Canadian Tax Highlights and Changes
Highlights of current tax-related events from Canada Revenue Agency, along with major tax changes for the 2009 tax year.
Highlights
Haiti Earthquake
Canadians wanting to help Haiti disaster victims can visit CRA's Earthquake in Haiti page for tax information and links.
New Payment Method
CRA has developed a new method for receiving online remittances of income tax, GST/HST, payroll deductions, non-resident's withholding tax, etc. You can use this service if you have access to online banking at a participating financial institution (currently Bank of Montreal, Scotiabank, Royal Bank, and TD Canada Trust). Your transaction total is subject to the daily limit for online banking you have established with your financial institution. Visit My Payment to get started!
Home Renovation Tax Credit
This non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage can be claimed on your 2009 income tax return. CRA discusses various topics related to the credit here.
Tax-Free Savings Accounts (TFSAs)
On October 16, 2009 amendments to the Income Tax Act were proposed to strengthen the rules applicable to TFSAs.
Harmonized Sales Tax (HST) in Ontario and British Columbia
If legislation passes as proposed, the HST will replace existing provincial sales taxes and the Goods and Services Tax in Ontario and British Columbia beginning July 1, 2010. Get information and updates here.
Major Tax Changes for 2009
Registered Disability Savings Plan (RDSP)
The deadline for opening an RDSP, making contributions, and applying for the matching grant and the income-tested bond for 2008 was extended from December 31, 2008, to March 2, 2009. The 2009 RDSP contribution year began March 3, 2009.
Apprenticeship Completion Grant
Enter on line 130 income received from an apprenticeship completion grant (more information).
Basic Personal Amount
The amount has increased to $10,320 (more information).
Age Amount
The maximum amount has increased to $6,408 (more information).
Spouse or Common-Law Partner Amount
The maximum amount has increased to $10,320 (more information).
Amount for an Eligible Dependant
The maximum amount has increased to $10,320 (more information).
Home Renovation Expenses
For 2009 only, you can claim an amount for eligible expenses incurred for work performed or goods acquired after January 27, 2009, and before February 1, 2010 (more information).
Home Buyers' Amount
You can claim an amount of $5,000 if you purchased a qualifying home after January 27, 2009 (closing after this date) (more information).
Investment Tax Credit
The deadline to claim the mineral exploration tax credit on qualifying expenses renounced under flow-through share agreements has been extended to March 31, 2010 (more information).
Home Buyers' Plan (HBP)
The maximum amount you can withdraw from an RRSP under the HBP has increased to $25,000 (more information).
Final Return of a Deceased Person
If an unmatured RRSP or RRIF of a deceased person decreases in value following death, and the final payment from that RRSP or RRIF is made after 2008, a deduction may be claimed on the final return of the deceased person for that decrease in value. For more information, see Guide T4040, RRSPs and Other Registered Plans for Retirement.
Related Websites
Canada Revenue Agency's What's New page provides links to news releases, updates on programs and services, and upcoming events.