Six Important Updates That Will Affect Your 2017 Tax Return

2017 was a momentous year for tax, and it seems 2018 is no different. Several key updates take center stage, causing Canadians to see and feel noticeable changes in the years to come. It’s important to understand what the changes are, their impact on us, and how we can plan ahead to get the most out of our tax returns. Read on to see how Canadian tax changes affect you and your particular situation. Here are six important updates to know before you file this year: New: Canada Caregiver Amount The Canada caregiver amount has replaced the family caregiver amount, the amount for infirm dependants age 18 or older (line 306), and the caregiver amount (line 315). If you are the caregiver of infirm dependants, you may be entitled to claim an amount of $2,150 in the calculation of certain credits, such as eligible dependant and the spousal amount. You could also claim an amount up to a maximum of $6,883 depending on the income of the infirm dependant. Eliminated: Federal Education and Textbook Amounts These amounts gave additional credits to students attending a post-secondary school based on the number of months they were enrolled in full-time or part-time study. On the tax return, they would be added to the tuition amount. These credits have been eliminated for 2017. The eligibility criteria for the tuition amount has been enhanced under certain conditions to include fees paid for occupational skills courses that are not at the post-secondary level. Eliminated: Federal Children’s Fitness and Arts Amounts These credits allowed you to claim fees paid for signing up your children (under 15) to fitness and arts programs. The maximum amounts you could have claimed were reduced in 2016; the credits have been eliminated for 2017. Eliminated: Federal Public Transit Amount You can claim your bus/subway passes you bought up until June 30, 2017. Any fees paid as of July 1, 2017, are not eligible due to the phasing out of this credit. New: Medical Expenses Individuals who need medical intervention to conceive a child are eligible to claim the same expenses as individuals with medical infertility. New: Disability Tax Credit Certification As of March 22, 2017, nurse practitioners have been added to the list of medical practitioners who may certify eligibility of a person for the DTC.

Have more questions about recent tax changes or how to get the most out of your tax return? Have questions? Contact me at info@ellacottcpa.com to get accurate answers to tough questions about your 2017 tax return.