Misfeldt Accounting

What’s New for Personal Income Tax

Child fitness and arts tax credits:

Starting in 2017 tax year:

The federal government is ending these tax credits for the 2017 tax year. However, you can pre-pay 2017 fitness and arts programs in order to deduct for 2016 (as long as the total cost does not exceed the $500 limit or $250 limit respectively).

 

Personal tax rates:

Starting in 2016 tax year:

New federal government is planning on cancelling the former Family Tax Cut (income splitting for couples with children) with a potential $2,000 in tax savings and replacing it with a new personal income tax cut.

Federal personal income tax rate for the second lowest tax bracket ($44,700 to $89,401 of taxable income) will be reduced from 22% to 20.5%. This is a potential income tax reduction of $670 per person depending on income level.
However, there is an increase in the federal income tax rate from 29% to 33% for taxable income above $200,000.

 

Home accessibility tax credit:

Starting in 2016 tax year:

There is a new federal tax credit for seniors (age 65 and older) and individuals who qualify for the disability tax credit. Taxpayers can claim tax credit on up to $10,000 of expenses related to a qualifying renovation to their home.

The renovation must enable the individual to gain access to, or to be mobile or functional within, the eligible dwelling; or reduce the risk of harm to the qualifying individual within the eligible dwelling or in gaining access to the dwelling.

 

This is for information purposes only and subject to change. Misfeldt Accounting is not liable for any misinterpretation of information.


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Accountants Kelowna

Misfeldt Accounting

104 - 1626 Richter Street · Kelowna · BC · V1Y 2M3 · 250-860-5882

Fax : (250) 860-5894 Email : info@misfeldtaccounting.com

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