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NEW TAX CHANGES FOR 2017 TAX YEAR !edit



WHATS NEW FOR 2018 TAX YEAR?

Not much has changed for this tax year. The few changes are listed below, or you may discuss with your tax professional. Please refer to tax changes for 2017 and tax changes for 2016 to be updated on previous changes in recent years.

 

The Climate Action Incentive is a new refundable credit available as of January 1, 2018. For more information, see Schedule 14, Climate Action Incentive. Line 449

 

Employee home relocation loan deduction (line 248 of the return) – As of January 1, 2018, this deduction has been eliminated.

 

Medical expenses (lines 330 and 331 of Schedule 1) – Eligible medical expenses have been expanded to include a variety of expenses relating to service animals specially trained to perform specific tasks for a patient with a severe mental impairment.

 

Donations and gifts (line 349 of Schedule 1) – As of January 1, 2018, the first-time donor’s super credit has been eliminated. As of February 27, 2018, registered universities outside Canada will no longer need to be prescribed in Schedule VIII of the

Income Tax Regulations. For more information on qualified donees, see Pamphlet P113, Gifts and Income Tax.

 

Tax on split income (TOSI) (line 424 of Schedule 1) – As of January 1, 2018, in addition to applying to certain types of income of a child born in 2001 or later, TOSI may now also apply to amounts received by adult individuals from a related business. Where TOSI applies, the disability tax credit can now be used to reduce the individual’s tax payable for the year. However, income that is subject to TOSI must now be added to the individual’s net income for the purpose of calculating various deductions, credits and benefits. For more information, see Form T1206, Tax on Split Income.

Ask your tax professional for more information on changes to tax laws/rules. Please refer to our current tax checklist for credit and deductions you may claim in the current year.

Important Dates