Tax Changes for 2020 - Mostly CPP, EI, Basic Personal Amount changes

[tjthemanto]

https://business.financialpost.com/p...#comments-area

[Ciel]

Oh, the basic personal amount won't be $15000 for 2020? Thought that was the idea. Good to know about the changes.

1.9% increase is what I saw posted for OMERS pensions based on the CPI too.

[tjthemanto]

Oh, the basic personal amount won't be $15000 for 2020? Thought that was the idea. Good to know about the changes.

1.9% increase is what I saw posted for OMERS pensions based on the CPI too.

Yes it will only be $ 13,229 for 2020.

For 2020, the new BPA will be $13,229.
It will rise to $13,808 in 2021 and
$14,398 in 2022. Then $ 15,000 for 2023.

Description	2020	2019	2018	2017
Indexation increase	1.9%	2.2%	1.5%	1.4%

Description	2020	2019	2018	2017
Taxable income above which the 20.5% bracket begins	$48,535	$47,630	$46,605	$45,916
Taxable income above which the 26% bracket begins	$97,069	$95,259	$93,208	$91,831
Taxable income above which the 29% bracket begins	$150,473	$147,667	$144,489	$142,353
Taxable income above which the 33% bracket begins	$214,368	$210,371	$205,842	$202,800

Description	2020	2019	2018	2017
Basic personal amount	$13,229	$12,069	$11,809	$11,635
Age amount	$7,637	$7,494	$7,333	$7,225
Net income threshold for age amount	$38,508	$37,790	$36,976	$36,430
Spouse or common-law partner amount (maximum)	$12,298	$12,069	$11,809	$11,635
Spouse or common-law partner amount (maximum if eligible for the Canada caregiver amount for a dependent)	$14,571	$14,299	$13,991	$13,785
Amount for an eligible dependant (maximum)	$12,298	$12,069	$11,809	$11,635
Amount for an eligible dependant (maximum if eligible for the Canada caregiver amount for a dependent)	$14,571	$14,299	$13,991	$13,785
Canada caregiver amount for children under age 18	$2,273	$2,230	$2,182	$2,150
Canada employment amount (maximum)	$1,245	$1,222	$1,195	$1,178
Canada caregiver amount for other infirm dependants age 18 or older (maximum amount)	$7,276	$7,140	$6,986	$6,883
Net income threshold for Canada caregiver amount	$17,085	$16,766	$16,405	$16,163
Disability amount	$8,576	$8,416	$8,235	$8,113
Supplement for children with disabilities (maximum)	$5,003	$4,909	$4,804	$4,733
Threshold relating to allowable child care and attendant care expenses	$2,930	$2,875	$2,814	$2,772
Adoption expenses (maximum per adoption)	$16,563	$16,255	$15,905	$15,670
Medical expense tax credit (3% of net income ceiling)	$2,397	$2,352	$2,302	$2,268

Description	2020	2019	2018	2017
Maximum supplement	$1,272	$1,248	$1,222	$1,203
Minimum earnings threshold	$3,714	$3,645	$3,566	$3,514
Family net income threshold	$28,164	$27,639	$27,044	$26,644

Description	2020	2019	2018	2017
Old age security repayment threshold	$79,054	$77,580	$75,910	$74,788

Description	2020	2019	2018	2017
Income exclusion (maximum per month)	$373	$366	$359	$353

Description	2020	2019	2018	2017
Threshold amount relating to cost of eligible tools	$1,245	$1,222	$1,195	$1,178

Description	2020	2019	2018	2017
Minimum working income threshold	$10,000
Maximum net income	$147,667

Description	2020	2019	2018	2017
Adult maximum	$296	$290	$284	$280
Child maximum	$155	$153	$149	$147
Single supplement	$155	$153	$149	$147
Phase-in threshold for the single supplement	$9,590	$9,412	$9,209	$9,073
Family net income at which credit begins to phase out	$38,507	$37,789	$36,976	$36,429

Description	2020	2019	2018	2017
Annual TFSA dollar limit Footnote2	$6,000	$6,000	$5,500	$5,500

Description	2020	2019	2018	2017
Exemption limit	$883,384	$866,912	$848,252	$835,716
Deduction limit (since ½ of the capital gain is taxable)	$441,692	$433,456	$424,126	$417,858
Additional exemption amount for qualified farm or fishing property	$116,616	$133,088	$151,748	$164,284
Additional deduction amount for qualified farm or fishing property (since ½ of the capital gain is taxable)	$58,308	$66,544	$75,874	$82,142

Description	2020	2019	2018	2017
CCB (base benefit, child under age 6)	$6,765	$6,639	$6,496	$6,400
CCB (base benefit, child aged 6 to 17)	$5,708	$5,602	$5,481	$5,400
Adjusted family net income at which phase out begins	$31,711	$31,120	$30,450	$30,000
Second phase out threshold	$68,708	$67,426	$65,975	$65,000
Base phase out amount for one eligible child	$2,590	$2,541	$2,487	$2,450
Base phase out amount for two eligible children	$4,995	$4,901	$4,796	$4,725
Base phase out amount for three eligible children	$7,029	$6,898	$6,750	$6,650
Base phase out amount for four or more eligible children	$8,509	$8,351	$8,171	$8,050

Description	2020	2019	2018	2017
Maximum benefit	$2,886	$2,832	$2771	$2730
Family net income threshold for phase out	$68,708	$67,426	$65,975	$65,000

[tjthemanto]

Higher Carbon Tax Rebates this year as compared to last year.

n Ontario, Manitoba and Saskatchewan, the payments, based on household size, are higher than last year's.
For example, a single person in Ontario received $154 last year, but is eligible for $224 this year. A family of four in Saskatchewan received $609 last year, but is eligible for $809 this year.

[tjthemanto]

TFSA annual dollar limits by year

For 2009, 2010, 2011 and 2012: $5,000
For 2013 and 2014: $5,500
For 2015: $10,000
For 2016, 2017, and 2018: $5,500
For 2019 and 2020: $6,000
Federal tax bracket thresholds for 2020

• The 33.0% tax rate begins at taxable income of over $214,368, up from $210,371 in 2019
• The 29.0% tax rate begins at taxable income of over $150,473, up from $147,667 in 2019
• The 26.0% tax rate begins at taxable income of over $97,069, up from $95,259 in 2019
• The 20.5% tax rate begins at taxable income of over $48,535, up from $47,630 in 2019
• The basic personal amount for 2020 is $12,298, up from $12,069 in 2019

In their election platform, the Liberals said they would raise the basic personal amount to $15,000 by 2023, but claw it back at the bracket that begins at $150,473 in 2020.

[Ciel]

Higher Carbon Tax Rebates this year as compared to last year.

n Ontario, Manitoba and Saskatchewan, the payments, based on household size, are higher than last year's.
For example, a single person in Ontario received $154 last year, but is eligible for $224 this year. A family of four in Saskatchewan received $609 last year, but is eligible for $809 this year.

Thought that Ontario and two other provinces were getting lower credits due to provinces not having carbon tax policies?
Anyway, the credit will go to Mom this year, given the flux in utility rates and the ever-rising fixed charges on the bills.

[Ciel]

TFSA annual dollar limits by year

For 2009, 2010, 2011 and 2012: $5,000
For 2013 and 2014: $5,500
For 2015: $10,000
For 2016, 2017, and 2018: $5,500
For 2019 and 2020: $6,000
Federal tax bracket thresholds for 2020

• The 33.0% tax rate begins at taxable income of over $214,368, up from $210,371 in 2019
• The 29.0% tax rate begins at taxable income of over $150,473, up from $147,667 in 2019
• The 26.0% tax rate begins at taxable income of over $97,069, up from $95,259 in 2019
• The 20.5% tax rate begins at taxable income of over $48,535, up from $47,630 in 2019
• The basic personal amount for 2020 is $12,298, up from $12,069 in 2019

In their election platform, the Liberals said they would raise the basic personal amount to $15,000 by 2023, but claw it back at the bracket that begins at $150,473 in 2020.

A TFSA is a financial goal for 2020.

[Ciel]

Paper income tax package arrived in the mail on January 16, 2020.

The four-page tax return is now 8 pages, due to large font sizes and re arrangement of some sections (p.2 is for Elections Canada opt-in to update your info (but wait, if you say YES, then political parties get the info and you get those robo or campaign calls) for 18+ or youth 14-17 wanting to be listed in Future Electors database, foreign property declaration, exempt income under Indian Act declaration). The line numbers now have 00s added so line 150 (total income) is now 15000 on the return.

There's a white copy of the return (have to open staples to remove it from the package) and a newsprint copy (perforated) of the return plus one mailing envelope (ONT tax package), with guide pages and new changes mentioned and the forms.

Ontario tax package only provides ONE COPY of each schedule or worksheet -even the back inside cover is part of a tax form but you'll have to cut it out as it's the only non-perforated page. You'll need to photocopy these forms to have your own file to keep after mailing the originals along with your income tax return (and expect to pay more postage as some forms are double-sided ie. Climate Change Initative Schedule 14--can imagine the ranting going on for all the downloaded forms some taxpayers might have to print off instead at home, as there are no longer print copies available at post offices across the country).

I'll list my donations for 2019 but carry them forward (have one receipt but other one is due to come this month). Have a medical expense but no nrtc will come out of it as I have no income for 2019. All I can expect is the $224 Climate Change credit and I'll jot a cheque to Mom once my account acquires said amount.

Monday-I expect to be making copies of my forms and mailing my return in. Will I be under $2 in photocopying? Keep checking next week for the update!

BTW, I see a potential error on Schedule 14 for the Climate Change Initiative-in the list of who does not qualify for it, there's anyone with tax-exempt income who cannot apply for the credit. There should have been a wee addition that if a taxpayer opts to pay income taxes on tax-exempt income (there's a form for that!), then that person becomes eligible if also meeting the rest of the credit's criteria. Because in Canada, anyone with residential ties to Canada has to claim worldwide income and if you pay income taxes in Canada and elsewhere, the CRA allows you to claim a foreign income tax credit on your Cdn income tax return.

Ditto the part in the guide about CPP undercontributions-if one has more than one employer, s/he may not have contributed sufficiently to CPP. Missed opportunity to point out the following:
That's why each year for about three years now, I post about everyone to submit a new TD1 form to payroll at the main job in the NEW YEAR or to the one job with most hours for personal exemptions changes (you want to exempt the first $3000 in income from CPP and claim any other personal amounts esp. if you may have a spouse with low income or dependents needing caregiving), but not to claim personal exemptions at second or less hours jobs (on TD1 form for those positions, indicate not claiming those amounts so that indicates to payroll to deduct all source deductions without exempting your first $3000 of income from CPP calculations).

*Since some SCers have posted about family (immediate or extended) that have passed away or required care at home for health reasons that impair physical or mental functions, don't over look line 307 Canada Caregiver amount NRTC (you can split it with other family members who were involved in caregiving for in 2019 (or 2018 T1-Adj form if not claimed on 2018 return) for the family living elsewhere but needing help with basic needs. The only problem is if the family members were claimed on line 303 of immediate family member's return or line 305 of Schedule 1, then a split line 307 amount between two or more kin is not an option. Even the new issue of Caregiver Solution mentions this credit in its tax article.*

[Arjon]

A TFSA is a financial goal for 2020.

YMMV but a fairly simple but effective method that I know has worked to help people start TFSAs involves two steps each week. The first is to put aside a small amount at the start of each week. This doesn't have to be much, but it needs to be an amount you're sure you can commit to setting aside every single week. Even if it's only $1 or $2, that's fine. What's important is that you commit to not missing any weeks, and also to refrain from "borrowing" any of it as it accumulates.

The second step, at the end of each week, is to add more if you can. In any given week, this can vary from $0 to quite a bit. That's fine; as above, the key is that it's not money you need for the week ahead or that you'll be tempted to "borrow".

I suggest physically setting the money aside; use a jar, envelope or whatever, and keep a running tally of the total. If you feel that having the money and/or the total somewhere visible might make it more tempting to "borrow", put them in a drawer, a cupboard or anywhere else that's not out in the open, and make frequent, small deposits so there's never much on-hand.

[tjthemanto]

🙏

[tjthemanto]

Surprised it comes in the mail so early, but Netfile does not open till February 24, 2020!

Paper income tax package arrived in the mail on January 16, 2020.

The four-page tax return is now 8 pages, due to large font sizes and re arrangement of some sections (p.2 is for Elections Canada opt-in to update your info (but wait, if you say YES, then political parties get the info and you get those robo or campaign calls) for 18+ or youth 14-17 wanting to be listed in Future Electors database, foreign property declaration, exempt income under Indian Act declaration). The line numbers now have 00s added so line 150 (total income) is now 15000 on the return.

There's a white copy of the return (have to open staples to remove it from the package) and a newsprint copy (perforated) of the return plus one mailing envelope (ONT tax package), with guide pages and new changes mentioned and the forms.

Ontario tax package only provides ONE COPY of each schedule or worksheet -even the back inside cover is part of a tax form but you'll have to cut it out as it's the only non-perforated page. You'll need to photocopy these forms to have your own file to keep after mailing the originals along with your income tax return (and expect to pay more postage as some forms are double-sided ie. Climate Change Initative Schedule 14--can imagine the ranting going on for all the downloaded forms some taxpayers might have to print off instead at home, as there are no longer print copies available at post offices across the country).

I'll list my donations for 2019 but carry them forward (have one receipt but other one is due to come this month). Have a medical expense but no nrtc will come out of it as I have no income for 2019. All I can expect is the $224 Climate Change credit and I'll jot a cheque to Mom once my account acquires said amount.

Monday-I expect to be making copies of my forms and mailing my return in. Will I be under $2 in photocopying? Keep checking next week for the update!

BTW, I see a potential error on Schedule 14 for the Climate Change Initiative-in the list of who does not qualify for it, there's anyone with tax-exempt income who cannot apply for the credit. There should have been a wee addition that if a taxpayer opts to pay income taxes on tax-exempt income (there's a form for that!), then that person becomes eligible if also meeting the rest of the credit's criteria. Because in Canada, anyone with residential ties to Canada has to claim worldwide income and if you pay income taxes in Canada and elsewhere, the CRA allows you to claim a foreign income tax credit on your Cdn income tax return.

Ditto the part in the guide about CPP undercontributions-if one has more than one employer, s/he may not have contributed sufficiently to CPP. Missed opportunity to point out the following:
That's why each year for about three years now, I post about everyone to submit a new TD1 form to payroll at the main job in the NEW YEAR or to the one job with most hours for personal exemptions changes (you want to exempt the first $3000 in income from CPP and claim any other personal amounts esp. if you may have a spouse with low income or dependents needing caregiving), but not to claim personal exemptions at second or less hours jobs (on TD1 form for those positions, indicate not claiming those amounts so that indicates to payroll to deduct all source deductions without exempting your first $3000 of income from CPP calculations).

*Since some SCers have posted about family (immediate or extended) that have passed away or required care at home for health reasons that impair physical or mental functions, don't over look line 307 Canada Caregiver amount NRTC (you can split it with other family members who were involved in caregiving for in 2019 (or 2018 T1-Adj form if not claimed on 2018 return) for the family living elsewhere but needing help with basic needs. The only problem is if the family members were claimed on line 303 of immediate family member's return or line 305 of Schedule 1, then a split line 307 amount between two or more kin is not an option. Even the new issue of Caregiver Solution mentions this credit in its tax article.*

[Ciel]

I was worried I'd have to wait until mid-February for the package, per the deadline CRA promises to have the paper packages out to taxpayers (as seen on the wall poster at my post office) who filed by that method last year.

*There are two copies of ON428 Ontario Tax form.But all other forms are single copies only.

[Ciel]

Information about the Canada Training Credit, applicable as of 2020!

Who is eligible:
[QUOTE]In 2019 and subsequent tax years, an individual who is at least 25 years old and less than 65 years old at the end of the year can accumulate $250 towards the individual’s Canada training credit limit (for the next year), provided they satisfy all of the following conditions with respect to the year:

• file a tax return for the year;
• be resident in Canada throughout the year;
• have a total of $10,000Footnote* or more of income from:
  
  • maternity and parental benefits, and
  • working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).
  
  
• have individual net income for the year that does not exceed the top of the third tax bracket in that year ($147,667 in 2019)Footnote* .

/QUOTE]

https://www.canada.ca/en/revenue-age...ng-credit.html

[Ciel]

Saw this article in two newspapers about the two million Canadians still using paper tax returns:

https://www.thestar.com/business/202...son-opens.html


Today's mail included my tax receipt from the Ontario government for last year's contribution to the Ontario Opportunity's Fund.

[Ciel]

Saw this article in two newspapers about the two million Canadians still using paper tax returns:

https://www.thestar.com/business/202...son-opens.html


Today's mail included my tax receipt from the Ontario government for last year's contribution to the Ontario Opportunity Fund.