The 2015 Personal Income Tax Organizer is designed to assist you in gathering the reporting information and documents necessary for the preparation of your 2015 tax return.
Please complete the attached checklist and send all the necessary information and documentation to us AS SOON AS POSSIBLE as we need time to prepare, process, check and deliver your tax return by the filing deadline of May 2, 2016. Please ensure that all documentation provided is complete. This will allow for quicker processing and efficiency.
Note that if you or your spouse carried on a business in the year, you have until June 15, 2016 to file your personal income tax return. However, you and your spouse's tax liabilities are due on May 2, 2016.
New personal tax measures for 2015 that can affect your tax return:
The maximum RRSP contribution for 2015 has increased to $24,930. Your RRSP deduction for 2015 is generally calculated as 18 per cent of your 2014 earned income, less 2014 pension adjustments to a maximum of $24,930 plus unused RRSP deduction room carried forward from prior years.
The TFSA annual contribution limit for the 2015 tax year has increased to $10,000.
Withdrawals from RRIF, RPP and PRPP
The minimum amount that must be withdrawn each year from a RRIF, RPP or PRPP has been reduced for 2015 and later tax years. All or part of the amounts withdrawn in excess of the reduced 2015 minimum may be eligible to be re-contributed to a RRIF, RPP, RPP, or to buy a qualifying annuity and deducted.
Interest Paid on Student Loans
Interest paid in 2015 or the preceding five years on qualifying student loans can normally be claimed as a non-refundable tax credit. Interest paid on a Canada Apprentice Loan amount for registered Red Seal apprentices can also be claimed.
Family Tax Cut
For 2014 and later tax years, the calculation of the Family Tax Cut has been revised to take into consideration the unused tuition, education, and textbook amounts transferred from a spouse or common-law partner.
Children's Fitness Tax Credit
For the 2015 and subsequent tax years, the Children's Fitness Tax Credit has been made refundable. The maximum amount of fees eligible for the Children's Fitness Tax Credit for each child continues to be $1,000. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which an eligible fitness expense was paid. You can claim this amount if another person has not already claimed the same fees and the total amount claimed is not more than the maximum allowable if only one parent was making the claim.
Child Tax Credit
For 2015 and subsequent tax years, the Child Tax Credit has been replaced by the enhanced Universal Child Care Benefit. The Child Tax Credit was a federal, non-refundable tax credit for dependent children under 18 who ordinarily resided with the parent(s) throughout the taxation year.
Universal Child Care Benefit (UCCB)
For the 2015 tax year, the UCCB has increased to $160 per month for each child under the age of six, and there is a new benefit of $60 per month for each child aged six through 17.
Child Care Expense Deduction Limits
The child care expense deduction dollar limits have increased by $1,000 for the 2015 tax year. The maximum amounts that can be claimed have increased to $8,000 for each child under seven at the end of the year; $5,000 for each child aged seven through 16 at the end of the year; and $11,000 for each child eligible for the Disability Tax Credit.
You can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. For the 2015 taxation year, the maximum amount of eligible expenses for each child increased to $15,255. For subsequent taxation years, the maximum amount will be indexed for inflation.
Parents can claim these adoption expenses in the tax year that includes the end of the adoption period for the child. The adoption period:
- begins when an application is made for registration with a provincial or territorial ministry responsible for adoption (or with an adoption agency licensed by a provincial or territorial government) or when an application related to the adoption is made to a Canadian Court, whichever is earlier; and
- ends when an adoption order is issued by, or recognized by, a government in Canada for that child or when the child first begins to live permanently with you, whichever is later.
Lifetime Capital Gains Exemption
For dispositions of qualified small business corporation shares in 2015, the lifetime capital gains exemption has increased to $813,600.
For dispositions of qualified farm or fishing property, the lifetime capital gains exemption has increased to $813,600 for dispositions before April 21, 2015 and to $1,000,000 for dispositions after April 20, 2015.
Mineral Exploration Tax Credit
Eligibility for the Mineral Exploration Tax Credit has been extended to flow-through share agreements entered into on or before March 31, 2016.
Form T1135: Foreign Income Verification Statement
The Form T1135 has been revised to introduce a simplified reporting method for individuals who own specified foreign property with a total cost of more than $100,000 but less than $250,000 throughout the year. The current detailed reporting method will continue to apply to taxpayers who, at any time during a year, held specified foreign property with a total cost of $250,000 or more.
CRA has updated their mobile app for individual taxpayers. www.cra.gc.ca/mobileapps to download.
Important for EFile
It is now mandatory for all tax returns prepared by Crowe Soberman to be e-filed (certain exceptions are provided by CRA).
Filing your tax return electronically is fast, safe, easy and environmentally friendly.
The benefits of using EFile Online are:
- Individuals who have their returns e-filed can generally expect to have their returns and refunds processed within two weeks. You can get your refund even faster if you use direct deposit.
- Crowe Soberman receives an electronic acknowledgement that the return has been received.
- If you have to pay, you can e-file your return early and not pay the amount owing until May 2nd. Your payment can be made by telephone, Internet banking, ATM or by using the remittance form. In many cases, taxpayers receive their notice of assessment before the payment is due.
Many of our clients feel they do not need a complete copy of their tax return, which often consists of 20 to 30 pages. Most are satisfied with a Jacket Outline, which is a two-page summary of the tax return showing all line items. If you require more information after receiving the Jacket Outline, simply give us the line number, and we can provide the relevant schedules or the complete return by mail or email.
Clients will be provided with a Jacket Outline unless otherwise specified in this 2015 Personal Income Tax Organizer.
Crowe Soberman will store your returns electronically in a secure environment that can be easily accessed when, or if, required.
If you have any questions regarding the organizer, or wish to discuss any aspect of your personal tax situation, please contact us at your earliest convenience.
CROWE SOBERMAN LLP
Chartered Professional Accountants
February 9, 2016
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.