There are many tax issues for students and/or their parents, such as eligibility for tuition, education and student loan interest tax credits (some of which have been eliminated), private school tuition fees, deducting moving expenses, and child care expenses.
US Federal Estate Tax May be Payable by Canadians
A U.S. federal estate tax return must be filed if a deceased Canadian resident who is not an American citizen owned U.S.-situated assets exceeding $60,000 US in fair market value at the time of death, including US stocks held in a Canadian brokerage, even if held in RRSPs or other registered accounts. However, the US Tax Cuts and Jobs Act (TCJA) amended the basic exclusion so that if your total worldwide estate in 2018 is less than $11.18 million US, you will probably not have to pay any US estate tax.
Voluntary Disclosure Program (VDP) Changes
Changes were made to the VDP effective March 1, 2018. A new "Limited Program" now applies to taxpayers who have intentionally avoided their tax obligations.
Financial Planning / Registered Plans / Investing - How are RRSPs and RRIFs Taxed at Death?
When the annuitant of an RRSP or RRIF dies, the fair market value of the account at death is included in the income of the deceased for the year of death. When these accounts have named beneficiaries, no tax is withheld when the account is paid to the beneficiary, so the estate should be planned to make sure funds are available besides those accounts, to pay any tax liability. However, the named beneficiaries can be held liable for taxes unpaid by the estate.
Business, Employers, Employees
CPP Contributions on Self-Employed Earnings Where No Tax Return Filed After 4 Years
When a tax return which includes the reporting of self-employed earnings is more than 4 years late in being filed, the contributions required on those earnings are deemed to be zero, and future benefits will be reduced related to those earnings. There can be penalties payable for failure to file a return of self-employed earnings, as well as for late tax returns.
Minimum Wage Rates, Labour Laws and Employment Standards
Employers and employees should be aware of minimum wage rates and current employment standards, including those regarding vacation and statutory holiday pay, rest periods, parental leave, and many other standards. Most provinces have had a minimum wage rate increase already in 2018. Alberta, Manitoba and Saskatchewan will have increases effective October 1, 2018.
If you need help understanding and reporting to CRA, contact Copetti & Company for expert assistance.