Reports suggest that Canadians on average pay 42.5% of their income in taxes. While it can be stressful to manage rent, mortgage payments, car payments, and food expenses, income tax is the biggest expense for most Canadians.
The government keeps changing the tax policies, sometimes as an effort to win favor with voters, sometimes to close tax loopholes. If you’re not aware of new tax changes, the chances are you would miss the opportunity to optimize your income in accordance with the latest amendments in tax policies. Failing to incorporate new tax rules, when filing your return, can even lead to penalties from the CRA.
Individual tax returns for any specific year must be filed by April 30 of the following year. As a responsible citizen, don’t wait for the deadline, plan ahead. You should be as informed and prepared as possible to reduce your tax bill and keep more of your hard-earned money. It’s a good idea to consult a financial planner to learn about tax-saving strategies that may apply to your financial circumstances. Let’s have a look at some of the tax changes for 2019:
Working Income Tax Benefit enhanced and renamed
For 2019 and subsequent taxation years, Canada Workers Benefit (CWB), which is a new version of the Working Income Tax Benefit, has been introduced. CWB is a refundable tax credit which is intended to help low-income workers. In 2018, under Working Income Tax Benefit, families and single individuals without children could get a benefit of $1,059 and $1,922 respectively. These amounts will be increased in 2019 under CWB.
Service animal expenses can be claimed
This credit applies to service animals trained to help individuals with certain disabilities such as epilepsy, blindness, deafness, and autism, or disability of arms and legs. The taxpayers can receive credit for the expense of obtaining a service animal and its training and veterinary care. Having animals that aren’t trained but can provide emotional support to people with certain health conditions doesn’t make you eligible for the credit. If you’re filing a tax return for a person who needs a trained animal to perform the task and help them fight the impairment, don’t forget to claim animal medical expenses.
Changes in the Voluntary Disclosure Program (VDP)
If you’re unfamiliar with VDP, it’s a program launched to encourage Canadians to be honest about their tax-related matters. The authorities have made some changes to the VDP program. If you haven’t been honest about your tax situation in the past, you can take advantage of this program to get relief from penalties or prosecution that you’d normally face. If you’re not sure how new tax changes can impact on your situation, talk to a financial advisor.
About Kewcorp Financial
Kewcorp Financial helps individuals and business owners take advantage of new tax changes and reduce their tax bill. As a reputable team of financial planners in Edmonton, we are ready to help you reduce your taxes. Contact us for more information!