New Changes to Personal Tax Returns

March 14, 2018

Personal tax credits and amounts are consistently changing from year to year. Please reach out to Bateman MacKay LLP with any questions you may have about these changes. Here is an outline of what may impact your personal tax return for calendar 2017:

Tax Credit Eliminations

The following tax credits were eliminated entirely:

  1. Effective January 1, 2017:
    • Children’s Fitness and Arts tax credits.
    • Education and Textbook tax credits. (Credits for tuition paid is still available)
  2. Effective July 1, 2017
    • The Public Transit Tax credit.
  3. Effective January 1, 2018: (Applicable for next year)
    • The First-time Donor's Super credit.

Revisions to Tax Credits/Reporting

The following revisions were implemented:

  1. Child Care Expense Deduction Limits:
    • Children under the age of seven at the end of 2017, up to $8,000 can be claimed.
    • Children between seven and 16 at the end of 2017, $5,000 can be claimed.
    • Children eligible for the Disability Tax Credit; $11,000 can be claimed.
  2. Adoption Expenses: The maximum amount of eligible expenses (in the tax year that includes the end of the adoption period for the child) for each adopted child has increased to $15,670.
  3. Sale of a Principal Residence: If an individual disposed of a principal residence in 2017, the principal residence designation section on the 2017 T1 Schedule 3 and T2091 must be completed.
  4. Canada Care Giver Credit: The Infirm Dependent, Caregiver and Family Caregiver tax credits have been replaced by the Canada Care Giver Credit. This 15% non-refundable credit is calculated as $6,883 but is reduced when the net income of the dependent is over $16,163.

Indexed Limit Increases

The following indexed limits have been updated:

  1. RRSP: The maximum contribution for 2017 increased to $26,010.
  2. TFSA: Annual contribution limit remains unchanged, at $5,500.
  3. Lifetime Capital Gains Exemption: For dispositions of qualified small business corporation shares in 2017, the lifetime capital gains exemption has increased to $835,716.

Payments & Benefits

Canada Child Benefit: For the payment period beginning in July 2018, the Canada Child Benefit will only see an indexation increase. Families making under $30,000 a year will get up to $533.33 monthly, per child under six and $450 for each child between six and 17. For families making above $30,000 a year, these benefits are reduced and families making over $200,000 a year will receive no benefit.

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