Tuesday April 30, 2019 is the due date for 2018 personal income tax returns. Self-employed individuals have until Monday, June 17th to file their 2018 personal tax returns, but any amounts owing must be paid by April 30th.
Some types of income are not taxable, such as inheritances, gifts and most lottery winnings, and some must be included in the tax return even if they are not taxable, such as GIS and workers' compensation benefits. The latter affect income-tested benefits even though they are not included in taxable income.
Every person age 18 or older should file a tax return to establish their eligibility for the GST/HST credit, which is a non-taxable quarterly payment. A single person with net income of up to $44,000 is eligible for the credit. Thresholds and credit amounts increase as numbers of dependants increase.
There may be circumstances which require you to file a tax return, including the sale of your principal residence. You should file a tax return even if you have little or no income, to receive refundable tax credits, GST/HST credit, and to establish eligibility for other government programs and services.
The tuition and education tax credits have been eliminated now in NB, ON and SK. However, it is only ON that no longer allows the carry-forward of unused credits from another province when a taxpayer moves to Ontario.
If you previously requested voluntary tax deductions from your OAS or CPP in order to avoid having to make income tax instalments, you can request a change through your My Service Canada Account, or by completing and submitting a form.
If your income circumstances have changed such that you think the clawback of your OAS should be reduced or eliminated, you can request a change by completing form T1213OAS and submitting it to Canada Revenue Agency.
Contributions made Jan-Mar 2019 must be reported on your 2018 tax return, even if they are not being deducted for the 2018 tax year.
You can borrow from your RRSP to buy or build a home, or to finance full-time training or education. Make sure you complete Schedule 7 if you have made repayments to the HBP or LLP, otherwise you lose RRSP deduction room.
Capital losses can normally only be used to reduce or eliminate capital gains. However, they can be carried back to any of the 3 preceding taxation years or carried forward indefinitely.
The Federal small business corporate income tax rate is reduced to 9% effective January 1, 2019. The Quebec and PEI small business rates are also reduced for 2019, and Manitoba's small business limit is increased.
Due to the 2019 final reduction in the gross-up rate for non-eligible, or "regular" dividends, the dividend tax credit rates for 2019 are automatically revised for most provinces and territories.
Ask the experts at Copetti & Co for help with all your tax planning and reporting needs.