The federal government unveiled its fourth budget on March 19, 2019, featuring a range of new and revised tax credits specifically tailored for Canadians and¬†major updates. Here, we highlight some of the key updates that will have the greatest impact on Canadians’ tax obligations in the coming year.

Major Updates

Exciting Updates in Canadian Budget: RRSP Home Buyers’ Plan, Education Tax Credit, Medical Marijuana, and Digital News Subscriptions

Get ready for some noteworthy changes in the Canadian budget! As of March 19, 2019, the RRSP Home Buyers’ Plan has raised its withdrawal limit from $25,000 to $35,000, giving home buyers a reason to celebrate.

In a bid to encourage lifelong learning, a new refundable tax credit will be introduced, assisting mature taxpayers by covering up to half of their training-related tuition costs. Here’s how it works: Canadians can accumulate $250 annually towards their tuition expenses, enabling them to utilize these funds to cover half of their tuition fees. For instance, if someone like Trisha has $1,000 in her account by 2023, she can claim up to $750 towards her $1,500 tuition fees, leaving $250 for future courses.

Taxpayers who possess medical prescriptions for marijuana need not worry about the change in its legal status. The government has confirmed that they can still claim the cost as a medical expense, providing reassurance to those who rely on this treatment.

In a digital age where news consumption has shifted, the government empathizes with the challenges faced by readers. To support the availability of quality journalism, a temporary non-refundable tax credit will be initiated. Eligible digital news subscriptions, belonging to Qualified Canadian Journalism Organizations, can be claimed for up to $500 in subscription costs annually, resulting in a maximum tax credit of $75 per year.

These updates bring exciting prospects for home buyers, learners, medical marijuana users, and avid news readers across Canada.

 

Home Buyers, Education, Medical Expenses, and Digital News Subscriptions

In the latest federal budget released on March 19, 2019, several significant changes have been introduced, impacting Canadians in various ways. Let’s take a closer look at some of the key updates:

  1. RRSP Home Buyers’ Plan Expansion: Homebuyers have a reason to rejoice as the withdrawal limit for the RRSP Home Buyers’ Plan has been increased from $25,000 to $35,000. This means that eligible homebuyers can now withdraw up to $35,000 from their RRSP to use towards the purchase of their first home.
  2. Encouraging Lifelong Learning: To support ongoing education, a new refundable tax credit has been introduced for mature taxpayers. This credit covers up to half of the tuition costs associated with training and education. Each year, eligible individuals can accumulate $250 into an account, and they can then use the funds in the account to cover up to 50% of their tuition expenses. This credit applies to taxpayers with a working income of at least $10,000 and up to the maximum tax bracket threshold for the year, which was $147,667 in 2019.
  3. Medical Expense Claims for Medical Marijuana: Despite the legalization of marijuana in Canada, individuals with medical prescriptions can rest assured that they can still claim the cost of medical marijuana as a medical expense. The government has confirmed that this expense remains eligible for tax deductions.
  4. Tax Credit for Digital News Subscriptions: In a bid to support journalism and media consumption, the government has introduced a temporary non-refundable tax credit for eligible digital news subscriptions. Under this credit, individuals can claim up to $500 in subscription costs per year, providing a maximum tax credit of $75 annually. The news outlet must belong to a Qualified Canadian Journalism Organization to qualify for the credit.

Major Updates

These updates aim to bring positive changes to Canadians’ lives, from home buying and education to supporting digital journalism and medical expenses.