Recent Tax Changes that will affect your 2016 Tax Return!!
Children’s fitness & Arts tax credit – The limits for both credits have been reduced for 2016 and will no longer be applicable starting January 1st, 2017. The Arts Credit has been reduced to $250 and the Fitness credit has been reduced to $500.
Family Tax Cut – often referred to as “tax splitting” – This credit has been eliminated from the 2016 filings and subsequent years.
Tuition fees and text book credits – This will be the final year that this credit can be claimed. The credit is derived from the sutdents T2202A given to them annually from their post-secondary or trade school.
Teachers tax credit – New for the 2016 and subsequent tax years, all teachers can claim up to $1000 per year for school supply expenses incurred throughout the year. This is a refundable tax credit and if the maximum is reach it will result in a$150 in tax savings. Must be expenses used in the classroom and be deemed as teaching supplies and not items to enhance the classroom, i.e., Rugs or computers. Must be eligible educator and hold a valid teaching certificate to claim this credit.
TFSA Limits – These have been reduced to $5,500 from $10,000 in 2016.
Sale of Principal Residence – It is now Mandatory for the information of the sale of all Canadian principal residence to be reported on Schedule 3 of their tax return. This would require the original year of purchase, purchase price, sale price and closing costs to be given to the tax preparer prior to completing the return.
Online Changes – Registering for My Account can be done while you wait at our office for your appointment or when picking up your completed returns. We would be happy to provide you with the information require to set up your online account. Setting up My Account through the CRA allows you access to all previously filed tax returns, notice of assessments, and payment schedules. You can manage all data online and no longer will you receive mailings from the CRA. This year all Notice of Assessments will be available within 24 hrs of us e-filing your return.