With numerous changes since the last tax season, it’s crucial to stay informed about how they can affect your tax filing in provincial tax changes. At times when Canadian taxes undergo modifications, we’re committed to providing the support you need. Count on us to handle the heavy lifting and guide you through the intricacies of new rules and their potential impact on your tax situation.
Provincial Tax Changes: What You Need to Know
The Ontario Edit:
Ontario introduces the Low-Income Individuals and Families (LIFT) credit, aimed at exempting minimum-wage earners from provincial tax. Eligible taxpayers can expect an average refund of $450, providing much-needed financial relief.
Childcare Access and Relief from Expenses (CARE) refundable tax credit is another positive change for Ontario parents and caregivers. Those with a net family income below $150,000 will see larger refunds based on their family income and eligible childcare expenses. Approximately 300,000 households are set to benefit, with an average of $1,250 per family.
The Low Down on New Brunswick:
New Brunswick reinstates the tax credit for tuition fees, reversing the previous elimination. Moreover, the credit will apply retroactively, allowing students to claim tuition fees paid in 2017 and 2018 on their 2019 tax return, providing additional financial relief.
British Columbia in a Snapshot:
While the education credit is eliminated in British Columbia for 2019, students can still claim tuition fees as eligible expenses, helping to reduce their tax burden.
The 411 on Alberta:
The provincial carbon tax in Alberta is removed, resulting in the elimination of the Alberta Leadership Adjustment Rebate for lower-to-middle income taxpayers. However, starting January 2020, a federal carbon tax, known as the Climate Action Incentive, will be imposed, benefiting all taxpayers in Alberta.
Climate Action Incentive Beyond Alberta:
Taxpayers in Ontario, Manitoba, and Saskatchewan will experience significant increases in the Climate Action Incentive provided by the federal government. The amounts vary based on family composition and year, as outlined in the table below.
As tax knowledge is essential for optimizing your return, we’re here to help you navigate these provincial tax updates and make the most of your tax situation.
(Note: The table is not displayed here as it’s better suited for a visual format.)