halifax income tax preparation

Tax Tips & Changes For The 2017 Tax Year


child tax benefitsThe Children’s Arts Amount: has been eliminated for 2017.

The Children’s Fitness Credit: has been eliminated for 2017.

public transit bus creditPublic Transit Credit Amount: : Taxpayers can claim this amount for ½ of 2017 as of July 1, 2017 this credit has been eliminated. Taxpayers including their children who use Public Transit can claim the monthly cost of the passes. This is a 15% non-refundable tax credit.

student education creditsTuition, Education and Textbook Amounts For 2017 students can only claim their tuition federally as the claim for education and textbooks has been eliminated federally. However, provincially in NS students can still claim both the tuition and education amounts.

Students should always report their tuition on a S11 and NS(S11) and can still transfer up to $5,000 to a spouse, parent or grandparent. Even if a parent is claiming all of the tuition for themselves it should still be reported on these forms. Students should also be sure to claim any interest paid on student loans.

home tax creditsSale of Principle Residence Beginning in 2016 taxpayers must report the sale of their personal residence on a Schedule 3 (S3). Failure to do so could result in taxpayers losing their personal residence designation and the resulting tax free exemption of the capital gain.

Home Accessibility Expense Starting in 2016 taxpayers may be able to claim up to a 10,000 federal tax credit for expenses incurred in order to make their home more accessible. These expenses are reported on Schedule 12 (S12) and are available to taxpayers who are eligible for the disability tax credit and/or are at least 65 years of age.

teacher tax creditsEligible Educator School Supply Tax Credit Commencing in 2016 if you are a teacher or hold a diploma or certificate in early childhood education you may be eligible for up to a 1,000 federal tax refundable tax credit for money spent on supplies. A qualifying 1,000 tax credit would equal a 150 tax saving.

Amount For Young Children: Taxpayers with children under the age of 6 can claim a NS non-refundable provincial tax credit of $100 per month for each child. This must be claimed on the lower income spouse.

Child Care Expenses: Maximum Child Care Expenses are $8,000 for children under 7 years of age and $5,000 for children aged 7 to 16.

savingsFirst-Time Home Buyers should be sure to claim the $5,000 non-refundable tax credit and save $750 on their taxes. This applies to houses, mobile homes and condos.

Pensioners should be sure to look at splitting their pension income with their spouse by completing a T1032. This has been one of the biggest tax savings changes made in decades! For Nova Scotians aged 65 and over be sure to be aware of the up to a $1,000 reduction in provincial tax if they can get their income to $23,999.99 or less.

Donations can be carried forward for up to 5 years and would normally be combined for spouses in order to maximise total returns.

money bags taxmanOther Changes:
- The Basic Personal Amount has been increased to $11,635
- The Age Amount for taxpayers 65 years of age and older has been increased to $7,225 with the income threshold above which the amount is reduced increasing to $36,430 at a rate of 15%.
- The Disability amount has been increased to $8,113 and now can be filled out by a nurse practitioner in addition to doctors.
- The EI claw-back threshold has been increased to apply to income over $64,125
- The OAS claw-back threshold has been increased to apply to income over $74,788
- The maximum Refundable Medical Expense Supplement has been increased to $1,203 and may be triggered by taxpayers who have relatively high medical expenses in relation to their income. Please note that medical expenses for both spouses would normally be claimed by the lower income spouse in order to maximize total returns.
- The Working Income Tax Benefit (WITB) has been increased to up to $1,043 for single taxpayers and $1,894 for couples. This is a refundable benefit aimed at lower income individuals and families.

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