Client Communication

Balances owing automatic payment from your bank account:

CRA now has the ability to withdraw a specified amount from your bank account on the date you specify (April 30th most likely).

To do this You need to fill in Part C of the T183 form.

The pre-authorized debit will come from a bank account
1. That the CRA already has on file for you.
2. That you use or wish to use for direct deposit
3. You set up by way of your t183
4. That you establish by way of CRA's "My Account"


Going Paperless with CRA

If you have 'My account' with CRA.

You can receive your communication from CRA with your email address by entering it in section C of the T183 form.

Follow the links and instructions for My Account:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html


NEW Express Notice of Assessment:

Express Notice of Assessment can be established if are registered for My Account and online mail.

My account with CRA is like online banking and has a lot of information about your taxes. We have this information for all our clients as well.

This has such information about your tax status such as:
- Instalments
- Amounts owing
- Notices of Assessment
- Income from prior years
- Tax slips (T4s, RRSPs, etc)


New to Personal Tax - effective in 2016

1) Children's fitness & arts:

Effective for the 2016 taxation year, the maximum eligible amount per child has been reduced to $500 from $1,000 for the children's fitness tax credit and to $250 from $500 for the children's art tax credit.

2) Teachers - teaching supplies credit:

Eligible elementary and secondary school teachers, as well as early childhood educators, are now entitled for a refundable tax credit worth 15% of teaching supplies. A maximum of $1,000 can be claimed for a maximum tax credit of $150 per year. Receipts for the supplies being claimed, as well as a letter from your school's principle, are required to claim this credit.

3) Mandatory reporting of sale of principle residences:

Starting with the 2016 taxation year, individuals who sell their principle residence will have to report the sale on their tax return. Reporting will be required for sales that occur on or after January 1, 2016 but there is likely no tax implications.


Updates to Personal Tax in Recent Years

1) If you have a dependent that is eligible for the disability credit, you may be eligible for the Family caregiver amount. It is a non-refundable tax credit which is being increased to $2,040.00 for 2014.

2) The Government of Canada is phasing out cheques and moving to direct deposit payments. This means that paper cheques will no longer be issued or mailed for tax and benefit programs as of April 2016. To enroll for direct deposit or to update your banking information, go to www.cra.gc.ca/directdeposit or call 1-800-959-8281

3) The 2016 cumulative lifetime capital gains exemption is $824,176.

4) If you have over $100,000 in specific foreign assets, you are subject to file form T1135. The form has been revised for 2014 to eliminate the option to not report any information on any investments which are included in T3's or T5's at the end of the year. However; the transitional method for foreign investments held through a Canadian brokerage has been kept for 2014 and future tax years.

5) Please note that Ontario has added a new tax bracket effective for 2014. Taxable income in excess of $220,000 (previously $514,000) will result in significantly higher taxes payable provincially than in previous years.

6) The child care expense deduction is currently $8,000 per child under the age of 7 and $5,000 per child between 7 to 16. For children with a recognized disability, up to the age of 16, the deduction is $11,000.


Tax Planning

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