S & M Tax Services

What’s new for 2019 Taxes

Canada Training Benefit

The federal government introduced the Canada Training Benefit to help with disruption in the labor force due to changes in technology. This refundable tax credit is designed to lower the barrier to professional development and to provide financial support to help pay for half of the tuition and training fees. As a worker, you’ll be eligible to receive up to $250 annually as a tax credit. This amount goes into a notional account, which the worker can use for eligible purposes.

To be eligible to accumulate $250 in a year, you must meet the following criteria:

  • File a tax return for that year
  • Be at least 26 years old and no older than 65 years old at the end of the year
  • Be a Canadian resident during the year
  • Have eligible earnings of minimum $10,000 and maximum $150,000 in the year (this includes employment, self-employment, and maternity and parental benefits)

To help make it easier to keep track of your notional account balance, it will be communicated each year on the Notice of Assessment you receive from the Canada Revenue Agency (CRA) after you file your income taxes. In any given year you can claim the lesser of the balance in your notional account and half of eligible tuition and fees paid in the year.

Home Buyers’ Plan

The home buyers’ plan (HBP) assists first-time homebuyers in attaining a down payment sooner. It allows those buying a home for the first time to withdraw money from their RRSP without paying any tax. Any money borrowed under the HBP must be paid back over 15 years, beginning in the second year after your initial withdrawal was made. Only funds that have been in your RRSP for at least 90 days can be withdrawn as part of the HBP.
• After being frozen for several years, the federal government has increased the withdrawal limit on the HBP as part of the 2019 federal budget. Effective March 19, 2019, those eligible to participate in the program can withdraw up to $35,000 from their RRSP, up from $25,000 in previous years. This means that a couple buying a home together could withdraw a combined $70,000 from their RRSPs to buy their first property.

The home buyers’ plan (HBP) assists first-time homebuyers in attaining a down payment sooner. It allows those buying a home for the first time to withdraw money from their RRSP without paying any tax. Any money borrowed under the HBP must be paid back over 15 years, beginning in the second year after your initial withdrawal was made. Only funds that have been in your RRSP for at least 90 days can be withdrawn as part of the HBP.
• After being frozen for several years, the federal government has increased the withdrawal limit on the HBP as part of the 2019 federal budget. Effective March 19, 2019, those eligible to participate in the program can withdraw up to $35,000 from their RRSP, up from $25,000 in previous years. This means that a couple buying a home together could withdraw a combined $70,000 from their RRSPs to buy their first property.

Canada Child Benefit:

Basic benefit for July 2019 to June 2020
CRA calculates the Canada Child Benefit (CCB) as follows:
• $6,639 per year ($553.25 per month) for each eligible child under the age of six
• $5,602 per year ($466.83 per month) for each eligible child aged 6 to 17

Climate Action Incentive Credit Still claimable for 2019 Taxes:

The climate action incentive (CAI) payment consists of a basic amount and a 10% supplement for residents of small and rural communities. This payment will reduce your amount payable or increase your refund when you file your income tax and benefit return.

How much you can expect

The maximum you can claim depends on your province of residence as well as your personal situation:

 
Province Basic Amount Spouse or common-law
partner amount
Qualified dependant
amount
Single parent’s
qualified dependant
amount
Saskatchewan $305 $152 $76 $152
Manitoba $170 $85 $42 $85
Ontario $154 $77 $38 $77
New Brunswick $128 $64 $32 $64
 

The introduction of this new carbon tax is designed to help Canada meet the lofty goal of reducing emissions by 30 percent below 2005 levels by 2030.

2018 TFSA limit increased to $6000 from 2017 $5500

Unable to claim Transit travel expenses anymore

Unable to claim Kids activities anymore

tax office near me
tax office near me

Contact S & M Tax Services today.

 

Sources:

turbotax.intuit.ca/tips/canada-child-benefit-ccb-8902

www.canada.ca/en/employment-social-development/news/2019/05/backgrounder-canada-training-benefit.html