Tax Season is here again!

2016 Tax-Filing Season – Canada

Ladies and gentleman, 2016 Tax season is fast approaching! In case, you are still busy enjoying your leftovers Christmas turkey:)  Pull up your socks and start preparing yourself for 2015 tax return. Don’t worry you are not too behind. You still have time to start gathering your 2015 information slips, and receipts. Tax slips will start arriving in your mailbox in a month or so. Few Canadians do have the luxury to obtain their information slips online by logging onto their workplace payroll account. If you have to file a return for 2015, file it on time even if some slips or receipts are missing.

taxes

Hold on your horses, you will only able to take advantage of Liberal “middle-class tax break” next year. It will reduce the federal tax rate for the Canadians on income between $45,282 and $90,563 and their tax rate will fall to 20.5% from 22%. According to the government, this tax relief is worth maximum up to $670 per person annually or $1340 for a two-income household. Roughly, 9 million Canadians should able to take advantage of this new tax break. It is always a good idea to review your financial plan periodically to stay on track with all these changes.

What do you need to file your 2015 tax return?

–       Personal Identification and current address (SIN#, marital status, Province of residence)

–       2014 notice of assessment or reassessment

–       Information Slips (T4, T4A, T4A (OAS), T4A (P), T4E, T4RSP, T5007, RC62, RC210)

–       Receipts (T2202A or other tuition slips, donation, medical, childcare expenses receipts)

–       Moving expenses receipts

–       RRSP contribution receipts

–       Record of unreimbursed employment related expenses

–       Self-employment expenses receipts

–       Graduate Retention Program Eligibility Certificate( Saskatchewan-specific)

Also, you need to know important dates and tax rates. Generally, your personal return has to be filed on or before April 30, 2015. Last year, CRA was forced to push personal tax filing deadlines by 5 days because of human error. Always check CRA website to get the latest information on tax filing deadlines and tax rates.

Filing of Personal Tax Returns

General –   May 02

Self-employed Individual and spouse – June 15

Final payment of Income Tax

General –   May 02

Self-employed Individual and spouse – May 02

Federal tax rates for 2015

  • 15% on the first $44,701 of taxable income, +
  • 22% on the next $44,700 of taxable income (on the portion of taxable income over $44,701 up to $89,401), +
  • 26% on the next $49,185 of taxable income (on the portion of taxable income over $89,401 up to $138,586), +
  • 29% of taxable income over $138,586.

Provincial/territorial tax rates for 2015

Newfoundland and Labrador

7.7% on the first $35,008 of taxable income, +

12.5% on the next $35,007, +

13.3% on the amount over $70,015

Prince Edward Island

9.8% on the first $31,984 of taxable income, +

13.8% on the next $31,985, +

16.7% on the amount over $63,969

New Brunswick

9.68% on the first $39,973 of taxable income, +

14.82% on the next $39,973, +

16.52% on the next $50,029, +

17.84% on the amount over $129,975

Ontario

5.05% on the first $40,922 of taxable income, +

9.15% on the next $40,925, +

11.16% on the next $68,153, +

12.16% on the next $70,000, +

13.16 % on the amount over $220,000

Manitoba

10.8% on the first $31,000 of taxable income, +

12.75% on the next $36,000, +

17.4% on the amount over $67,000

Saskatchewan

11% on the first $44,028 of taxable income, +

13% on the next $81,767, +

15% on the amount over $125,795

Alberta

10% of taxable income

British Columbia

5.06% on the first $37,869 of taxable income, +

7.7% on the next $37,871, +

10.5% on the next $11,218, +

12.29% on the next $18,634, +

14.7% on the next $45,458, +

16.8% on the amount over $151,050

Yukon

7.04% on the first $44,701 of taxable income, +

9.68% on the next $44,700, +

11.44% on the next $49,185, +

12.76% on the amount over $138,586

Northwest Territories

5.9% on the first $40,484 of taxable income, +

8.6% on the next $40,487, +

12.2% on the next $50,670, +

14.05% on the amount over $131,641

 

Nunavut

4% on the first $42,622 of taxable income, +

7% on the next $42,621, +

9% on the next $53,343, +

11.5% on the amount over $138,586

 

Quebec

Go to Income tax rates (Revenu Québec Web site). http://www.revenuquebec.ca/en/citoyen/situation/nouvel-arrivant/regime-fiscal-du-quebec/taux-imposition.aspx

 

 

Source: Canada Revenue Agency

http://www.cra-arc.gc.ca/menu-eng.html

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