It’s my favourite time of year again: tax return time!
To kick things off, we’ve updated our Canadian tax return checklist. This checklist is amazing; not only does it list all the documents you might need, but it highlights what’s new and shows you what you can automatically get through CRA’s Auto-fill my return. And, it’s a checklist. Everyone loves checklists.
If for some reason you don’t love checklists (presumably because your heart is made of ice), or if you’re wondering what’s new, here’s what you need to know:
- Reporting the sale of your principal residence. You now need to report the sale of your principal residence on your tax return. This change is just a reporting requirement and it won’t impact your taxes.1
- New school supply tax credit. Teachers and early childhood educators can now claim up to $1,000 for eligible school supplies.
- New home accessibility tax credit. Seniors and those who qualify for the disability tax credit can now claim up to $10,000 for certain types of renovations.
There are several other changes (like the new federal tax rates) that won’t impact how you prepare your return. If you’d like to know more about those changes, I recommend reading the CRA’s roundup.
While NETFILE won’t open until Feburary 20th, SimpleTax 2016 is ready for you to get a head start on your return. Have fun!
1 If your home wasn't your principal residence for all the years you owned it, you'll still be subject to tax on your capital gain. Your capital gain is prorated based on the number of years your home wasn't your principal residence. We do this calculation for you in the app.