Savings Plans, Financial Help

Learn about tax deductions and credits, private school costs, RESPs, student grants and loans, and help with tax preparation.

Are Your Tax Credits Changing for 2020?

Turning 65 this year? Other tax credits changing? Complete a new TD1 form to give to your employer.  Your TD1 form determines your tax withholdings. Working part time = maybe no tax withholdings.

Enhanced Canada Pension Plan (CPP)

Are you confused about the 2019 changes to the CPP? The contributions are separated into 2 parts for the tax return. The original 4.95% CPP is used for a tax credit as usual, and the additional contribution for enhanced CPP is allowed as a deduction from income.

Financial & Estate Planning / Registered Plans / Investing

What Happens to Debts of a Deceased Person?

If that debt is a tax debt, it can be recovered by CRA from named beneficiaries of registered plans, or from others to whom the deceased transferred property prior to death.

Unclaimed Money - Is Some of it Yours?

The Bank of Canada holds about $888 million of unclaimed balances, and the BC Unclaimed Property Society holds over $159 million. There are separate Alberta and Quebec unclaimed property registries.

Business

2020 Corporate Income Tax Rates

The general corporate tax rates have been reduced for 2020 in Alberta and Quebec, and the small business tax rate has been reduced in Ontario, Quebec and Prince Edward Island.

Sales Taxes

2020 Sales Tax Rates - GST/HST, PST, RST, QST

There are no sales tax rate changes thus far for 2020.

Government / Budgets

BC 2020 Budget February 18, 2020

The budget introduces a new top personal tax rate of 20.5%, as well as PST on carbonated beverages and streaming services such as Netflix and Amazon Prime.  A new BC Access Grant for students is also introduced.  Carbon tax rate increases for 2020 and 2021 are detailed.

Nova Scotia 2020 Budget - February 25, 2020

No personal tax changes were announced. Corporate tax rates to be reduced: general to 14%, small business to 2.5%. Vaping products to be taxed, tobacco taxes increase.  Digital media and digital animation tax credits will be extended.

Alberta 2020 Budget - February 27, 2020

There were no new tax changes announced.  Corporate general income tax rate reductions were previously announced.  The target is to have a small budgetary surplus by the 2022-23 fiscal year.

Northwest Territories 2020 Budget - February 25, 2020

No new taxes were announced.

Nunavut 2020 Budget - February 26, 2020

There were no tax changes announced.

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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