The coronavirus, officially known as COVID-19, continues to disrupt life as we know it. To be prepared for COVID-19 prevention during tax season, we would like to suggest to our valued tax clients that we can prepare and file your income taxes remotely, without physically meeting in our office. To do so, please email us your tax related slips and documentation. Once we complete your income tax, we will get your consent to file your taxes electronically. You will have the choice of receiving a copy of your tax either by mail or a PDF copy.
Coronavirus disease (COVID-19) – Benefits and services
Read more at Service Canada:
https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
Government Economic Response Plan for COVID-19
In regards to Canada’s supports, payments to eligible Canadians affected by COVID-19 are expected to roll out in early April and funds delivered as soon as the week of April 6. The following are the updated news and details are to be announced on early April.
Temporary Business Wage Subsidy
For Businesses, B.C. is extending filing and payment deadlines for the following taxes until September 30, 2020.
https://www2.gov.bc.ca/gov/content/taxes/tax-changes/covid-19-tax-changes
Today, March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These supports, are provided in respect of the Government of Canada’s COVID-19 Economic Response Plan by providing up to $27 billion in direct support to Canadian workers and businesses.
IT includes main topics of the following:
FOR INDIVIDULAS:
Income Support for individuals who need it most through:
- One time pay back of GST of close to $400 for singles and nearly $600 for couples.
- One time average extra $300 Child Tax support for May 20120
- Extending the tax filing due date to for individuals from April 30 to June 1st. For those who receive pension or regular CRA payment like Child tax benefit, consider the filing date to determine their 2020-2021 monthly payments starting July 01 each year.
- Canada’s large banks have confirmed to provide up to a 6-month payment deferral for mortgages.
FOR BUSINESSES:
Business income taxes owing and Instalments due on or after today can be paid until after August 31, 2020.
To prevent businesses to lay off their employees. Government will cover 10% of those employees gross salary for up to 3 months.
For more information, see Canada Revenue Agency plan announcement at:
https://www.canada.ca/en/department-finance/economic-response-plan.html#individual
T1 2019 Income tax electronic filing opens on February 24, 2020
The EFILE program is now closed for the electronic filing of all Canadian’s initial and amended T1 personal income tax and benefit returns.
EFILE and ReFILE services will re-open on Monday, February 24, 2020.
BC Government Home Renovation Tax Credit
The Home Renovation Tax Credit, worth up to $1,000 (10,000 X 10%) per year, is available to seniors, or family members sharing their home, whether they rent or own. Started in the 2012 tax year, the maximum credit is $1,000 annually, calculated as 10% of eligible permanent home renovation expenditures, for costs incurred on or after April 1, 2012.
As per the BC 2016 Budget, the tax credit is expanded to include persons with disabilities who are eligible to claim the federal disability tax credit, and to family members living with those individuals. This applies to expenditures made on or after February 17, 2016.
Information below will be updated re persons with disabilities when further detail is available.
An “eligible individual”, who is able to claim the tax credit, is an individual who
- was resident in BC on the last day of the taxation year, and
- was a senior, or a qualifying relation of a senior, at the end of the taxation year in which a qualifying expenditure was paid in respect of a qualifying renovation to the individual’s qualifying principal residence.
A “senior” is an individual who is 65 years of age or older at the end of the taxation year.
The renovation must be:
Of an enduring nature and integral to the residence or the land on which the residence is situated, or related to the purchase and installation of a modular or removable version of an item of a type that can otherwise be installed as a permanent fixture to the residence or the land, including modular ramps and non-fixed bath lifts.
The following are examples of eligible expenditures:
-Upgrades to improve accessibility, including handrails, grab bars, walk-in bathtubs, wheel-in showers, and raised toilets
-Wheelchair ramps, lifts and elevators
-Motion-activated lighting
-Certain renovations to allow a first-floor occupancy or secondary suite for a senior relative
-Widening passage doors
-Lowering existing counters/cupboards
-Installing adjustable counters/cupboards
-Light switches and electrical outlets placed in accessible locations
-Door locks that are easy to operate
-Lever handles on doors and taps, instead of knobs
-Pull-out shelves under counter to enable work from a seated position
-Non-slip flooring in the bathroom
-A hand-held shower on an adjustable rod or high-low mounting brackets
-Additional light fixtures throughout the home and exterior entrances
-Swing clear hinges on doors to widen doorways
-Creation of knee space under the basin to enable use from a seated position (and insulation of any hot-water pipes)
-The location of tap to front or side for easier access
-Hands-free taps
-Touch-and-release drawers and cupboards
Some expenditures that are not eligible for the tax credit:
-General maintenance, including roof repairs, windows, flooring, insulation and painting,
-Standard appliances, including side swing ovens and appliances with front located controls
-Services, including home care, housekeeping and gardening
-Landscaping or redecorating
-Installing new windows or regular flooring
-Installing heating or air conditioning systems
-Replacing insulation equipment for medical monitoring and home security
-Wheelchairs and walkers
-Vehicles adapted for people with mobility
-Limitations fire extinguishers, smoke alarms, carbon monoxide detectors
The refundable tax credit will be claimed when the personal tax return is filed. If all or part of the expenses are also eligible for the medical expense tax credit, they can be claimed for both the seniors’ renovation tax credit and the medical expense tax credit.
Please contact us or refer to Canada Revenue Agency web site for more details.https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/credits/seniors-renovation/faqs
Property Transfer Tax
Effective February 17, 2016, newly constructed homes valued up to $750,000 and used as a principal residence will be exempt from property transfer tax. There will be a partial exemption for homes up to $800,000. The buyer does not have to be a first-time owner of residential property.
Effective February 17, 2016, the rate of property transfer tax increases to 3% from 2% on the portion of a property’s fair market value (FMV) above $2 million. The rates of 1% on the first $200,000 of FMV and 2% on the FMV between $200,000 and $2 million remain unchanged.
Effective in spring 2016, disclosure will be required of citizenship, on registration of a taxable transaction, for individuals who are not Canadian citizens or permanent residents of Canada. Corporations will be required to discloe the citizenship of any director who is not a Canadian citizen or permanent resident of Canada. Disclosure of citizenship information will also be required for settlors and beneficiaries of bare trusts.
Home Owner Grant
As previously announced on January 5, 2016, the home owner grant threshold is increased from $1.1 million to $1.2 million for the 2016 tax year. The grant is reduced by $5 for every $1,000 of assessed value in excess of the threshold.
All of the tax changes in the 2016 Budget are subject to legislative approval.
The above does not include all provisions of the 2016 Budget. For further information see the following on the BC Government website:
https://bcbudget.gov.bc.ca/2016/default.htm
https://www.bcbudget.gov.bc.ca/2016/bfp/2016_Budget_and_Fiscal_Plan.pdf
How to claim Tuition, Education and Textbook tax credit:
Students studying in Canada:
If you are a resident of Canada and studying in a T2202 is issued to you for tuition and fees for qualifying courses that are eligible for claim on the income tax return. It includes the maximum student tax deductions for tuition, education, and textbook amounts.
Tax receipts are issued for the calendar year that courses were taken, between January and December. You can claim tuition fees paid to an educational institution once the institution has provided you with an official tax receipt or a completed T2202 tax form to you.
There are qualification criteria around the courses taken. Full time programs must last at least three consecutive weeks with a minimum of 10 hours of instruction, while part-time programs must last at least three consecutive weeks with a minimum of 12 hours of instruction each month.
Students studying outside of Canada:
If you are a deemed resident of Canada and studying in an international university, your university outside of Canada certifies your eligibility for the tuition, education, and textbook amounts on form TL11a. https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/tl11a/tl11a-19e.pdf
Flying students:
Form TL11B will be eliminated and flying schools or clubs will now report students tuition and enrollment summary on Form T2202 the information currently reported on Form TL11B.