Important numbers to have at your disposal for planning your 2015 tax filing and 2016 tax year.
- Maximum RRSP contribution: The maximum contribution for 2016 is the lesser of 18% of earned income and $25,370, and for 2015 is $24,930.
Unused previous years allowable contributions may be added. RRSP Loans are available.
- TFSA limit: The annual limit for 2015 is $10,000, for a total of $41,000 in room available for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual TFSA limit for 2016 is $5,500, to be indexed to inflation in future years, bringing total room to $46,500.
- Maximum pensionable earnings: For 2015, the maximum pensionable earnings is $53,600, and the basic exemption amount is $3,500. And, for 2016, maximum pensionable earnings under the Canada Pension Plan will be $54,900, while the basic exemption amount will remain the same.
- Maximum EI insurable earnings: The maximum annual insurance earnings (federal) for 2015 is $49,500, and for 2016 is $50,800.
- Lifetime capital gains exemption: The lifetime capital gains exemption for active Canadian small business is $824,176 in 2016 and $813,600 in 2015.
- Low-interest loans: The current family loan rate is 1%.
- Home buyers’ amount : Did your client buy a home? He or she may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750.
- Medical expenses threshold: For the 2015 tax year, the maximum is 3% of net income or $2,208, whichever is less. For 2016, the threshold is the lesser of 3% or $2,237.
- Donation tax credits: after March 20, 2013, the first-time donor super credit is 25% for up to $1,000 in donations, for one tax year between 2013 and 2017.
- Age amount: Clients can claim this amount if they were 65 years of age or older on December 31 of the taxation year and, for 2015, their income was below $82,353. The maximum amount they can claim is $7,033 in 2015, and $7,125 in 2016.
- Pension income amount: Clients may be able to claim up to $2,000 if they reported eligible pension, superannuation, or annuity payments.
- OAS recovery threshold: If your client’s net world income exceeds $72,809 for income year 2015 (and $73,756 for 2016), he or she may have to repay part of or the entire OAS pension.
Clients with Children
- Children’s fitness tax credit: If your client’s children played baseball, soccer, or participated in some other program of physical activity, clients may be able to claim up to $1,000, per child, of the cost of these programs. Clients can claim an additional $500 for each eligible child who qualifies for the disability amount and for whom they’ve paid at least $100 in registration or membership fees for an eligible program. As of 2015, this is a refundable credit.
- Children’s arts tax credit: If clients’ children participated in a program of artistic, cultural, recreational, or developmental activity such as tutoring, clients may be able to claim up to $500 of the fees paid, per child, on these programs. Clients can claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid at least $100 in registration or membership fees for an eligible program.
- Family caregiver amount : If you have a dependant who’s physically or mentally impaired, you may be able to claim up to an additional $2,058 in calculating certain non-refundable tax credits.
- Working income tax benefit (WITB): in 2014* , the maximum benefit for single individuals without children is $998 (Canada excluding Alberta, Quebec, B.C. and Nunavut). The maximum benefit for families is $1,813 (Canada excluding Alberta, Quebec, B.C. and Nunavut). More detail on 2015 filing at the link.
- Disability amount: The amount for tax year 2015 is $7,899, and 2016 is $8,001. This year, Canadians claiming the Disability Tax Credit (DTC) will be able to file their T1 return online regardless of whether or not their Form T2201, Disability Tax Credit Certificate has been submitted to the CRA for that tax year.
- Child disability benefit: The Child Disability Benefit is a tax-free benefit of up to $2,695 per year ($224.58 per month) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
- Universal child care benefit (UCCB): The UCCB is a monthly payment of $100 per eligible child under the age of 6 years. For 2015, there is a benefit of up to $60 per month for children aged 6 to 17, bringing the amount to $160. For 2016, the UCCB will be in place until July 1, at which point a new, to-be-determined child benefit will replace it.
- Child Care Expense Deduction limits: As of the 2015 tax year, the Child Care Expense Deduction dollar limits have increased by $1,000. The maximum amounts that can be claimed have increased to $8,000 for children under age seven, to $5,000 for children aged seven through 16, and to $11,000 for children who are eligible for the Disability Tax Credit.
*CRA site has yet to update for 2015. Return to the credit.