AccXpert TaxServices Newsletter for 2014 Personal Tax Return

Dear AccXpert TaxServices Clients:

Please find enclosed a copy of our 2014 Individual Income Tax Return Checklist. Your review and completion of the checklist should assist you with the assembly of your 2013 personal income tax information and will assist us with the completion of your 2014 individual income tax return. We request that you return the checklist with your 2014 personal tax information as soon as possible. We remind you that our receipt of your information prior to April 15, 2014 will ensure that we are able to complete your return on a timely basis.

What’s New for 2014 Personal Income Tax Return

Manage Online E-mail – When you register for online mail, the CRA will no longer mail your notices to you. Instead, you will receive an email notification that there is mail for you to view on the My Account secure online service at My Account. For more information, see Email address and Manage online mail.

Family Tax Cut (FTC) or Income Splitting for Couples with Children – Eligible couples with children under age 18 can “notionally” split income, resulting in a tax reduction of up to $2,000.

Note: The federal government announced a new Family Tax Cut for 2014, for couples with children under 18. This will be a non-refundable tax credit to a maximum of $2,000. The UCCB will be increased for 2015 and will also be provided, in a lower amount, for children ages 6 to 17. The Child Tax Credit will be eliminated for 2015, and the Child Care Expense Deduction limit will be increased.

Lifetime Capital Gains Exemption – For dispositions of qualified small business corporation shares and qualified farm and fishing property made after 2013, the lifetime capital gains exemption limit has increased to $800,000.

Children’s Fitness Amount – The Children’s Fitness Tax Credit is being increased from $500 to $1,000 for the 2014 and subsequent taxation years, and will be made refundable for the 2015 and subsequent taxation years.

GST/HST Credit – You no longer have to apply for the GST/HST credit. When you file your return, the CRA will determine your eligibility and tell you if you are entitled to receive the credit.

Caregiver Amount – If you have a parent or grandparent over the age of 65 living with you, even if they are not your dependent you could be eligible for the caregiver amount, depending on their net income. This can also be claimed for dependent relatives over the age of 17 who are living with you, if they are dependent on you due to mental or physical impairment.

RRSP Contribution Deadline for 2014 – March 2, 2015 is the deadline for RRSP contributions for the 2014 tax year, because March 1st falls on a Sunday.

The RRSP contribution limit for 2016 will be $25,370, up from $24,930 in 2015, an increase of 1.76%.

T1135 Foreign Asset Reporting Form Revised Again

The CRA has implemented changes to Form T1135 for the 2014 and later tax years. The changes will allow taxpayers to report aggregate amounts for specified foreign property held in accounts with registered securities dealers and Canadian trust companies rather than providing the detail of each such property. This reporting method requires taxpayers to provide the aggregate fair market value of the property in these accounts by country. In addition the T3/T5 reporting exception has been eliminated. For more information, go to: Reporting for the 2014 and later tax years.

Note: In an attempt to target international tax evasion and aggressive tax avoidance, CRA created form T1135 as an informational reporting requirement. The criteria for those who must file the form has not changed. Any Canadian taxpayer who holds foreign property with a cost amount of over $100,000 CDN in total, at any time in the taxation year, is required to file this form. The form has been revised to include more detailed information regarding the foreign property. The new form must be used for taxation years ending after June 30, 2013. Therefore, the new requirements apply to the 2014 taxation year for individuals. More information concerning the revised form T1135 can be found on the CRA website at http://www.craarc.gc.ca/E/pbg/tf/t1135/.

Internet Business Activities

If you are self-employed and you have a business webpage or website from which income is earned or otherwise conducting business over the internet, information about your website/internet presence must now be reported to CRA as part of your tax return. The following information must be provided: the URL addresses for all webpages or websites that earn business income and the percentage of gross income that is generated from the webpages or websites. More information is provided at page 13 of the CRA T4002 Business and Professional Income Guide which can be found on the CRA website at

http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-14e.pdf.

Making Payments Online

We encourage our clients to pay any taxes owing online because this will ensure the payments are made on time and the date of payment is confirmed.

There are two ways you are able to make a payment online. The first option is to use the “My Payment” service offered by CRA on their website. This is an electronic payment service that uses Interac® Online to allow individuals and businesses to make payments directly to CRA from their online banking account. The other option is to make the payment online as a bill payment on your financial institution’s website.