Every year the Income Tax Act gets bigger (currently over 2,700 pages) and the personal T1 Return gets more complicated. The current Liberal government has announced their intention to simplify the Act by eliminating tax credits. Bill Curry from the Globe and Mail recently published an article discussing this plan.
The government is cutting taxes, but not quite as much. They will be eliminating child credits and the family tax cut which means that people who benefited from those are now paying more in taxes. The good news is that they have made it simpler by getting rid of a few other federal credits too like education-related ones and textbook assistance programs for students so while you might end up paying slightly higher tuition or buying your textbooks with cash instead, at least this time around you don’t need to worry about filing an income splitting form on April 30th!
- Age amount – taxpayers over 65 can save up to $1,055
- Volunteer firefighter amount – worth $450 to volunteer firefighters or search and rescue personnel
- Public transit amount – Calgary Transit passes cost $99 per month, so a family with two riders could save $356
- Adoption expenses – up to $15,255 in expenses, giving a tax savings of $2,288
- Caregiver amount and amount for infirm dependants – up to $1,005 for people taking care of a family member in need
- Home buyer’s amount – first-time home buyers can save up to $750 in taxes
- Canada employment amount – anyone with a job in Canada gets $172 in tax savings
- Pension amount – up to $300 in credits if you are receiving qualifying registered pension income
- Medical expenses
- Charitable donations
- Student loan interest credit
- Tuition amount
I’m sure some of those credits hit home pretty hard, while others don’t really mean a thing to you. The thing to remember is when the government “increases revenue” in order to balance the budget, someone is paying for it.
Pi Business Solutions can help. Our team of professionals specialize in helping people file their taxes and get the best possible refund. Income tax consultants are experts in the field of taxation. They can help you understand what is taxable and how to file your taxes correctly. If you want a professional opinion on what deductions or credits might be available to you, they’ll have the answers for you.
You deserve an expert on your side when it comes to filing your taxes this year. That’s why we offer free consultations where one of our experts will walk you through everything you need to know about tax preparation and filing. It doesn’t matter if you’re self-employed or have a complicated tax situation, we’ll be there every step of the way!