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In this two-part series, we will review the tax measures and developments that will enable you to have more money in your pockets.
By April 30th, make sure you don’t forget any credits that could reduce your tax bill!
Moving
If you moved in 2018 to be at least 40 kilometres closer to your new work location in Canada, you can claim your moving expenses. Note however that these costs can only be deducted from your income from the new job (or new company) for the year. Any non-deducted balance of eligible expenses can be carried forward to future years.
Here are some examples of eligible expenses that are often overlooked:
- Costs relating to the sale of your former residence, including the broker’s commission;
- Legal fees and transfer duties applicable to registering the deed of ownership of your new residence when you sell your old one;
- Maintenance fees of up to $5,000 relating to your former residence while it was up for sale and you and your family were not living there.
Financial expenses
When you make an investment to generate (not tax-exempt) investment or business income, you can claim the expenses incurred during the year for this investment as a tax deduction. In Quebec however, in the case of income from property (and not from a business), the deduction of financial expenses is limited to investment income. As applicable, any non-deducted balance will be carried forward indefinitely and can be deducted when taxable investment income is generated.
Seniors or retirees
The tax systems offer numerous benefits for seniors and retirees. For example, there is the non-refundable tax credit for experienced workers offered in Quebec. Now available as of 61 years of age instead of 63, this credit could entitle you to a maximum credit of $450 if you are 61 years old, $750 if you are 62, $1,050 if you are 63, $1,350 if you are 64 and $1,650 if you are 65 years old. You must be employed and earning more than $5,000 per year.
Since 2016, the Quebec government has also been offering a grant to seniors aged 65 years and older who have owned their residence for at least 15 years and who experience a significant increase in their municipal taxes. If your annual family income does not exceed $51,700, you may qualify.
In Quebec, the independent living tax credit for seniors has been increased. This credit corresponds to 20% of the portion exceeding $250 of the annual expenses incurred to acquire, rent or install equipment to be used by a senior 70 years and older in his/her principal residence. The extended list of eligible equipment now includes walkers, canes, crutches, non-motorized wheel chairs and equipment for the hearing impaired.
Tips
Did you forget a tax deduction in the past? You can ask for an adjustment to your income tax returns for the past 10 years in order to claim the deductions to which you are entitled.
Consult an expert to benefit from the best tax reductions.
This article was published on April 25, 2019 in the Journal de Montréal and Journal de Québec (in French). Christian Menier is the new columnist for the Argent – Dans vos poches column.