Tax Season is quickly approaching. We wanted to let you know about some of the recent tax changes that could affect your 2017 tax return.
Tax Credit Changes:
Canada Caregiver Credit – Prior to 2017 an amount could be claimed for an individual with a disability, either taking advantage of the Infirm Dependent Credit ($4,668) or the Caregiver Credit ($4,667). These credits have been replaced with the Canada Caregiver Credit. This carries with it a maximum credit of $6,883 for dependents who have a mental or physical disability. As a note, the dependent does not have to live with the taxpayer to claim the credit. This credit is reduced for income over $16,163. It should be noted that parents and grandparents over the age of 65, no longer qualify under this credit.
Tax Credits have been eliminated for the following:
Children’s Fitness Credit,
The Children’s Art Credit,
The Ontario Children’s Activity Tax Credit
The Federal Education and Textbook Tax Credits
Ontario Tuition Credit -Ontario eliminated the tuition credit relating to the period after September 4, 2017 and education amounts after August, 2017.
The Federal Transit Tax Credit - eliminated as of July 1, 2017
In addition to the changes above, below are some of the previous changes that we would like to remind you of since there are penalties applied for failure to comply:
Repeated failure to report an amount of at least $500 (e.g. missing T4s, T3s, T5s or self-employed income) that was required to be included in income and that the taxpayer has failed to report an amount of at least $500 in any of the 3 preceding years.
Disposition of the principal residence not being reported on the tax return. Although disposal of your Principal Residence (form T2091) may be exempt from taxes, there are penalties applied to the late filing of the required form.
Foreign Reporting (form T1135). When a tax payer’s cost of specified foreign property exceeds $100,000 Canadian at any time in the year, a T1135 must be filed. The penalties for late filing this form are $25 per day to a maximum of $2,500.
As always, if you have any questions that relate your specific situation, please get in touch with a member of our team