2018 Tax Policy Updates

Q: What’s new in the T1-2017 program?

A: The following describes some legislative changes which may mostly affect your 2017 personal tax:

Basic personal amount (line 300) – The amount has increased to $11,635.

Age amount (line 301) – The maximum amount has increased to $7,225.

Canada caregiver amount: The Canada caregiver amount has replaced the family caregiver amount, the amount for infirm dependants age 18 or older (line 306), and the caregiver amount (line 315).

Children’s fitness tax credit (lines 458 and 459): As of January 1, 2017, this credit has been eliminated.

Children’s arts amount (line 370): As of January 1, 2017, this amount has been eliminated.

ON479: The Ontario Children activity tax credit and healthy homes Renovation tax credits were eliminated.

Public transit amount (line 364): As of July 1, 2017, this amount has been eliminated. You can only claim public transit amount for the period of January 1, 2017 to June 30, 2017.

ON479: New Ontario Seniors public transit credit on line 6305. Maximum credit is $225 and only public services used from July 1, 2017 to Dec 31, 2017.

Tuition, education, and textbook amounts (line 323) : As of January 1, 2017, the federal education and textbook amounts have been eliminated. Eligible tuition fees paid for courses taken after 2016 at a post-secondary educational institution in Canada that are not at the post-secondary school level (for example, training in a second language or in basic literacy and numeracy) will also qualify for the tuition amount as long as the student is at least 16 years of age at the end of the year; and enrolled in the educational institution to obtain skills for, or improve the student’s skills in, an occupation.

Scholarships, fellowships, bursaries, and artists’ project grants exemption (line 130): The eligibility for the exemption has been enhanced under certain conditions to include scholarships and bursaries received for occupational skills courses that are not at the post-secondary level.

Donations and gifts (line 349): A gift of ecologically sensitive land cannot be made to a private foundation after March 21, 2017.

Medical expenses (lines 330 and 331): Individuals who need medical intervention to conceive a child are eligible to claim the same expenses as individuals with medical infertility. You can also request an adjustment to claim such medical expenses on any income tax return for the 10 previous calendar years. Payments for certain reproductive technologies are eligible, even if you do not have a medical condition that prevents you from conceiving a child.

Principal Residence: Address, Year of acquisition and Proceeds of disposition have been moved from S3 to T2091 form.

Investment tax credit (line 412): Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2018.

Labour-sponsored funds tax credit (lines 411 and 419): As of January 1, 2017, the tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations (LSVCC) has been eliminated. The tax credit for provincially registered LSVCC can still be claimed on lines 413 and 414.

 2017 Tax Brackets (Fed/ON)  
•    At     $11,635     –     20.05%
•    At     $42,201    –     24.15%
•    At     $45,916    –     29.65%
•    At     $74,316    –     31.48%
•    At     $84,404    –     33.89%
•    At     $87,557     –     37.91%
•    At     $91,831     –     43.41%
•    At     $142,353    –     46.41%
•    At     $150,000    –     47.97%
•    At     $202,800    –     51.97%
•    Over     $220,000     –     53.53%
(Triple J provide tax planning services)