"I've seen more changes this year than in the past three years," says Lisa Gittens, a tax expert at H&R Block.
Here are eight things families will want to be aware of when filling out their 2016 return.
1. Last chance on certain tax credits
The government is phasing out a handful of tax credits and focusing on larger benefits. The children's arts and fitness tax credits will be halved for the 2016 tax year, and cut completely next year, meaning families will no longer be able to defray costs for things like swimming lessons, ballet and tutoring. For post-secondary students, the education and textbook credits are being eliminated in 2017, although education amounts carried forward from previous years will still be claimable.
2. No more income splitting
Also gone is the Family Tax Cut, which lets the higher-earning spouse transfer up to $50,000 of income to the lower-earner. During the 2015 election, the Liberals promised to cut it, calling it a "tax break for the wealthy."
With the benefit gone, Gittens recommends a spousal RRSP, which allows the higher-earner to contribute to the lower-earning spouse's RRSP and claim the tax benefit. "You may have an RRSP set up, but you haven't thought about setting it up for your spouse. This is an ideal time to use that strategy," she says.
3. Changes to child benefits
The Canada Child Benefit was a signature feature of the 2016 budget, replacing the old Universal Child Care Benefit and the Canada Child Tax Benefit. It's non-taxable, so you don't have to claim it. However, in order to continue to receive the benefit, both parents must file a return, even if one doesn't generate any income, says Gittens.
Also keep in mind that the benefit started in July, so you still have to claim the taxable UCC for the first six months of the year.
4. New tax rates
New tax rates mean you may or may not be pleasantly surprised by the size of your tax bill this year. If you're in the meaty middle that earns between $45,000 and $90,000, your rate will come down to 20.5 percent from 22 percent.
"Most Canadians will be receiving more money at the end of the day than they were under the old system," says Jamie Golombek, managing director of tax and estate planning at CIBC Wealth Strategies Group.
However, high-income earners will be paying more due to a new 33 percent bracket for people earnings more than $200,000.
5. Child care expenses
Childcare costs are usually the biggest deduction available for families, says Golombek. But what many people don't realize is that it goes beyond simply daycare. If you have a nanny, you can claim that expense, but also babysitting, if it's during the day, and summer or day camp.
6. Disability tax credit and family caregiver amount
If you have family members with a disability there are certain credits that may be available to you. The Disability Tax Credit is available to people with disabilities to reduce their taxes. For children under age 18, a parent or caregiver may be able to claim the unused amount.
If you're a caregiver to a family member with physical or mental impairments, you may also be able to claim an additional $2,121, according to the Canada Revenue Agency.
7. Selling your principal residence
Selling your home has typically not been something you've had to report on your taxes, because usually Canadians don't get taxed for capital gains on their principle residence. But starting with the 2016 tax year, individuals who sold their principal residence during the year must report the sale. The government is ostensibly doing this to crack down on people who try to pass off income-generating homes as their principal residence.
8. eFile early, get your refund early
Tax deadline is April 30, but if you want to get ahead of the game, file early, before the government is inundated with last-minute returns. You can still file the old paper return, but Gittens says you'll be looking at a turnaround time of anywhere up to eight weeks, versus 10-14 days for a return filed early and electronically.
So you’re newly married or preparing to say “I do.” Despite modern conventions, there’s still
good reason to assume your husband’s (or wife's) last name. Just be sure you don’t fall into one of these name-change traps.
1. Waiting too long In Ontario, a name change is free if you apply within 90 days of your wedding date. If you apply after this date, the province will charge you. Similar guidelines will apply elsewhere as well. Keep in mind that it also takes four to six weeks for your new driver’s licence and health card to arrive in the mail.
2. Starting the process too soon If you leave for your
honeymoon a month after your wedding, your itinerary will need to match personal identification. Either start the process after you return to Canada, or remember to use your husband’s name when booking your vacation.
3. Forgetting the parental implications If you have children from a previous relationship, the decision to assume your new husband’s name becomes more complex. Unless your children share your last name (or they have a hyphenated surname that includes both mom and dad’s last names), chances are you’ll encounter hiccups when
travelling internationally. Never cross the border or head to the airport without appropriate
documents proving your relationship and the co-parent’s consent, otherwise abduction flags will be raised.
4. Hyphenating without going through the right channels Hyphenating your last name to include your husband’s is equivalent to dropping your maiden name. You still have to go through all the same channels.
5. Thinking changing and assuming your name are the same To formally change your last name, you’ll need to go through a lawyer, whether you’re changing it to your husband’s surname or both of you are taking on a trailblazing new name together. This means even your birth certificate will reflect the change. Assuming your spouse’s name is less involved.
6. Expecting a service to do it all for you While name-change services will help you complete the necessary paperwork in an organized and timely fashion, they can only update the documents that they know of. If you forget to notify them about a car title, alumni association or magazine subscription, you’ll have to deal with that on your own at a later date.
Photo courtesy FlickrCC/Search Influence
Dainty and flavourful, everyone loves to indulge in tiny bites of traditional tea sandwiches. Though they appear finicky to make, these tea sandwiches are easy to assemble and entirely make-ahead.
Pinwheel Sandwiches Trim crusts from 5 slices white or whole wheat sandwich loaf, cut Pullman-style. (Ask bakery to cut sandwich loaf horizontally, or Pullman style.) Using rolling pin, flatten slices slightly. Spread with 1/3 cup (75 mL) butter, softened; spread with filling.
Place 1 asparagus spear (or 2 baby gherkins) along 1 short end of each. Starting at asparagus, roll up tightly without squeezing. Wrap each roll tightly in plastic wrap. Refrigerate for 1 hour. With serrated knife, trim ends; cut each roll into 6 slices.
Makes 30 pieces. Pinwheel Sandwich recipe: Curried Egg Salad Triangle Sandwiches Spread 16 thin slices whole wheat or white sandwich bread with 1/3 cup (75 mL) butter, softened; spread filling evenly over 8 of the slices. Top with remaining slices, pressing lightly. Place on rimmed baking sheet and cover with damp tea towel; cover tightly with plastic wrap and refrigerate until firm, about 1 hour. Trim off crusts. Cut each sandwich into 4 pieces.
Makes 32 pieces. Triangle Sandwich recipe: Ham Pickle Spread Square Sandwiches Make sandwiches as in Triangle Sandwiches above except use 8 thin slices white and 8 thin slices whole wheat sandwich bread. Cut each sandwich into quarters.
Makes 32 pieces.Square Sandwich recipe: Pimiento Cheese Spread Finger Sandwiches Make sandwiches as in Triangle Sandwiches above. Cut each sandwich lengthwise into 4 fingers.
Makes 32 pieces. Finger Sandwich recipe: Tuna Olive Salad
Choose the best-quality bread. Never serve end slices. Freezing bread before cutting and then spreading makes for easier handling.
Bread should be lightly buttered no matter what the filling. Butter should be at room temperature before spreading. Sandwiches will not become limp and soggy as readily if you spread butter right to edge of bread.
Cut crusts off bread with long, sharp knife after (not before) assembling sandwiches. This keeps everything neater.
Since tea sandwiches should be delicate, cut each sandwich into thirds or quarters or in half diagonally. Or use cookie cutters to cut into decorative shapes.