Each tax year brings new changes, benefits, limits and so much more. Everyone is affected, from personal returns to small business accounts, low-income families to pensioners. More than ever, you may need someone to help you navigate the ins and outs of your 2018 income tax year return. Keenans Accounting Service is always on top of the latest changes from the Canada Revenue Agency and ready to help you and your business get the most out of your return. Let’s take a look at some of the changes for this tax year and how they could affect you.

Climate Action Incentive

The Climate Action Incentive payment is a new benefit available to residents of Ontario, Saskatchewan, Manitoba and New Brunswick. Introduced by the Government of Canada to put a price on carbon pollution, a family of four could receive over $600. The amount of the tax credit depends on family size and location but Ontario families will see benefits closer to the $300 range.

Small Business Tax Rate

The federal small business tax rate applies to business income up to $500,000 dropped to 9% on January 1, 2019. On the other hand, the government has tightened the rules on passive income. Businesses with less than $50,000 in annual passive income can claim the full $500,000 at the small business rate. For some business owners, these changes will cancel each other out.

 

Provincial Tuition Credits

Post-secondary students in Ontario, Saskatchewan and New Brunswick are no longer eligible to claim a provincial tax credit for their tuition expenses. However, they can still claim a federal tax credit on 15 % of eligible tuition.costs to help offset their tax bill.

 

Facts at a Glance

• March 1, 2019, is the deadline for contributing if you want to get a tax refund for your RRSP (Registered Retirement Savings Plan) contribution with your 2018 return.
• If you owe money on your taxes, April 30, 2019, is the deadline to file your return and pay any balance without penalty.
• If you are self-employed, you and your spouse or common-law partner have until June 17, 2019, to file. Note that interest will start accruing as of April 30 for any balances owed.
• The EFile is system is now open, allowing you to get your returns processed faster. The sooner you file, the quicker your return will usually come.  

 

These are just a small example of the many changes that are in effect this year, with even more coming for next year’s tax season. Avoid the stress and save your valuable time by trusting your tax returns to Keenans Accounting Service. Call and book your appointment today at 705-526-7628.

 

Keenans Accounting Service was founded in 1998 to serve Midland and the surrounding area. We’re a professional team who are dedicated to helping you define your bottom line. We keep a keen eye on your numbers so you don’t have to.