Contributing to your RRSP is not only a smart way to plan for the future, it can help grow your refund now. But how much should you contribute? Enter our redesigned RRSP calculator.
To access the RRSP calculator, go to the “RRSP Contributions & Deductions” section of SimpleTax then click the “Calculate” button. You can enter various contribution amounts and instantly see the impact on your refund or taxes owing. For the most accurate results, complete as much as your return as possible before using the calculator.
Your RRSP deduction limit is either 18% of your earned income or the amount set by the CRA — whichever is lower. Unused contribution room can be carried forward to future years. You can find your tax year 2019 RRSP deduction limit on line A of your notice of assessment or by logging into your CRA My Account. See more info here.
Tax season is almost here. NETFILE opens on February 24 (about a week later than last year) but you can start having tax fun with SimpleTax 2019 right away (you’re welcome).
Before you get started, here are some things you might find useful.
We’ve updated our Canadian Tax Return Checklist (including a version specifically for Québec residents) so you’ll know what slips, receipts, and documents you should have on hand. If you haven’t already done so, we recommend signing up for CRA My Account. Once you have a My Account set up, you can use Auto-fill to import tax information directly from the CRA into your SimpleTax return and tada! Part of your return will be completed for you. Auto-fill will be available on February 10.
There are several tax changes that may impact your return. Here’s a list of the major ones, federally and by province. Note, this list only includes credits and deductions that have been introduced or eliminated. It doesn’t include any changes to tax rates or tax brackets.
Schedule 1 has been deleted—fields now appear on the T1 General.
If you know the line numbers on the tax forms, watch out—many of these are changing. For example, line 101 (employment income) is now line 10100.
Enhancements to the Canada Pension Plan/Québec Pension Plan mean that part of your contributions are now a deduction from taxable income.
A Canada training credit has been added for working Canadians between the ages of 25-64. Learn more.
The working income tax benefit (WITB) has been renamed to Canada workers benefit (CWB).
The home buyers’ plan withdrawal maximum increased to $35K for withdrawals made after March 19, 2019. Learn more.
There’s a new form (T90) to report income exempt under the Indian Act.
The climate action incentive refundable credit now applies to Albertans. Learn more.
The education tax credit has been eliminated, but you can continue to use amounts that have been carried over from last year. (You can still claim tuition fees.)
The education property tax credit has been eliminated and occupancy costs are now based on school taxes paid. Learn more.
The tuition tax credit has been restored for 2019 and can be retroactively applied for 2017 and 2018 as a carry forward on your 2019 return.
The Climate Action Incentive has been eliminated.
There’s a new search and rescue volunteer tax credit.
No territorial changes.
There’s a new venture capital tax credit to help incentivize corporate investment in Nova Scotia businesses.
The innovation equity tax credit is a new credit available to eligible investors who invest in an approved corporation.
No territorial changes.
Low Income Individuals and Families (LIFT) is a new credit for low-income earners. Learn more.
Childcare Access and Relief from Expenses (CARE) is a new refundable credit for parents or caregivers whose net family income is <$150,000. Learn more.
Prince Edward Island
No provincial changes.
The Experience workers’ tax credit renamed to Tax credit for career extension.
The Tax credit for the restoration of a secondary residence has been eliminated.
The additional contribution for subsidized educational childcare has been eliminated.
No provincial changes.
There is a new provincial government carbon price rebate to help offset the cost of the federal carbon pollution pricing levy. Learn more.
This change is completely within your control. You can log in to your SimpleTax account and opt out of the data usage changes at any time. You can do this by going to your Account page, and then unchecking ‘Your tax return’ under the Data section. If you do opt out, all of your SimpleTax return data will remain encrypted with your password as the key.
This change gives you even more control over your data. Now you have the option of opting out of anonymous data collection, too. This aggregate data doesn’t include any personally identifiable information. We use it for analysis, to help us understand our customers and deliver the best products. But you can also opt out of this in the same Data section mentioned above.
We don’t sell your return data. We’re in the business of making it simple to file your taxes; we’re not in the business of selling data to third parties.
These changes do not apply to previous tax year data. Your data from 2012-2018 will remain encrypted with your password, regardless of your data consent.
If you do opt-in to the new policy, your data is still encrypted. The difference is that we will be able to decrypt your data without your password.
We’ve made these changes because we believe they’ll help us deliver an even better product and service experience to you. But if you choose to delete your account (which we hope you don’t) you can do so by logging in, going to the Account page, and clicking the red ‘Delete your account’ button. This will permanently delete any data associated with your return, and all your personal data, from SimpleTax.