Tax Changes That May Affect You

Here are highlights of some changes to be aware of for the new 2016 tax year:

 

Enhanced Universal Child Care Benefit (UCCB)

  • The UCCB is being replaced by a new, tax-free Canada child tax benefit later this year. However, families will need to account for the UCCB they received in 2015 when filing their 2015 tax returns as the benefit is taxable.
  • In 2015, families received $160/month for each child under 6 years old, and $60/month for each child aged 6 - 17. The amounts for the benefit meant to replace the UCCB are said to be released in this year's budget, which will be released on March 22nd.

New Tax Brackets

  • Earnings between $45,283 - $90,563 - the federal marginal tax rate will decrease from 22% to 20.5%.
  • Earning more than $200,000 - the federal marginal tax rate will increase from 29% to 33%.

Highlights of some changes to be aware of that will affect your 2015 tax filing:

Child-Care Expenses

  • Parents can now claim $8,000/child under 6 years for child-care expenses, which has increased from $7,000/child and $5,000/child for children between 7 - 16 years old.

Child Fitness and Arts Tax Credit

  • The child fitness tax credit has been converted from a non-refundable to a refundable credit.

Tax-Free Saving Accounts (TFSA)

  • The contribution limit for Tax-Free Saving Accounts is $10,000 for 2015. Under proposed legislation, this limit will be reduced to 5,500 for 2016.

MYCRA App

  • A mobile app that allows you to view your Notice of Assessment (NOA), tax return status, benefit and credit information, RRSP And TFSA contribution room.

Auto-Fill My Return

  • This feature will fill in many of the boxes if you use electronic software to prepare your return. If you have signed up for CRA MyAccount, you just need to sign in and agree to a download. Information that is downloaded includes T4s, T4As, T5s and RRSP contributions.

Online Mail

  • This is a quick, easy and secure way to get statements such as your NOA online instead of in the mail. You can register by providing CRA with your email address on your income tax and benefit return or register directly online at www.cra.gc.ca/myaccount.

These are just some of the changes to be aware of. For additional information, please visit cra-arc.gc.ca or contact us through This email address is being protected from spambots. You need JavaScript enabled to view it. or call us at (306) 737-2267.