Client Communication

Pre-Authorized Debit for Personal Tax Owing (PAD):

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 complete in Part G of the T183 form - pre-authorized debit agreement.

You can specify the account for which you prefer the pre-authorized debt to come from on the T183 or select an account the CRA may already have on file for you for direct deposit.

Please note that the CRA requires at least 5 business days to process the PAD. Therefore, if you choose to have your PAD taken from your bank account on April 30th, your return MUST be filed no later than April 24, 2018.

Going Paperless with CRA

If you have access to your 'My Account' with CRA, you can receive your communication from CRA with your email address by entering it in section F of the T183 form.

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.)

Follow the links and instructions for My Account:

New to Personal Tax - effective in 2017

1) Children's fitness & arts:

These credits have been eliminated starting in 2017.

2) Canada Caregiver Credit:

To simplify the process and to recognize the need to provide financial support to caregivers, a new Canada caregiver credit will provide a 15% non-refundable tax credit maximizing at $6,883 of expenses for the care of parents, brothers and sisters, adult children and other specified relatives who have infirmities. An additional tax credit up to $2,150 on expenses is available for the care of a dependent spouse, a common-law partner, or a minor child with infirmities. The tax credit will be calculated using a formula that reduces the credit dollar for dollar once the dependant's net income exceeds $16,163. The dependant will not be required to live with the caregiver in order for the caregiver to claim the new credit.

*The Canada Caregiver Credit will no longer be available in respect of non-infirm seniors who reside with their adult children.

3) Public Transit Tax Credit:

Budget 2017 proposes that the public transit tax credit be eliminated, effective as of July 1, 2017. Specifically, the cost of public transit passes and electronic fare cards attributable to public transit use that occurs after June 2017 will no longer be eligible for the credit.

4) Education and Textbook Amount:

Effective January 1, 2017, the federal education and textbook tax credits will be eliminated. This measure does not eliminate the tuition tax credit, and it does not affect the ability to claim the credits on your 2017 return.
For Ontario, the tuition credit, as well as the education and textbook amounts have been eliminated effective September 4, 2017. Amounts are eligible to be claimed for the months leading up to this.

5) Education and Textbook Amount:

The first-time donor super credit was eliminated as of the 2017 tax year.

Updates to Personal Tax in Recent Years

1) 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.

2) 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.

3) The 2017 cumulative lifetime capital gains exemption is $835,716.

Tax Planning

We haven't changed for a while but there are some tax planning tips over here: