What’s New for the 2016 Tax-Filing Season?

As we come into full swing of tax-filing season, here are a few things to keep in mind.

Child Care Deduction:
The child care deduction is increased by $1,000

  • Children under age 7 from $7,000 to $8,000
  • Children 7 to 16 (or over) to $5,000 from $4,000
  • Children with a disability tax certificate to $11,000

Universal Child Care Benefit – effective January 2015 for payments starting July 2015:

  • Payments for children under age 6 increased from $100 to $160 per month
  • For the children under age 18, a new amount of $60 per month

Registered Retirement Income Fund withdraw amount:

  • The percentage required to be withdrawn declined from 7.38% to 5.28% for 2015 for individuals over the age of 70 at the start of the year.

Capital gains exemption for 2015 is $813,600

Foreign Reporting – T1135

  • Canada Revenue Agency has simplified the foreign asset reporting system for persons whose foreign property for investment is less than $250,000
  • There is no change to the $100,000 threshold for reporting

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