Spring is finally here, and with it, as we all know, comes tax season. I would like to take a moment to fill you in on the main initiatives our government has put in place to help you keep more money in your pockets and on the important tax breaks and incentives you should know about before you file your tax return for 2018.
Since 2015, our government has been looking for every opportunity to improve the lives of families here and across Canada. We started by lowering taxes for nine million middle-class Canadians, a measure that has meant an average savings of $330 for single individuals who are eligible and $540 for couples.
We also invested in improving quality of life for seniors. After a lifetime of hard work, our seniors deserve to have confidence in their retirement. We enhanced the Canada Pension Plan and restored the age of eligibility for Old Age Security benefits, which had been raised to 67 years under the previous government, back to 65. We increased the Guaranteed Income Supplement (GIS) by nearly $1,000 a year for our most vulnerable seniors, thereby improving the financial security of close to 900,000 low-income seniors and lifted more than 57,000 seniors out of poverty.
Our government also followed through on its commitment to support hard-working small business owners by lowering the small business tax rate from 11% to 9%, saving them up to $7,500 per year.
These investments are just some of the key ways we are improving the lives of Canadians. They have helped create over 900,000 new jobs since 2015 and have allowed our country to record its lowest unemployment rate in over four decades.
So, in this tax season, maximize your tax savings by learning about the different federal deductions and credits to which you and your family might be entitled. You may be eligible for:
Middle Class Tax Cut
One of our first actions as a government was to lower taxes for nine million middle-class Canadians, a measure that has resulted in annual savings of up to $330 for single Canadians and $540 for couples.
Increases to Old Age Security and the Guaranteed Income Supplement
Seniors can now receive up to $1,700 more per year thanks to increases in Old Age Security and the Guaranteed Income Supplement.
More Generous Canada Child Benefit
Since 2016, nine in 10 families in Canada have been receiving an average of $2,300 more to help with the costs of raising children as a result of the more generous, tax free Canada Child Benefit. If your family is expecting, or has recently welcomed a new child, make sure to update your file using CRA’s MY ACCOUNT to ensure you are receiving the support payments you are entitled to.
Small Business Tax Cut
Small business can now save up to $7,500 a year with the Small Business Tax Cut. As promised, we reduced the small business tax rate from 11% to 9%, making it the lowest of all the G7 countries. For information on available funding and grants, please visit: www.ic.gc.ca.
Remember that April 30th is the deadline for filing your 2018 income tax.
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