2016 Income Tax Filing Returns are due on or before April 30, 2017.
For self employed individuals, 2016 Income Tax Filing Returns are due June 15, 2017 however any amounts owing are due on or before April 30, 2017. As a reminder, if you owed more than $3500 on last year’s return, you generally have to make installments in the following year. T4 returns for 2016 are due February 28, 2017.
There are many 2016 Income Tax Changes, below are a few that will affect many Ontario 2016 tax returns.
2016 Income Tax Changes That Will Affect Your Income Tax Filing
Principal Residence exemption. The 2016 income tax return will be the first year in which tax payers will be required to report the details on the sale of their primary residence. The real estate market is red hot and the government wants their taxes from investors and speculators. Did you sell you Principal Residence? Only owned one home? No worries!! Gains on your principal residence are still exempt however the government wants to know the details. If you sold a property this year, your calculated gain is most likely way higher than your taxable gain – let us get you the right amount and help you pay the least taxes.
End of the Children’s Sports and Children’s Arts tax credits. The government will gradually eliminate the $1000 Sports Credit and the $500 Arts credit brought in by the previous government. 2016 is a transition year where the amount’s will be cut in half to $500 and $250 for the Children’s fitness Tax Credit and the Children’s arts Amounts respectively. My family has enjoyed the benefits of this credit since it was introduced. The government felt that this credit rewarded those who could already afford sports and didn’t work to make sports more affordable for lower income Canadians.
Eligible Educator School Supply Tax Credit – attention teachers and educators. The government knows that teachers routinely supplement the board supplied materials with supplies purchased from their own pocket. I guess we’re lucky that our Prime Minister was once a teacher because there is up to $1000 in tax credits if you purchase supplies with your own money.
The Family Tax Cut has been eliminated for 2016 and future years.
As at July 2016, the Canada Child Benefit replaced the UCCB and the NCBs.
Express NOA or Notice of Assessment. CRA is now providing an express NOA for registered efilers such as our accounting office. We can provide your NOA as early as the next day.
Your TFSA contribution limit has been reduced to $5500.
Federal personal tax rate thresholds were increased by the rate of inflation. The government has proposed changes index these credits and brackets to inflation. Hopefully this will offset the tax creep we saw through fixed amounts. The personal tax exemption was raised to $11,474.
There have been many changes affecting your 2016 Income Tax Filing, If you’d like to discuss how these changes impact your return, call the Pickering office at 1-905-831-6383 or our Toronto office at 1-437-836-3586 or visit the CRA’s website.
James Abbott, CPA and Associates