What’s New For Tax Year 2018?

Tax law changes that affect most taxpayers:
  • Climate Action Incentive
    This is a new refundable credit that is available for every adult taxpayer who lived in Ontario, Manitoba, Saskatchewan and New Brunswick (unless you were confined in prison for 90+ days in 2018).
  • Medical Expenses
    Eligible medical expenses have been expanded to include a variety of expenses relating to service animals specially trained to perform specific tasks for a patient with a severe mental impairment.
  • Tax on split income (TOSI)
    As of January 1, 2018, in addition to applying to certain types of income of a child born in 2001 or later, TOSI may now also apply to amounts received by adult individuals from a related business. This is a punitive tax with the highest tax rate to prevent so-called income sprinkles.
  • Public transit amount
    This federal credit was eliminated in July 1, 2017 and removed from 2018 federal Schedule 1.
Provincial Tax Changes
  • British Columbia
    The former amount for infirm dependants age 18 or older and caregiver amount have been replaced by the new British Columbia caregiver amount, its eligibility is the same as federal caregiver amount. Once you claim federal caregiver amount, the provincial credit will be claimed automatically. Healthy parents age 65+ are no longer eligible for the new care giver amount credit.

    The children’s fitness amount, children’s fitness equipment amount, children’s art amount and the education coaching amount have been discontinued.

  • Manitoba
    The primary caregiver tax credit has changed.

    The tuition fee income tax rebate, the advance tuition fee income tax rebate and the nutrient management tax credit have been eliminated.

    The odour-control tax credit has been eliminated, but unused carry forward amounts can still be claimed.

  • Ontario
    The Ontario tuition and education tax credits have been discontinued. Students can continue to carry forward unused amounts to claim in a future year.
  • Saskatchewan
    The personal income tax rates have been reduced for all taxable income levels.

    The tuition and education tax credits have been discontinued. Students can continue to carry forward unused amounts to claim in a future year.

  • Nova Scotia
    The age amount, the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant have increased for individuals with a taxable income of $25,000 or less. The increase is phased out for taxable income between $25,000 and $75,000. The software will calculate these credit automatically.