What new tax credits can I claim in 2013?
As we make our way through February and a number of clients begin to receive their income slips, I believe it is time to discuss the new tax credits and changes in existing tax credits for 2013. As another tax season quickly approaches, I have breifely summarized some tax credits to look out for and their respective links to the CRA website for further reading:
- First-time donor’s super credit – This new credit effectively adds 25% to the rates used in the calculation of the CDTC for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.
- Family caregiver amount – For 2013 and subsequent years, if you have a dependent with an impairment in physical or mental functions, you may be eligible to claim an additional amount of $2,040
- Pooled registered pension plan – A PRPP is a new kind of deferred income plan designed to provide retirement income for employees and self-employed individuals who do not have access to a workplace pension.
- Adoption expenses – As a parent, you can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $11,669. You can claim these incurred expenses in the tax year including the end of the adoption period for the child.
- Tax-free savings account (TFSA) – As of January 1, 2013, Canadian residents, age 18 and older, can contribute up to $5,500 annually to a TFSA. This is an increase from the annual contribution limit of $5,000 for 2009 through 2012 and reflects indexation to inflation.
For more information on how these tax credits and opportunities may be used to your advantages contact Matthew Gustavson Chartered Accountant Today at 778.484.8155.