Low-income Individuals and Families Tax (LIFT) Credit - NEW up to $ 1,700 Tax Credit

[tjthemanto]

Don't forget to apply for it next year if you are low income person or a low income family.

Sadly you can't apply for it this 2019 year as it came into effect on January 1 st, 2019, so 2018 tax forms won't have this credit on it .

Jan. 1 2019 start date so it won't be on your 2018 tax forms.

Low-income Individuals and Families Tax (LIFT) Credit.

The LIFT Credit will benefit 1.1 million people across the province by providing:

up to $850 in personal income tax relief to low-income and minimum wage workers.

up to $1,700 in personal income tax relief to couples.

This tax credit is effective January 1, 2019, and will apply to your 2019 tax return, available in 2020.

[tjthemanto]

I believe this is for ONTARIO only. Mostly started for minimum wage workers and minimum wage worker's families.

So check if your province has something similar or not.

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The Low-Income Individuals and Families Tax (LIFT) Credit

Starting with the 2019 tax year, the government is proposing to introduce a new non-refundable Low-income Individuals and Families Tax (LIFT) Credit. The LIFT Credit would eliminate or reduce Ontario Personal Income Tax (PIT) for low-income Ontario taxpayers who have employment income.
The proposed tax credit would be calculated as the lesser of:

• $850; and
• 5.05 per cent of employment income.

This amount would then be reduced by 10 per cent of the greater of:

• Adjusted individual net income in excess of $30,000; and
• Adjusted family net income in excess of $60,000.

The resulting amount would then be limited to the taxpayer’s PIT otherwise payable, excluding the Ontario Health Premium.
If the taxpayer has a spouse or common-law partner at the end of the year, the taxpayer’s adjusted family net income would include the income of that spouse or common-law partner.
People who are resident in Canada at the beginning of the year and resident in Ontario at the end of the year would be eligible for this credit.
Taxpayers who would not get this new tax relief would include those who have:

• No Ontario PIT payable;
• No employment income;
• More than $38,500 in adjusted individual net income;
• A higher-income partner such that their adjusted family net income is greater than $68,500; or
• Been in prison for more than six months during the year.

[tjthemanto]

Lot of low income people don't have income tax to pay in the first place. So not sure how this NON REFUNDABLE tax credit is going to help them.

If it was a tax rebate as opposed to a credit, or a REFUNDABLE tax credit then it makes sense to them.

I do the taxes for a low income senior couple. This LIFT credit won't help them at all. With or without it their tax refund or return is going to be pretty much the same .

[Ciel]

Good that you posted about the new credit. Does it replace the other working credit for low-income earners who earn at least $3G per year?

[tjthemanto]

Good that you posted about the new credit. Does it replace the other working credit for low-income earners who earn at least $3G per year?

The working income tax benefit (WITB), I think you are talking about that.

No the WITB will remain in place. I think that comes more from the Federal government.

LIFT will be from the Provincial Ontario government.

So in a way it is good for both your Federal taxes and Provincial taxes ( ON only) , you get help if you are willing to work, even if it is a a minimum wage job.

[tjthemanto]

Threshold seems to be pretty generous to get the FULL amount at
$ 30,000 and $ 60,000 for individual and family respectively.

Very few low income people even make that . So need not worry about a claw back.

Some other low income rebates like public transit rebates, utilities rebate like hydro, heating rebates the income thresholds are pretty low and most people don't qualify.

[Aquaria]

does this apply to a student who is in massage school and works part-time (like 1-2 days only), student is over 18yrs but living with parents but both parents are already retired or not working? thanks.

[tjthemanto]

Low-income Individuals and Families Tax (LIFT) Credit.

Apply for it next year - January 1, 2020 for your 2019 tax year.

[tjthemanto]

does this apply to a student who is in massage school and works part-time (like 1-2 days only), student is over 18yrs but living with parents but both parents are already retired or not working? thanks.

Yes it applies to them also. But don't forget it's just a non refundable tax credit not a tax rebate.

Will help them reduce their ON provincial taxes, so their tax refund will be greater, when they file their taxes.

But yes it will definitely help them by reducing their taxes.

[tjthemanto]

Hopefully it is automatic & calculated by the tax software on its own without having to apply separately for it.

Lot of government credits & rebates are lost due to inaction ( people don't apply ) or simply because people don't know about it.

[tjthemanto]

Should be interesting next year.

[Ciel]

Threshold seems to be pretty generous to get the FULL amount at
$ 30,000 and $ 60,000 for individual and family respectively.

Very few low income people even make that . So need not worry about a claw back.

Some other low income rebates like public transit rebates, utilities rebate like hydro, heating rebates the income thresholds are pretty low and most people don't qualify.

If your senior clients use monthly transit passes, they qualify for transit NRTC at least! As long as passes are registered and account reports can be generated, they qualify. Rest of transit users don't get this credit any more.

[tjthemanto]

Liberals announce FEDERAL tax cuts also. No tax up to $ 15,000.

This will go well with this provincial ON tax cut/credit.

Great for low income or minimum wage earners.

[tjthemanto]

Starts today.

[tjthemanto]

See My Account new feature to claim any Uncashed cheques you might have.

$ 1 Billion pending.

https://edmonton.ctvnews.ca/mobile/1...ques-1.4850839