The 2016 tax season officially starts on February 20, 2017 when CRA re-opens it’s EFILE services. Deadline to file and pay your taxes is April 30, 2017. Deadline to file for self-employed is June 15, 2017.
Some minor changes to be aware of for this filing season:
Family Tax Cut
The family tax cut has been eliminated and no longer available to use in 2016.
Universal Child Care Benefit (UCCB)
The UCCB program has been replaced with the Canada Child Benefit (CCB) program effective July 1, 2016. The CCB program is a non-taxable benefit whereas the UCCB was a taxable benefit. Therefore, if you received UCCB benefits during 2016, you will still need to report the amounts from your RC62 slip.
Sale of Principal Residence
If you sold your personal home during 2016, there’s now a requirement to report the details of the sale on your tax return. Although it may not result in any additional taxes owing (there may be issues if it was rented or used for business purposes), you are required to report the sale in order to claim the principal residence exemption.
Tax Brackets (Federal)
The tax bracket for taxable income between $45,282 and $90,563 has been reduced from a rate of 22% to 20.5%.
The tax bracket for taxable income above $200,000 has been added and is subject to a rate of 33%.
Children’s Arts and Fitness Tax Credits
The maximum claim for the arts and fitness tax credits has been reduced from $1,000 to $500. 2016 is also the last year to claim these credits as the Liberal government repealed them.
Education and Textbooks Tax Credits
No changes for 2016 but is the last year to claim them. Again, the Liberal government repealed this credit.
If you need help filing your taxes, come in to talk with Stewart, call 604-855-7975, or email email@example.com.