Along with the personal tax measures discussed in our previous two blogs - 2019 Federal Budget Commentary: Tax Changes for the Individual Canadian and 2019 Federal Budget Commentary: Personal Income Tax – Housing - the federal government is proposing a number of benefits, credits and provisions that will assist working individuals, especially those seeking to enhance their skills through training.
As is the case with most Federal Budgets, proposals have been made regarding sales and excise tax with a focus on health measures - as well as cannabis in light of new products being introduced to the Canadian market.
The 2019 Federal Budget proposes a number of changes that will affect individual Canadians, and their tax strategies for the year ahead.
With every new year comes a new federal budget. This year, the budget includes $22.8 billion in additional spending over the next five years for the enhancement of existing tax credits and incentives and the addition of new ones, additional resources for the Canada Revenue Agency (CRA) to recover unpaid taxes, new measures to reduce tax evasion and avoidance, improving savings plans for retirees and those with disabilities and introducing a national prescription drug plan.
Many Canadians, or at least the half that have taken the time to draft a will, often assume that once their will has been written up, they can put it out of sight and out of mind.
The problem is that drafting your last will and testament requires regular updating to reflect changes in your life. As a rule, you should review your will every three to five years to ensure that everything still applies to your current situation. In addition, if is important to review your will after any major life event.
As with every new year, 2018 and 2019 saw changes that will affect your tax planning strategy as both an individual and as a business owner.
To help you better understand the changes you should be considering when completing your 2018 tax return and planning for 2019, we have compiled them here for your review.
While many Canadians are focused on filing their 2018 tax return, it is important to also remember to plan and strategize for the year ahead.
To do this, you must first make note of the applicable tax brackets, credit rates and limitations, contributions and premiums that will apply to you and your specific situation in 2019.
Unlike tax deductions that reduce your taxable income, tax credits reduce your tax owing (your taxable income multiplied by the applicable tax rate). There are two types of tax credits – refundable and non-refundable.
A refundable tax credit means that the government will return the unused portion of your tax credit to you if your tax owing becomes $0 without using the full amount.
