VANCOUVER, British Columbia, Jan. 31, 2019 (GLOBE NEWSWIRE) -- It’s the end of January and the tax season is just around the corner! You have until April 30 to file your personal income tax return. Here are four tax changes that can affect your return this year:
1. Reap the benefits of the Canada Child Benefit
As of July 2018, the Canada Child Benefit (CCB), which provides parents with a tax-free monthly payment to help with the cost of raising children, is being indexed to keep pace with the cost of living. The federal government increased the CCB by 1.5 per cent in 2018, and is expected to increase to 2.0 per cent this year.
The payments are calculated based on your previous year’s income tax return. For 2019, the threshold for households receiving the full CCB amount will be raised to $30,450 in annual income from 2018. The maximum benefit for 2019 is $6,639 (previously $6,496) for children under the age of six, and $5,602 (previously $5,481) for children aged 6 to 17.
2. Can’t take credit for taking transit
The federal public transit tax credit was eliminated in June 2017, which meant that when you filed your 2017 tax return last year, you could still claim credit for the first half of 2017. In other words, there’s no need to keep transit receipts from 2018.
3. Work while on claim
Working while on an Employer Insurance (EI) claim now applies to both sickness and parental benefits. Let’s say you’re on parental leave and are earning money from your lifestyle blog. Will you still receive your parental leave benefits on top of your part-time earnings? The answer is yes – but there will be some deductions taken off your parental benefits.
Similar to what happens when you work part-time while receiving EI benefits, some adjustments will be made. For every dollar you earn from work, 50 cents will be subtracted from your benefits.
4. Know where you fall in the income tax bracket
Every year, the federal and provincial governments update the income tax brackets. For 2018, the tax rates are as follows:
Federal Income Tax Rates:
- 15 per cent on the first $46,605 of taxable income, +
- 20.5 per cent on the portion of taxable income over 46,605 up to $93,208, +
- 26 per cent on the portion of taxable income over $93,208 up to $144,489, +
- 29 per cent on the portion of taxable income over 144,489 up to $205,842, +
- 33 per cent of taxable income over $205,842.
B.C. Income Tax Rates:
- 5.06 per cent on the first $39,676 of taxable income, +
- 7.7 per cent on the portion of taxable income over $39,676 to $79,353, +
- 10.5 per cent on the portion of taxable income over $79,353 to $91,107, +
- 12.29 per cent on the portion of taxable income over $91,107 to $110,630, +
- 14.7 per cent on the portion of taxable income over $110,630 to $150,000, +
- 16.8 per cent on amounts over $150,000.
Be sure to visit CPABC’s RRSP and Tax Tips at rrspandtaxtips.com in February 2019 for updated tips on income tax filing for the 2018 tax year.
NOTE TO JOURNALISTS: CPAs are available for interview.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these RRSP tips are complex. This is not intended as tax advice, and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 36,000 CPA members and 5,000 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
For more information or to arrange an interview, contact:
Vivian Tse, Public Affairs Manager
604.488.2647
vtse@bccpa.ca