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What's New For Tax Year 2018?
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Tax law changes that affect most taxpayers:
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- Climate Action Incentive
This is a new refundable credit that is available for every adult taxpayer who lived in Ontario,
Manitoba, Saskatchewan and New Brunswick (unless you were confined in prison for 90+ days in 2018).
- Medical Expenses
Eligible medical expenses have been expanded to include a variety of
expenses relating to service animals specially trained to perform specific
tasks for a patient with a severe mental impairment.
- Tax on split income (TOSI)
As of January 1, 2018, in addition to applying to certain types of
income of a child born in 2001 or later, TOSI may now also apply to amounts received by adult individuals from a related
business. This is a punitive tax with the highest tax rate to prevent so-called income sprinkles.
- Public transit amount
This federal credit was eliminated in July 1, 2017 and removed from 2018 federal Schedule 1.
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Provincial Tax Changes
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- British Columbia
The former amount for infirm dependants age 18 or older and caregiver amount have been replaced by the new
British Columbia caregiver amount, its eligibility is the same as federal caregiver amount. Once
you claim federal caregiver amount, the provincial credit will be claimed automatically. Healthy parents age 65+
are no longer eligible for the new care giver amount credit.
The children's fitness amount, children's fitness equipment amount, children's art amount and the education coaching
amount have been discontinued.
- Manitoba
The primary caregiver tax credit has changed.
The tuition fee income tax rebate, the advance tuition fee income tax rebate and the nutrient management tax credit have
been eliminated.
The odour-control tax credit has been eliminated, but unused carry forward amounts can still be claimed.
- Ontario
The Ontario tuition and education tax credits have been discontinued. Students can continue to carry forward unused
amounts to claim in a future year.
- Saskatchewan
The personal income tax rates have been reduced for all taxable income levels.
The tuition and education tax credits have been discontinued. Students can continue to carry forward unused
amounts to claim in a future year.
- Nova Scotia
The age amount, the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible
dependant have increased for individuals with a taxable income of $25,000 or less. The increase is phased out for taxable
income between $25,000 and $75,000. The software will calculate these credit automatically.
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Other Highlights
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Find out,
Tax Chopper
is your best choice!
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