News

Individuals and Families

 

Universal child care benefit (UCCB)- The UCCB has increased to $160 per month for each qualified dependant under 6 years of age and there is a new benefit of $60 per month for each dependant aged 6 through 17. For more information see Universal child care benefit (UCCB)

Child care expenses- The maximum limit per child has increased by $1,000.  See Form T778, Child Care Expenses Deduction for 2015.  For more information see line 214.

Family caregiver amount for children under 18 years of age- The amount for children under 18 years of age has been eliminated and replaced by the enhanced universal child care benefit.  Line 367 is now used for the family caregiver amount for children under 18 years of age.  For more information see line 367.

Family tax cut-  For 2014 and later years, the calculation for the family tax cut has been revised to allow unused tuition, education, and textbook amounts transferred from a spouse or common-law partner.  See line 15 of Schedule 1-A, Family Tax Cut.  For more information see line 423.

Children’s fitness tax credit- The children’s fitness tax credit is now a refundable credit.  For more information see lines 458 and 459.

 

Interest and investments

 

Other deductions – The minimum amount that must be withdrawn each year from a registered retirement income fund (RRIF), variable benefit money purchase registered pension plan (RPP), and pooled registered pension plan (PRPP) has been reduced. If you have withdrawn more than the reduced 2015 minimum amount, all or part of the excess may be eligible to be re-contributed to a RRIF, RPP, account under a PRPP, or to buy a qualifying annuity and deducted on line 232. For more information see Guide T4040, RRSPs and Other Registered Plans for Retirement.

Capital gains deduction – The lifetime capital gains exemption for dispositions of qualified farm or fishing property made after April 20, 2015 has increased to $1,000,000, resulting in a capital gains deduction limit of $500,000. For more information see line 254 and Guide T4037, Capital Gains.

Interest paid on your student loans – Interest paid on a Canada Apprentice Loan amount for registered Red Seal apprentices can be claimed on this line. See line 319. For more information about the Canada Apprentice Loan, go to Service Canada.

Investment tax credit – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2016. For more information see line 412.

Form T1135, Foreign Income Verification Statement – This form has changed to introduce a simplified reporting method for individuals who own specified foreign property with a total cost of less than $250,000 throughout the year. For more information see Form T1135.

Tax-free savings account (TFSA) – The TFSA annual contribution limit has increased to $10,000.

 

Other changes

Repeated failure to report income penalty – We may now charge you this penalty only if the amount of income you failed to report on your return was $500 or more. The calculation of the penalty has changed. For more information see Interest and penalties.

Minimum Wage in Ontario is going up from $11 an hour to $11.25 an hour, effective October 1.

 

The Minimum wage rate for liquor servers, homeworkers and students has also increased.

 

The rate for liquor servers rose to $9.80 from $9.55 per hour, while the student rate increased from $10.30 to $10.55.  Homeworkers will receive $12.40 per hour, compared to the previous rate of $12.10.

Ontario Minimum Wage

 

Minimum Wage

At Sudbury East Bookkeeping & Tax Services Inc. We want our clients to have the most convenient and secure payment options available when we provide on-site services.  That is why we are pleased to announce We Now Accept Visa and MasterCard payments quickly and securely on the go Thanks to PAYd.

A recipient can deduct, on line 221 of their income tax and benefits return, legal fees incurred to:

– collect late support payments;
– establish the amount of support payments from their current or former spouse or common-law partner;
– establish the amount of support payments from the legal parent of their child (who is not their current or former spouse or common-law partner) where the support is payable under the terms of a court order; or
– try to get an increase in support payments.
A recipient can also deduct, on line 232 of their income tax and benefit return, legal fees incurred to try to make child support payments non taxable.

 

A recipient cannot claim legal fees incurred to:

– get a separation or divorce; or

– establish, negotiate, or contest the amount of support payments; or

– establish child custody or visitation rights.

Legal fees paid to collect a lump-sum payment, which does not qualify as a support payment are not deductible

 

Supporting documents

When you file your income tax and benefit return, do not send any documents. Keep them in case we ask to see them.

However, if we ask for receipts, acceptable receipts must indicate your name, the date of payment, and the amount you paid.

Any of the following receipts may be accepted to support your claim:

  • cancelled cheques or cheque images (you must submit legible photocopies of both sides of the cheque);
  • bank and employer statements if they indicate a transfer of funds from the payer’s account or paycheque to either the recipient’s account or to a provincial agency and the amounts are equal or less than the amounts specified in the court order or written agreement;
  • statement or letter from the maintenance enforcement program (for example, provincial agency) supporting the actual amount of support paid under the court order or written agreement; or
  • signed receipts from the recipient showing the total amount paid in the year.