As the 2017 personal tax filing season is approaching, taxpayers should be aware several changes to tax credits, deductions, benefits and others that government introduced in 2016 and 2017 Budgets.
Tuition, Education, and Textbook Tax Credits
For 2017 and subsequent tax years, the non-refundable Federal’s education and textbook tax credits have been eliminated. The tuition tax credit and related carry forward will continue. The Alberta’s tuition and education tax credits and related carry forward will continue.
Children’s Fitness and Arts Tax Credits
For 2017 and subsequent tax years, the children’s fitness and arts tax credits have been eliminated.
Public Transit Pass Tax Credit
The non-refundable public transit pass tax credit has been eliminated after June 2017.
Eligible Educator School Supply Tax Credit
For 2016 and subsequent tax years, qualifying teachers, and other educators can claim a refundable educator school supply tax credit of 15% of eligible teaching supplies up to $1,000 or $150 per year.
Family Tax Cut
For 2016 and subsequent tax years, the family tax cut, or income splitting tax credit, has been eliminated. Senior taxpayers can still split eligible pension income with their spouses or common-law partners.
Home Accessibility Tax Credit
For 2016 and subsequent tax years, seniors, their spouses, and those who qualify for the disability tax credit can claim a non-refundable home accessibility tax credit of 15% of eligible home renovation expenditures (renovation of your home to enhance mobility or more accessible for seniors or the disabled) up to $10,000 or $1,500.
Canada Caregiver Credit
For 2017 and subsequent tax years, the infirm dependant credit, the caregiver credit and the family caregiver credit are consolidated into non-refundable Canada caregiver credit.
The Canada Child Benefit
The Canada Child Benefit (CCB) came into effect on July 20, 2016 replacing the Canada Child Tax Benefit (CCTB), Universal Child Care Benefit (UCCB), and National Child Benefit Supplement (NCBS). The CCB is a tax-free monthly payment made to eligible families to help offset the cost of raising children under the age of 18.
Reporting Requirement on the Sale of your Principal Residence
For 2016 and subsequent tax years, you will need to report basic information (Date of purchase, original cost, proceeds of disposition and address) regarding the sale of your principal residence on schedule 3. You are not required to pay capital gains on the sale of your principal residence if you didn’t use any part of the home to earn income. There may be substantial penalty for non-compliance, and you could lose your entitlement to the principal residence exemption.