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2017 Income Tax Updates

As the Canada 2017 Tax Filing Season begins, Canadian taxpayers should be aware that in 2016 the Canada Revenue Agency (CRA)  introduced several changes to tax benefits, credits and deductions, effective for the 2017 tax season.


Oswa Tax Solutions have prepared a brief overview of these major changes that you should be aware of below.

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New CRA Benefits from 2017 onward

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  • Eligible Educator School Supply Tax Credit  
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  • Home Accessibility Tax Credit
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  • Canada Child Benefit (CCB)
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        Other CRA Tax changes
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  • Income Splitting Tax Credit

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  • Children's Fitness Tax Credit

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  • Children's Arts Tax Credit 

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  • Mandatory Filing Of Form 2091 To Claim Principal Residence Exemption

Qualifying teachers, and other educators may now be able to claim a 15% tax credit on up to $1,000 of qualifying teaching supply expenses incurred during the year. Additionally, this is a refundable tax credit, i.e. if you have ‘zero’ tax liability you could receive an amount equal to the 15%. The credit is available for 2016 and subsequent taxation years.

In 2016, the CRA introduced the Home Accessibility Tax Credit, which allows qualifying taxpayers to claim certain home renovations for disabled persons incurred on an eligible residence as a tax credit on their tax return. A maximum of $10,000 per year in eligible expenses can be claimed.

The new Canada Child Benefit was introduced in 2016 replacing the Canada Child Tax Benefit (CCTB), Universal Child Care Benefit (UCCB), and National Child Benefit Supplement (NCBS). It is a monthly tax-free benefit to qualifying families with children below age 18.

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The CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. Parents raising children with a disability can also claim Canada Disability Tax Credit and the Child Disability Benefit in addition to the CCB.

In 2016, the CRA introduced the Home Accessibility Tax Credit, which allows qualifying taxpayers to claim certain home renovations for disabled persons incurred on an eligible residence as a tax credit on their tax return. A maximum of $10,000 per year in eligible expenses can be claimed.

The Children Fitness Tax Credit has been reduced from $1,000 to $500. However, for children with disability the benefit amount remains the same at $1,000.

The Children’s Art Tax Credit has also been reduced to $250 from the earlier amount of $500. The maximum for a child with a disability will be $750.

To prevent taxpayers from claiming the ‘Principal Residence Exemption’ multiple times for several properties without fulfilling the required eligibility conditions, the CRA has updated the ‘Principal Residence Exemption’ regulations. Beginning with the 2016 returns, even though the sale of a principal residence remains tax-free it will be mandatory to file CRA Form T2091 to report the sale.

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