Don’t Miss the 2019 Tax Changes!

Written by Gwyneth James MBA CPA, CGA  Senior Partner

If you have been a little busy lately managing work, kids, or other responsibilities you may have missed a few changes to tax- and employment-related rates for 2019. Here’s a quick recap:

  • The maximum rate per kilometer that an employee or shareholder is allowed to claim for business travel increased from 55 to 58 cents (for the first 5,000 KMs, thereafter it’s 52¢)
  • The employee and employer CPP contribution rates for 2019 will be 5.1% – up from 4.95% in 2018, and contributions will top out at $2,748.90
  • Employee EI contribution rates for 2019 have decreased to 1.62% to a maximum of $860.22 (for employers the rate is 1.4x that: 2.268% to a max of $1,204.31
  • The maximum TFSA contribution for 2019 increased to $6,000 from $5,500
  • You can now claim the expense of a service animal under the medical expense tax credit
  • If you’re a low income or fixed income individual whose income remains the same year-to-year, you’re now able to call a dedicated automated phone line at Canada Revenue Agency to file your tax return. (You should have received an invitation letter with full instructions if you’re eligible.)
  • A new federal Climate Action Incentive refundable tax credit will appear on your 2018 personal tax return. Its value will vary depending on your marital status and number of children. A 10% supplement will be added for residents of small and rural communities (the City of Peterborough does not qualify for the supplement, but County residents will)

Stay tuned for further changes that may result from the 2019 Ontario Budget. They are encouraging people to provide their ideas and feedback through online and in-person consultations until February 9th.

Cody & James Chartered Professional Accountants