DT MAX T1 DT MAX UPDATE

Transcription

1 DT MAX T1 DT MAX UPDATE

2 CONTENTS About this document 3 DT Max Improvements 4 RL-10 Tax credit for a labour-sponsored fund - New Diagnostic and change in Home Buyer s Plan entry 4 Federal/Provincial Equivalent forms tool 4 Federal Tax Data Download 5 Tax changes 6 Federal 6 Family Tax Cut Schedule 1 line 423 (Schedule 1-A) 6 Search and rescue volunteers amount Schedule 1 line GST/HST credit application 7 Donations - Ecological gifts Schedule 1 line CPT20 Election to pay the Canada Pension Plan (CPP) 7 Online Mail 9 Quebec 9 Refundable tax credit for seniors activities TP1 line 462, code 28 9 LogiRénov home renovation tax credit TP-1 line 462, code Retirement Income transfer between spouse TP-1, line Bankruptcy Calculation of certain contributions 13 Voluntary retirement savings plans (VRSPs) 14 Newfoundland and Labrador 14 Venture capital tax credit NL428, Line Nova Scotia 14 Age Tax Credit NS428, Line Ontario 15 Community food program donation tax credit for farmers ON428 line Manitoba 16 Manitoba employee share purchase tax credit MB428, line APPENDIX 1: Tax Rates and Credits 17 2

3 About this document ABOUT THIS DOCUMENT Intended readership This document is intended for any user of DT Max, be it a beginner or advanced user. In this guide In this guide, we will visit the new improvements in DT Max as well as the new keywords and sections in respect to governmental tax changes made in this tax year. 3

4 DT Max Improvements DT MAX IMPROVEMENTS RL-10 Tax credit for a labour-sponsored fund - New Diagnostic and change in Home Buyer s Plan entry As of the 2014 tax year, when accidentally entering both boxes A and G of the RL-10, DT Max will produce a diagnostic in the error prevention report indicating the duplicate entry. Moreover, the keyword HBP-LLP-REPAY has been removed to simplify the entry of the Home Buyer s Plan (HBP) entry. From now on, the repayment for the RL-10 slip will be indicated using the keyword RRSP-HOME. Federal/Provincial Equivalent forms tool As of the 2014 tax year, DT Max will include a new tool in the Tax Return screen that will allow you to toggle between the Federal forms, and their direct equivalents on the provincial side. This new tool is represented by a new icon that has been added to the task bar of the tax return screen. When you are on a Federal form, simply click on the icon above, and DT Max will take you directly to the equivalent form on the provincial side. This includes all provinces, including Quebec. You can also right-click on the Federal form, and DT Max provides the same option to switch to the provicial equivalent form 4

5 DT Max Improvements Federal Tax Data Download As of the 2014 tax year, DT Max will include a tax data download feature, similar to the Quebec feature currently in DT Max. A new option will be added on the right-hand side display which will allow you to display the slips that are currently in the CRA database as a comparative in the Data Entry. You will then be able to copy the slips from the right-hand side to the left-hand side. For more details on the copying from right to left, please consult the T1 User Guide. More details on this feature will be shown in the Workshops. 5

6 Tax changes TAX CHANGES FEDERAL Family Tax Cut Schedule 1 line 423 (Schedule 1-A) The credit is calculated based on the net reduction to your and your spouse or common-law partner s combined federal taxes if up to $50,000 in taxable income were transferred from the individual with the higher taxable income to his or her spouse or common-law partner. You can claim this credit if you were married or living in a common-law partnership, and you and your spouse or common-law partner: were not living separate or apart because of a breakdown in your relationship for a period of 90 days or more including December 31, 2014; were both residents of Canada on December 31, 2014 (or if either person died in the year, at the date of death); and you both file a return for the year this credit is claimed. You or your spouse or common-law partner must also ordinarily live throughout the year with your child who is under 18 years of age at the end of the year. Because of a joint custody arrangement, your child may have ordinarily lived with both you and your former spouse or common-law partner throughout the year. You cannot claim this credit if: you are confined to a prison or similar institution for a period of 90 days or more during the year; your spouse or common-law partner is claiming the credit for the year; either you or your spouse or common-law partner became bankrupt in the year; or either you or your spouse or common-law partner have elected to split eligible pension income. A new schedule has been created to calculate the Family Tax Cut, Schedule 1-A. DT Max Data Entry DT Max will optimize this claim automatically. In order to cancel the claim or transfer the credit, an option has been added to the keyword OPTIMIZE. Source: Schedule 1-A and 5000-G General Guide Search and rescue volunteers amount Schedule 1 line 395 As a search and rescue volunteer, you may be able to claim an amount of $3,000. Eligible search and rescue volunteer services with an eligible search and rescue organization include: responding to and being on call for search and rescue and related emergency calls as a search and rescue volunteer; attending meetings held by the organization; and participating in required training related to search and rescue services. An eligible organization is a search and rescue organization that is a member of the Search and Rescue Volunteer Association of Canada, the Civil Air Search and Rescue Association, or the Canadian Coast Guard Auxiliary, or whose status as a search and rescue organization is recognized by a provincial, municipal or public authority. Your search and rescue organization can tell you if it is eligible. NB: You can claim either the Search and rescue volunteer amount or the Volunteer firefighters amount, but not both. 6

7 Tax changes DT Max Data Entry DT Max will optimize between the deduction already taken for search and rescue volunteers on the T4 and the tax credit. You can use the keyword VOLUNTEER to force the claim of the credit. Source: 5000-G General Guide GST/HST credit application As of the 2014 tax year, 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. Source: 5000-G General Guide Contributions to an amateur athlete trust (AAT) T1 line 207 Under proposed changes, income contributed in 2014 to an AAT now qualifies as earned income in calculating the RRSP contribution limit of the trust s beneficiary. You can make an election to have income that was contributed to an AAT in 2011, 2012, and 2013 also qualify as earned income. Your RRSP limit will be recalculated for each of these years and any additional RRSP room will be added to your RRSP contribution room for You must make the election in writing before March 3, 2015 (include a statement from the trustee identifying the contributions made to the AAT), and send your election to Pension Workflow Section, Ottawa Technology Centre, 875 Heron Road, Ottawa ON K1A 1A2. DT Max Data Entry Within the RRSP keyword group, when the option Room and Limit is chosen, a new keyword has been added to input these contributions, ATHLETE-TRUST. Source: 5000-G General Guide Donations - Ecological gifts Schedule 1 line 342 The carry-forward period for gifts of ecologically sensitive land made after February 10, 2014, has been extended to 10 years. Source: 5000-G General Guide CPT20 Election to pay the Canada Pension Plan (CPP) As of the 2014 tax year, you can elect to make additional contributions to the Canada Pension Plan for certain employment income for which no deductions for the CPP were made. The form to elect and determine pensionable earnings is the CPT20. You can elect to pay Canada Pension Plan (CPP) contributions if: you were a resident of Canada for income tax purposes during the year, and you received income from any of the types of employment listed or you are an Indian registered, or entitled to be registered, under the Indian Act, and you earned tax-exempt, self-employed income on a reserve in Canada. To calculate the amount of your additional CPP contributions, complete and attach to your return a copy of Schedule 8, CPP Contributions on Self-Employment and Other Earnings, or Form RC381, Inter-provincial Calculation for CPP and QPP Contributions and Overpayments for 2013, whichever applies. Types of employment income include: A. Employment in Canada by more than one employer at the same time, with the result that the year's basic exemption used to withhold CPP and Quebec Pension Plan (QPP) contributions was more than $3,500 for the year. 7

8 Tax changes B. Employment that was pensionable employment where you received tips, gratuities, or other earnings from that pensionable employment from which the employer did not have to withhold CPP or QPP contributions. C. Employment outside Canada by a Canadian employer (including the federal government), and the employer has not agreed to cover the employment under the CPP. D. Employment in Canada by an international organization or by the government of another country, and the employer has not agreed to cover the employment in Canada under the CPP. E. Employment in Canada by an employer who is not resident in Canada, does not have an establishment in Canada, and has not undertaken to cover the employment in Canada under the CPP. F. Employment in Canada in agriculture or an agricultural enterprise, horticulture, fishing, hunting, trapping, forestry, logging, or lumbering for less than 25 days in the year or where the cash remuneration was less than $250. G. Employment in Canada of a casual nature, other than for the employer's trade or business. H. Employment in Canada by the federal or a provincial or municipal government or a school board for less than 35 hours in the year for any referendum or election for public office, if you were not regularly employed by that employer. I. Employment in Canada for less than seven days in the year (for example, at a circus, fair, parade, carnival, exposition, or exhibition), as long as you were not an entertainer and you were not regularly employed by that employer. J. Employment outside Canada where, under the laws of the other country, you did not have to contribute to a plan that is similar to the CPP. K. Employment in international transportation partly inside and partly outside Canada, and you were not required to contribute to a plan similar to CPP under the laws of a country other than Canada. L. Employment in Canada fighting a disaster or engaging in a rescue operation if you were not regularly employed by that employer. M. Employment in Canada if you are an Indian registered, or entitled to be registered, under the Indian Act who received a tax-exempt salary or wages from an employer who has not undertaken to cover the employment under the CPP. N. Self-employment in Canada if you are an Indian registered, or entitled to be registered, under the Indian Act who received tax-exempt self-employed earnings on a reserve. Enter details in the chart at the bottom of this page. O. Employment in Canada where you had multiple contracts of employment with the same employer, with the result that the year's basic exemption used to withhold CPP and QPP contributions was more than $3,500 for the year. P. Employment in Canada with more than one employer during the year, where one or more employer(s) did not withhold CPP contributions because the employer(s) did not receive a copy of your completed Form CPT30 revoking your election to stop contributing to CPP (Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election). DT Max Data Entry A new keyword has been added within the T4 keyword group, ELECTION-CPP to indicate the income from a T4 slip for which you can elect to pay CPP contributions. Choose Yes for this keyword, and then select the category of income from the keyword TYPE-OF-EMPLOY. To make an election for income that was not included in a T4 slip, use the keyword CPT20. Source: CPT20 Form 8

9 Tax changes Online Mail When you register for online mail, any notices and future correspondence eligible for online mail will no longer be mailed. Instead, you will receive an notification that there is mail for you to view on the My Account secure online service. A new line has been added to the T1 return to input your address. DT Max Data Entry As a first step, enter the client s address through the keyword . To have the address shown on the T1 return, add the keyword -CONDITIONS, and then choose Yes. Source: T1 General Guide QUEBEC Refundable tax credit for seniors activities TP1 line 462, code 28 Low- to moderate-income individuals age 70 or older who register for recognized programs of activities may claim a maximum refundable tax credit of $40 per year Determination of the tax credit An individual (other than an excluded individual) who, at the end of December 31 of a particular taxation year (or, if the individual dies during the year, on the day he or she dies), is resident in Québec and age 70 or older may claim the refundable tax credit for that year. The tax credit is equal to 20% of the lesser of $200 and the total eligible expenses paid during the year by the individual or the person who is the individual's spouse at the time of payment. Excluded individual For a particular taxation year, an excluded individual is an individual whose income for the year is more than $40,000 (which amount, beginning January 15, 2015, is to be indexed automatically each year according to the usual rules), or an individual who is exempt from income tax for the year or who is the eligible spouse of such an individual for the year. 9

10 Tax changes Eligible expenses An eligible expense of an individual for a particular taxation year is any amount paid by the individual to a person or partnership during the year as his or her registration or membership fee for a recognized program of activities offered by the person or partnership. However, at the time of payment, the individual must not be living in a private residence for seniors operated by the person or partnership and, unless the person or partnership is a Québec sales tax (QST) registrant, the individual must not be related to the person or partnership. The registration or membership fee for a program of activities offered by a person or partnership includes the costs related to the administration of the program, to the courses, to the rental of required facilities, and to the uniforms and equipment that participants in the program are unable to acquire for less than their fair market value at the time they are acquired. However, a registration or membership fee must not include any costs related to lodging, travel, food or beverages. Proof of payment To be able to claim an amount as an eligible expense for purposes of the tax credit, an individual must have proof of payment in the form of a receipt that contains the prescribed information and that is issued by the person or partnership that provided the recognized program of activities to the individual. Recognized program of activities For purposes of the refundable tax credit for seniors' activities, the following are considered recognized programs of activities: Effective date a weekly program running for at least eight consecutive weeks, where either physical activities or artistic, cultural or recreational activities are a significant part of all or substantially all the activities offered; a program running for at least five consecutive days, where either physical activities or artistic, cultural or recreational activities are a significant part of more than 50% of the daily activities; a program running for at least eight consecutive weeks that is offered to seniors by a club, an association or a similar organization and that allows participants to select from a variety of activities, where either physical activities or artistic, cultural or recreational activities are a significant part of more than 50% of the activities offered to seniors by the entity, or more than 50% of the time allowed for the activities offered to seniors is reserved for activities of which either physical activities or artistic, cultural or recreational activities are a significant part; a membership in a club, an association or a similar organization for a period of at least eight consecutive weeks, where either physical activities or artistic, cultural or recreational activities are a significant part of more than 50% of the activities offered to seniors by the entity; a part of a program (other than a recognized program of activities), where the part runs for at least eight consecutive weeks, is offered to seniors by a club, an association or a similar organization, allows participants to select from a variety of activities and represents the portion of the activities offered to seniors by the entity that are activities of which either physical activities or artistic, cultural or recreational activities are a significant part, or the portion of the time allowed for activities of the program that is reserved for activities of which either physical activities or artistic, cultural or recreational activities are a significant part; a part of a membership in a club, an association or a similar organization (other than a membership that constitutes a recognized program of activities), where the part covers a period of at least eight consecutive weeks and represents the portion of the activities offered to seniors by the entity that are activities of which either physical activities or artistic, cultural or recreational activities are a significant part. Any amount paid after June 4, 2014, as an eligible individual's registration or membership fee for a recognized program of activities is eligible for the tax credit for seniors' activities, provided such amount is attributable to activities that take place after that date. 10

11 Tax changes DT Max Data Entry The keyword SENIOR-ACTIVITIES has been added in order to enter the eligible expenses. Source: Budget - Additional Information on the Fiscal Measures LogiRénov home renovation tax credit TP-1 line 462, code 27 This refundable tax credit has been implemented on a temporary basis to encourage individuals, be they owners or co-owners of a dwelling, to renovate their principal residence, expand it, adapt it to the special needs of a family member or convert it into an intergenerational home. The renovation work must have been done by a qualified contractor under a contract entered into after April 24, 2014, and before July 1, The initial construction of the dwelling must have been completed before January 1, 2014, and the dwelling must be one of the following: a single-family home a pre-fabricated house or mobile home permanently secured in place an apartment in a building held in divided co-ownership (condominium) a dwelling in a residential duplex or triplex. The amount of the tax credit corresponds to 20% of the portion of an individual's eligible expenses that exceeds $3,000, up to a maximum tax credit of $2,500 per eligible dwelling. Amount of the tax credit If you were resident in Québec on the last day of 2014 or 2015, you may be entitled to the refundable LogiRénov tax credit, implemented to encourage you to have recognized renovation work done to your home to expand it, adapt it to the special needs of a family member or convert it into an intergenerational house. The work must have been done to an eligible dwelling that you own or co-own. You can claim the tax credit only with respect to your principal residence. That said, if you own an intergenerational house (This link will open a new window) that is your principal residence, you can elect, using the prescribed form, to consider each independent dwelling within the house as a single-family home that constitutes your principal residence and claim the tax credit in respect of both dwellings. For work that was paid for during the 2014 taxation year, you may be entitled to a tax credit equal to the lesser of the following amounts: $2,500, or 20% of the portion of your eligible expenses that exceeds $3,000 For work that was paid for during the 2015 taxation year, you may be entitled to a tax credit equal to the lesser of the following amounts: 20% of the portion of your eligible expenses for 2015 that exceeds the lesser of o o $3,000, or $3,000 minus the eligible expenses for 2014 (or $0, if the result is negative) $2,500 minus any amount received as a LogiRénov tax credit for the 2014 taxation year. Claiming the tax credit To claim the LogiRénov tax credit for the 2014 or 2015 taxation years, you must: enclose, with your income tax return for the year, the LogiRénov Home Renovation Tax Credit form (TP LR-V) 11

12 Tax changes have the contractor that carried out the work complete and sign a copy of form TP-1029.ER.A-V, Certificate of Compliance With Energy and Environmental Standards, if the work in question was recognized eco-friendly renovation work enclose, with your income tax return for the year, the election form (if applicable) completed by the individual who owns or co-owns an intergenerational house (the form will be available at the same time as the 2014 income tax return documents) obtain, from the contractor that carried out the work, the breakdown of costs for the goods and services provided for the various types of work, if not all the work done was recognized renovation work You must keep your supporting documents (estimates, invoices, etc.) for six years in case we ask for them. Recognized work Renovation of one or more rooms of the dwelling (kitchen, bathroom, washroom, bedroom, vestibule, living room, storage space, etc.) Division of rooms (knocking down walls or adding partitions) Finishing a basement, attic or an integrated garage or garage adjoining the dwelling Adaptation of the interior of the dwelling to the needs of a handicapped person or person suffering a loss of independence Replacement of the plumbing or electrical system Installation or replacement of a lighting system Refurbishing the floors (sanding and varnishing) Replacing floor coverings (rugs, linoleum, hardwood flooring, tile, etc.) Replacing doors that do not access to the exterior of the dwelling Changing the covering of interior walls and ceilings (paint, wallpaper, stone or brick walls, etc.) Replacing, building or modifying an interior stairway Installing blinds and shutters permanently fixed Installation of an alarm, security or home automation system Expansion of the living space of the dwelling, including work relating to the envelope and the mechanical systems of the additions to the dwelling if they satisfy the energy or environmental standards set by the EcoRenov tax credit Conversion of a house consisting of a single dwelling into an intergenerational house, including work relating to the envelope and the mechanical systems of the additions to the dwelling if they satisfy the energy or environmental standards set by the EcoRenov tax credit(4) Replacement of a weeping tile, sanitary drainage, fall pipe or foundation drain Repair of the foundations Water-proof sealing of the foundations Air sealing of the envelope of the dwelling or of a portion of it (walls, doors, windows, skylights, etc.) Pressure cleaning of the exterior siding Replacement of the exterior siding Painting the envelope of the dwelling Replacement of swing shutters Replacing soffits and fascia Replacement of the roofing and rainwater gutters 12

13 Tax changes Notes Repair of a chimney Replacing a garage door for a garage integrated into or adjoining the dwelling No structures adjoining or accessory to the dwelling, other than an adjoining garage or carport, will be considered part of an individual's eligible dwelling. For example, steps, patios, balconies, sheds, gazebos, outdoor hot tubs and outdoor swimming pools are not considered part of an eligible dwelling. In the case of an apartment in a building held in divided co-ownership (condominium), only the private portion (that is, the portion that an individual owns exclusively) will be considered an eligible dwelling. Common portions are therefore excluded, regardless of whether they are for restricted use or not. For example, the foundations and main walls of buildings, common equipment and apparatus (such as the central heating and air-conditioning systems and the piping and wiring) are not considered part of an eligible dwelling. If, in 2014, you reach the maximum tax credit in respect of a single dwelling, you cannot claim the tax credit in 2015 in respect of the same dwelling. In addition, you must subtract from your eligible expenses the amount of any government assistance (except assistance received under the Rénoclimat program), non-government assistance or other assistance you received, including indemnities paid under an insurance contract. If you are the co-owner of an eligible dwelling, you can split the amount of the tax credit with the other coowners, provided the dwelling is the principal residence of all the co-owners. However, the total amount claimed in respect of the dwelling cannot exceed $2,500. DT Max Data Entry In order to claim the tax credit, add the keyword RENOVATION to the data entry, and choose the option for LogiRénov. Source: Revenu Quebec website Retirement Income transfer between spouse TP-1, line 123 The tax legislation has been amended to provide that, for the income splitting mechanism to be applicable in a particular taxation year, the person whose income is split must have reached 65 years of age before the end of the year, or, if the person died or ceased to be resident in Canada in the year, on the date of his or her death or on the date on which he or she ceased to be resident in Canada. This amendment will apply as of taxation year Source: Budget - Additional Information on the Fiscal Measures Bankruptcy Calculation of certain contributions In each of the two tax returns that you must fill in the case of a bankruptcy, you need to calculate the following contributions based on income subject to these contributions for the period covered by each of these statements: the contribution to the Quebec Parental Insurance Plan (line 439); the contribution to the Quebec Pension Plan (QPP) for self-employment (line 445); the contribution to the health services fund (line 446). However, regarding the QPP contribution for self-employment, you can choose to contribute to the plan only in the statement covering the period after the bankruptcy, but considering your income subject to the contribution for the entire calendar year. To make this election, check the box provided for this purpose on line 21 of your tax return income for the period prior to the bankruptcy; register the contribution payable on line 445 of the tax return for the period after bankruptcy 13

14 Tax changes Regarding the contribution to the Quebec Drug Insurance Plan (line 447) you have to calculate the contribution only the tax return covering the period after bankruptcy. You must complete Schedule K as if you did not go bankrupt. DT Max Data Entry When entering the BANKRUPTCY keyword with the option Pre-bankruptcy selected, a new keyword will appear to make the election, QPP-ELECTION. Choose amongst the options presented. If you have not filed a pre-bankruptcy return with DT Max, when completing the BANKRUPTCY keyword with the option Post-bankruptcy selected, go to the keyword PREBANK-QPP-ELECT, and choose the relevant option. Source: TP-1.G General Guide Voluntary retirement savings plans (VRSPs) The VRSP is a new retirement savings plan offered to employees at 18 years who do not have access to a group retirement savings plan offered by their employer. The VRSP is also available to self-employed and anyone who wishes to join. You can claim a deduction on line 214 of your return for the contributions you make to a VRSP. Note that withdrawals from VRSP are taxable and must be reported on line 122. DT Max Data Entry Enter the VRSP contributions within the RRSP keyword group. Source: TP-1.G General Guide NEWFOUNDLAND AND LABRADOR Venture capital tax credit NL428, Line 63 You can claim a credit for investments you made in a qualifying venture capital fund in 2014 or in the first 60 days of Enter on line 63 of Form NL428 the credit shown on the Certificate(s) NL VCTC. The maximum you can claim is $75,000. Supporting documents If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your Certificate(s) NL VCTC. DT Max Data Entry Use the keyword NLVC-VENT-CAP-CR within the keyword group PROV-CREDIT to enter this amount. Source: 5001 PC Information for Residents of Newfoundland and Labrador NOVA SCOTIA Age Tax Credit NS428, Line 79 You can claim this credit if you met all of the following conditions: you were a resident of Nova Scotia on December 31, 2014; you were 65 years of age or older on or before December 31, 2014; and your taxable income from line 260 of your return was less than $24,000. If you qualify for this credit, enter $1,000 on line 79 of Form NS428. If you are preparing a return for a resident of Nova Scotia who died in 2014, you can claim this credit on the deceased person s final return if he or she was 65 years of age or older on the day of death and his or her taxable income was less than $24,

15 Tax changes DT Max Data Entry If the criteria are met, DT Max will claim this credit automatically. Source: 5003 PC - Information for Residents of Nova Scotia ONTARIO Community food program donation tax credit for farmers ON428 line 71 You can claim the community food program donation tax credit for farmers if: you were a resident of Ontario at the end of the year; you or your spouse or common-law partner was a farmer; you made a qualifying donation to an eligible community food program in the year; and you have claimed the qualifying donation on line 340 of your federal Schedule 9 and on line 29 of your Form ON428 as a charitable donation or gift for the year. A qualifying donation is a donation of one or more agricultural products produced in Ontario and donated to an eligible community food program in Ontario on or after January 1, An agricultural product is any of the following: meat or meat by-products; eggs or dairy products; fish; fruits, vegetables, grains, pulses, herbs, nuts, or mushrooms; honey or maple syrup; or anything else that is grown, raised or harvested on a farm and can legally be sold, distributed, or offered for sale at a place other than the producer s premises as food in Ontario. An item of any of these types that has been processed is an agricultural product if it was processed only to the extent necessary to be legally sold off the producer s premises as food intended for human consumption. Items that have been processed beyond this point, such as pickles, preserves and sausages, are not agricultural products. An eligible community food program is a registered charity under the Income Tax Act that meets one of the following conditions: it distributes food to the public without charge in Ontario and does so primarily to provide relief to the poor (food banks meet this condition); or it operates or oversees one or more student nutrition programs. The amount of qualifying donations can be split between spouses or common-law partners. However, the total amount of qualifying donations that can be claimed by spouses or common-law partners cannot be more than the total of the qualifying donations made in the tax year. If you are preparing a return for a person who died in 2014, you can claim this credit on the deceased person s final return. If you were bankrupt in 2014, claim your community food program donation tax credit on either the pre- or postbankruptcy return you file for the tax year ending December 31, 2014, depending on when the qualifying donations were made. If qualifying donations are claimed on more than one return, the total amount of donations that can be claimed on all returns filed for the year cannot be more than the total qualifying donations made. 15

16 Tax changes How to claim Enter beside box 6098 the amount of donations you have included on line 340 of your federal Schedule 9 that are qualifying donations for the community food program donation tax credit for farmers. Then enter 25% of this amount on line 71 of Form ON428. Source: 5006 PC - Information for Residents of Ontario DT Max Data Entry Add the keyword DONATIONS, and select the option Ontario community food program donation for farmer. Enter the donation amount. The amount entered will reflect as a regular donation on the Federal return and the ON428. MANITOBA Manitoba employee share purchase tax credit MB428, line 64 You can claim this non-refundable tax credit for shares you acquired from a registered employee share ownership plan (ESOP) at any time in Your Manitoba employee share purchase tax credit is shown on your ESOP receipt(s). To claim the credit, complete Form T1256-2, Manitoba Employee Share Purchase Tax Credit. You can get this form from the CRA website or by contacting us (read For more information on page 1 of this book). Enter on line 64 of Form MB428 the amount from line 12 of Form T DT Max Data Entry Complete the keywords ESOP-SUCCESSION and ESOP-COOPERATIVE within the group PROV-CREDIT, whichever is applicable. 16

17 APPENDIX 1: TAX RATES AND CREDITS

18 Non refundable tax credits grey background - values that changed in 2014 white background - values that stay the same as in 2013 Lines Description Fed NL PE NS NB QC ON MB SK AB BC YT NT NU 300 & 5804 Basic amount 11,138 8,578 7,708 8,481 9,472 11,305 9,670 9,134 15,378 17,787 9,869 11,138 13,668 12, & 5808 Age amount 6,916 5,476 3,764 4,141 4,625 2,435 4,721 3,728 4,684 4,957 4,426 6,916 6,686 9, & & & 5825 Spousal 11,138 7,009 6,546 8,481 8,043 8,211 9,134 15,378 17,787 8,450 11,138 13,668 12,567 (if infirm) 13,196 13,196 Eligible dependant 11,138 7,009 6,294 8,481 8,043 8,211 9,134 15,378 17,787 8,450 11,138 13,668 12,567 (if infirm) 13,196 13,196 Child amount 2,255 2,255 (if infirm) 4,313 4, & 5820 Infirm dependant 6,589 2,724 2,446 2,798 4,473 4,558 3,605 9,060 10,296 4,318 6,589 4,530 4, Dependant child 5, Senior supplement 1, Amount for young children 100 per month 100 per month 1, & 5824 CPP/QPP contrib. salaried 310 & 5828 CPP/QPP contrib. self-employed 2, , , , , , , , , , , , , , max earnings - 52,500 rate % (QC 5.175%) 312 & 5832 EI contrib. salaried 317 & 5829 EI contrib. self-employed max earnings - 48,600 rate % (QC 1.53%) 375 / 376 QPIP contrib. salaried 378 QPIP contrib. self-employed max earnings - 69,000 rate % new Volunteer firefighters' amount Search and rescue volunteers amount 3,000 3,000 3,000 line 5830 refundable refundable see QC section Q tax credit 5831 Child care amount amount of F & 5834 Employment amount 1,127 1, Credits and Rates.xls -- Credits revision 3 - November / 3

19 Non refundable tax credits grey background - values that changed in 2014 white background - values that stay the same as in 2013 Lines Description Fed NL PE NS NB QC ON MB SK AB BC YT NT NU 365 & 5838 Children's fitness amount 1, ,000 refundable refundable refundable Supplement & 5841 Fitness amount 500 Supplement 500 Children's arts amount refundable refundable refundable Supplement & 5837 Home buyers' amount 5,000 10, & 5833 Adoption expenses 15,000 11,575 refundable 11,797 10,000 12,165 15,000 15, & 5836 Pension income 2,000 1,000 1,000 1,173 1,000 2,160 1,337 1,000 1,000 1,370 1, ,000 2, & & & Caregiver 4,530 2,724 2,446 4,898 4,473 refundable 4,557 3,605 9,060 10,296 4,318 4,530 4,531 4,531 (if infirm) 6,588 6,588 Disability amount Disability transfer 7,766 5,788 6,890 7,341 7,668 2,570 7,812 6,180 9,060 13,720 7,402 7,766 11,084 12,567 Supplement 4,530 2,724 4,019 3,449 4,473 4,557 3,605 9,060 10,296 4,319 4,530 4,530 4,530 Sport and recreational expenses for children 5850 Teacher school supply 500 Tuition / Education & part-time education textbook & full-time education textbook & 5860 Tuition transfer 5,000 5,000 5,000 5,000 5,000 6,686 5,000 5,000 5,000 5,000 5,000 5,000 5, & 5868 Medical expenses threshold 2,171 1,868 1,678 1,637 2,144 2,188 1,728 2,171 2,298 2,052 2,171 2,171 2, & & 5896 Medical expenses (other dependants) no limit no limit no limit no limit no limit 11,797 no limit no limit no limit no limit no limit 5,000 no limit Attendant care 10,000 10,000 10,000 10,000 10,000 13,372 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Adapted van 5,000 5,000 5,000 5,000 5,000 6,686 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Moving a patient 2,000 2,000 2,000 2,000 2,000 2,674 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Donations / gifts (1) first $200 at 15% 7.7% 9.8% 8.79% 9.68% 20% 5.05% 10.8% 11% 10% 5.06% 7.04% 5.9% 4% (2) excess at 29% 13.3% 16.7% 21% 17.95% 24% 11.16% 17.4% 15% 21% 14.7% 12.76% 14.05% 11.5% Political contributions refundable , refundable 500 refundable 2014-Credits and Rates.xls -- Credits revision 3 - November / 3

20 Non refundable tax credits grey background - values that changed in 2014 white background - values that stay the same as in 2013 Lines Description Fed NL PE NS NB QC ON MB SK AB BC YT NT NU Q201 Deduction for workers 1,112 Q358 Adjustment for income replacement indemnities 10, Q361 Living alone 1,325 Single-parent 1,640 Base amount 3,280 Q367 Post-secondary 4,170 Other dependants 3,035 Q390 Q391 Emergency services volunteers amount Amount for workers 65 or older 16% 15.04% 2014-Credits and Rates.xls -- Credits revision 3 - November / 3

21 Tax brackets and rates Tax Brackets and rates Surtax Thresholds & rates Notes Fed NL PE NS NB QC 0 - $43,953 - $87,907 - more than $43,953 $87,907 $136,270 $136, % 22 % 26 % 29 % 0 - $34,254 - more than $34,254 $68,508 $68, % 12.5 % 13.3 % 0 - $31,984 - more than $31,984 $63,969 $63,969 $12, % no change 9.8 % 13.8 % 16.7 % 0 - $29,590 - $59,180 - $93,000 more than $29,590 $59,180 $93,000 $150,000 $150,000 nil no change 8.79 % % % 17.5 % 21 % 0 - $39,305 - $78,609 - more than $39,305 $78,609 $127,802 $127, % % % % 0 - $41,495 - $82,985 - more than $41,495 $82,985 $100,970 $100, % 20 % 24 % % ON MB SK 0 - $40,120 - $80,242 - $150,000 - more than $40,120 $80,242 $150,000 $220,000 $220,000 $4, % new bracket 5.05 % 9.15 % % % % $5, % 0 - $31,000 - more than $31,000 $67,000 $67,000 no change 10.8 % % 17.4 % 0 - $43,292 - more than $43,292 $123,692 $123, % 13 % 15 % AB 10 % (one tax bracket) no change BC 0 - $37,606 - $75,213 - $86,354 - $104,858 - more than $37,606 $75,213 $86,354 $104,858 $150,000 $150,000 new bracket 5.06 % 7.7 % 10.5 % % 14.7 % 16.8 % YT NT NU 0 - $43,953 - $87,907 - more than $43,953 $87,907 $136,270 $136, $ 5 % 7.04 % 9.68 % % % 0 - $39,808 - $79,618 - more than $39,808 $79,618 $129,441 $129, % 8.6 % 12.2 % % 0 - $41,909 - $83,818 - more than $41,909 $83,818 $136,270 $136,270 4 % 7 % 9 % 11.5 % 2014-Credits and Rates.xls -- Rates Initial - June / 1

22 Dividends Gross-up factor other than eligible eligible Notes Fed % % NL 5 % 11 % up to June % 5.4 % PE 3.2 % 10.5 % NS % 8.85 % NB 5.3 % 12 % no change QC 7.05 % 11.9 % ON 4.5 % 10 % MB 0.83 % 8 % SK 3.4 % 11 % AB 3.1 % 10 % BC 2.59 % 10 % YT 4.03 % % NT 6 % 11.5 % no change NU % 5.51 % 2014-Credits and Rates.xls -- Dividends Initial - June / 1

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