There are a few things to keep up to date that have changed recently that may impact your 2019 income tax filings.
Basic Personal Amount has increased for 2019 tax year and will continue to increase in the near future. This means that the amount of income you can earn before having to pay income tax has increased. This is also true for income earned tax brackets for 2019.
Home Buyers Plan
The amount that a new home buyer can borrow from their RRSP to purchase a home has increased from $25,000 to $35,000 for 2019. You can borrow it over a max period of 15 years. Remember though that you have to pay the amount back to your RRSP’s. That means when you purchase RRSP’s in the future you have to designate an amount to the Home Buyer’s Plan. If you don’t, the unpaid amount for the year will be considered income and will be added to your net income for the year.
Canada Training Credit
Starting in 2019 you may be eligible for $250 per year, max $5,000 for a lifetime on training amounts such as examination fees and post secondary training. You must be 25 or older, up to age 65. The purpose of this refundable tax credit is to help with costs associated with training.
New Allowable Medical Expenses
Medically prescribed cannabis can now be claimed as a medical expense in Ontario.
Specially trained service dogs for providing support to those with serious mental health conditions are also considered allowed medical expenses.
If you are not sure if you have allowable medical expenses, visit Canada Revenue website to learn more.