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NEW TAX CHANGES FOR 2016 TAX YEAR !



List of major changes for your 2016 tax return 

Below is a list of major changes that may affect your tax returns effective 2016 and beyond.

I have included the links to the CRA website which give more details on these credits.  Please review this list and contact us for any assistance you may need regarding your specific tax situation and let us help you maximize your tax benefits.

Children’s fitness amount 

The maximum amount of eligible fees for each child (excluding the supplement for children with disabilities) has been reduced to $500.  Both will be eliminated in 2017 and later tax years. Line 458 and 459

Children’s arts amount 

The maximum amount of eligible fees for each child (excluding the supplement for children with disabilities) has been reduced to $250.  Both will be eliminated in 2017 and later tax years. Line 370

Medical expenses 

Costs for the design of personalized therapy plans for persons eligible for the disability tax credit and costs for service animals used to help manage severe diabetes are now eligible as medical expenses. For more information, see Guide RC4064, Medical and Disability Related Information. For more information see lines 330 and 331.

Home accessibility expenses

You can claim a maximum of $10,000 for eligible expenses you incurred for work done or goods acquired for an eligible dwelling. Line 398

Eligible educator school supply tax credit

If you were an eligible educator, you can claim up to $1,000 for eligible teaching supplies expenses. For more information see lines 468 and 469.

Family caregiver amount for children under 18 years of age

The amount for children under 18 years of age has been eliminated and replaced by the enhanced universal child care benefit. Line 367 is now used for the family caregiver amount for children under 18 years of age. See Line 367

Investment tax credit 

Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2015. For more information see line 412.

Lifetime capital gains exemption

For dispositions in 2016 of qualified small business corporation shares, the lifetime capital gains exemption (LCGE) limit has increased to $824,176 See Guide T4037, Capital Gains.  For more information see line 254.

Interest paid on your student loans

Interest paid on a Canada Apprentice Loan amount for registered Red Seal apprentices can be claimed on this line. For more information about the Canada Apprentice Loan, go to servicecanada.gc.ca.  Line 319

Investment tax credit

Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2016.  Line 412

Form T1135, Foreign Income Verification Statement

This form has changed to introduce a simplified reporting method for individuals who own specified foreign property with a total cost of less than $250,000 throughout the year. See Form T1135.

Tax-free savings account (TFSA)

The TFSA annual contribution limit has been reduced to $5,500. TFSA Limits

Dividend tax credit

The rate that applies to “other than eligible dividends” has changed for 2016 and later tax years. For more information see lines 120  and 425.  Please contact your accountant for help with this.

GST/HST credit 

You no longer have to apply for the GST/HST credit. When you file your return, the CRA will determine your eligibility and tell you if you are entitled to receive the credit.  For more information see GST/HST credit

 

Important Dates