Q: What’s new in the T1-2016 program?
A: The following describes some legislative changes which may mostly affect your 2015 personal tax:
Basic personal amount (line 300) – The amount has increased to $11,474.
Age amount (line 301) – The maximum amount has increased to $7,125.
Canada child benefit (CCB) – As of July 2016, the CCB has replaced the Canada child tax benefit (CCTB), the national child benefit supplement (NCBS), and the universal child care benefit (UCCB).
Family tax cut: The family tax cut has been eliminated for 2016 and later years.
Children’s arts amount (line 370) – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250.
Children’s fitness tax credit (lines 458 and 459): The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $500.
Eligible educator school supply tax credit : (lines 468 and 469) If you were an eligible educator, you can claim up to $1,000 for eligible teaching supplies expenses.
Sale of principal residence: The sale of a principal residence must now be reported, along with any principal residence designation, on Schedule 3.
Home accessibility tax credit (HATC) (line 398): If you are eligible for the disability tax credit, or you are 65 years or older, you can claim a maximum of $10,000 for eligible expenses you incurred for work done or goods acquired for an eligible dwelling in Schedule 12.
A qualifying renovation must allow you to gain access to, or to be mobile or functional within the dwelling or reduce the risk of harm within the dwelling or in gaining access to the dwelling.
Eligible expenses are:
• Your share of the cost of eligible expenses for common areas if you are living in condominium and co-operative housing corporations
• Building materials, fixtures, equipment rentals, building plans, and permits if you do the work yourself
• Paid work done by professionals such as electricians, plumbers, carpenters and architects
Tax-free savings account (TFSA): The amount that you can contribute to your TFSA every year has been reduced to $5,500.
Split income of a child under 18: The tax rate has increased to 33%.
Labour-sponsored funds tax credit (lines 413, 414, 411, and 419): The tax credit for the purchase of shares of provincially or territorially registered labour-sponsored venture capital corporations has been restored to 15% for 2016 and later tax years. The tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations has decreased to 5% and will be eliminated for 2017 and later tax years.
Investment tax credit (line 412): Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2017.
2016 Tax Brackets (Fed/ON)
• At $11,475 – 20.05%
• At $41,537 – 24.15%
• At $45,283 – 29.65%
• At $73,146 – 31.48%
• At $83,076 – 33.89%
• At $86,177 – 37.91%
• At $90,564 – 43.41%
• At $140,389 – 46.41%
• At $150,001 – 47.97%
• At $200,001 – 51.97%
• Over $220,000 – 53.53%
(Triple J provide tax planning services)