To minimize stress and avoid making mistakes when filing your income taxes, it helps to plan well in advance. To aid in this preparation, here are some changes for 2019 and tips to keep in mind:
Canada Training Benefit
Continuing skills training and education are important for long-term success in today’s job market. The 2019 Federal Budget introduces the Canada Training Benefit that includes two key components:
- Canada Training Credit
- Targets Canadian workers who are 25-64 years old
- Automatically accumulates credits of $250/year, up to a lifetime limit of $5,000
- Income threshold is between $10,000 and $150,000 annually
- Credits can be applied to training fees at applicable universities and institutions beginning in 2020
- EI Training Support Benefit
- Income support for up to 4 weeks of paid leave at 55% of average weekly earnings (can be taken within a 4-year period)
- Accumulation of 600 hours of insurable employment is required to be eligible
BC Child Opportunity Benefit (BCCOB)
The new BCCOB goes into effect on October 1, 2020 and replaces the current BC Early Childhood Tax Benefit (BCECTB). The maximum BCCOB benefit is:
- $1,600 for a family’s first child
- $1,000 for a second child
- $800 for each subsequent child under the age of 18
The benefit amount is adjusted based on the family’s annual net income. It is reduced to zero if the family’s net income is over $80,000.
Student Loan Interest Relief
Effective February 19, 2019, all B.C. student loans will stop accumulating interest during the six-month non-repayment period (“grace period”). In addition, both the variable and fixed interest rates have decreased.
Tips for Income Tax Filing
Stay organized and prepare early: As you receive tax documents or collect tax-deductible receipts, keep them in a separate folder that you can refer to easily when you file your taxes. These include (but are not limited to):
- Previous year tax return and notice of assessment
- Records of tax installments made
- Salary pay stubs
- RRSP contribution receipts
- Charitable donation receipts
- Monthly investment account statements
- Investment account tax slips (including gain & loss summaries)
- Professional/advisory fees paid
- Medical and dental receipts
- Child care cost receipts
Keeping these documents organized throughout the year will reduce stress and save time next March and April!
Anthony Ma is an Associate Financial Advisor with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.
©2019 RGF Integrated Wealth Management Ltd., RGF Wealth Management Ltd., Member - Canadian Investor Protection Fund
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