As we dive into tax season, we want to give you an update on what’s new and different this year.
The biggest change this year is a new tax credit called the Climate Action Incentive. We've got the lowdown on that, as well as a list of key numbers you should be aware of. We'll also brief you on all the ways to pay your taxes and what you can expect if you're working with us this year.
Climate Action Incentive
This year, residents of Alberta, Saskatchewan, Manitoba and Ontario could be eligible for a new tax credit - the Climate Action Incentive credit, which comes from carbon tax revenue.
If you live in a small or rural area, you get a 10% supplement. You can claim for your dependents as well - check out all the specific rules. To claim it, you need to file your tax return, and complete a Schedule 14. Only one person from each household may claim the credit (you or your spouse/common law partner).
The maximum amount you can claim depends on your personal situation, but here's a chart of the maximums, not including the small or rural supplement:
| Province | Basic amount | Spouse or common-law partner amount |
Qualified dependant amount |
Single parent's qualified dependant amount |
|---|---|---|---|---|
| Alberta | $444 | $222 | $111 | $222 |
| Saskatchewan | $405 | $202 | $101 | $202 |
| Manitoba | $243 | $121 | $61 | $121 |
| Ontario | $224 | $112 | $56 | $112 |
A few key figures for the year
Seniors collecting Old Age Security (OAS) should be aware that any net income exceeding $77,580 triggers clawback. You will have to pay back 15% of any income over the $77,580 threshold.
The mileage rates for 2019 are $0.58 per kilometre for the first 5,000 km and $0.52 over and above. Make tracking your kms easy with MileIQ.
The maximum CPP contribution for 2019 is $5,498. Read more about CPP enhancement and what to expect paying going forward.
What will the Canada Child Benefit (CCB) be for you this year? The new Toolkit page of our website has a Calculators section, one of which helps you calculate what you should expect for CCB.
Accelerated CCA on new equipment
As an incentive for Canadian businesses to invest in equipment, for a limited time, the write-off your business will get in the first year is increasing by as much as triple! Equipment purchased after November 21, 2018 will qualify. This could be a good tax planning opportunity, let us know if you want to chat about it. Also be sure to let us know if you have purchased anything during the year that might qualify.
How to pay your taxes
Visit the CRA's website for all the details on the options for paying your taxes. The tax payment deadline is April 30 (even if you're a sole proprietor or farmer).
We recommend using personal online banking. Use the PAY BILLS function. Select "ADD A PAYEE" and search for the CRA [current year] tax owing.
You can also mail a cheque payable to "Receiver General for Canada" to:
PO Box 3800 STN A
Sudbury ON P3A 0C3
To pay at your bank, you will need your original remittance voucher that the CRA sends out with your Notice of Assessment. You need to file early to get your remittance voucher in time to pay by April 30.
Did you know you could also pay at the post office?
Your CRA online account is a great resource. Make sure you have one set up. You can log in here. Once in, you can do the following and more.
- See the status of your tax return.
- See your notice of assessment.
- Receive mail from the CRA.
- See your RRSP and TFSA contribution limits.
- See home buyer's and lifelong learning plan.
- Pay by pre-authorized debit.
- Apply for and view the Canada Child Benefit.
- Submit documents.
- File a GST/HST rebate.
Learn more about Alberta Tax Brackets.
File your tax returns on time!
If you don't file on time, the CRA may put a stop payment on any government income you're receiving: Canada Child Benefit (CCB), GST/HST Credit, Guaranteed Income Supplement (GIS), and Working Income Tax Benefit (WITB) payments. And these are just the federal programs, provincial programs may also be stopped.
Doing your taxes with True North
Here's what it's going to look like getting your taxes done with True North Accounting this year:
Step 1: Checklist
In early March we'll email out a smart checklist - this is our new tool for communicating and delivering documents. It's hosted by a company called Karbon and it's so much more secure than email, especially documents with sensitive info.
The first task on the checklist is a link to an intake questionnaire we've created. Other tasks have templates attached to the request: rental property, farm or business income. There is also a template for you if you have extensive medical receipts. When you've ticked all the tasks as complete, we get started on your tax return.
Step 2: Tax return review
Step 3: Sign-off and e-filing
If you have questions about any of these changes or how you can capitalize on them, please get in touch! Make this a stress-free tax season and hire us to do your corporate and personal taxes this year.
Read more about Personal Tax topics that may be helpful to you and your small business.
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