You can claim to a maximum of $500 per child for the fees paid in 2011 relating to the cost of registration or membership of your or your spouse's or common-law partner's child in a prescribed program of artistic, cultural, recreational, or developmental activity. To qualify for this amount, a program must be ongoing (either a minimum of eight consecutive weeks long or, in the case of children's camps, five consecutive days long); be supervised; and be suitable for children.
The program also has to meet one of the following criteria:
- it contributes to the development of creative skills or expertise in an artistic or cultural activity;
- it provides a substantial focus on wilderness and the natural environment;
- it helps children develop and use particular intellectual skills;
- it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
- it provides enrichment or tutoring in academic subjects.
Note
An activity that develops creative skills or expertise is only eligible if it is intended to improve a child's dexterity or co-ordination, or helps in acquiring and applying knowledge through artistic or cultural activities such as literary arts, visual arts, performing arts, music, media, languages, customs, and heritage.
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Important facts for employers:
- Starting January 1, 2012, you must deduct CPP contributions for all employees aged 60 to 65-even if the employee is receiving a CPP or Quebec Pension Plan (QPP) retirement pension and did not contribute previously.
- You must also deduct CPP contributions for all employees who are 65 to 70 years of age unless they elect not to contribute to the CPP by giving you a signed and completed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. They must also send the original to the Canada Revenue Agency (CRA).
- Your employees cannot contribute to the CPP after the month in which they turn 70 years of age.
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RESP contributions cannot be deducted from your income on your return. In addition, you cannot deduct the interest you paid on money you borrowed to contribute to an RESP. Human Resources and Skills Development Canada (HRSDC) provides an incentive for parents, family and friends to save for a child's post-secondary education by paying a grant based on the amount contributed to an RESP for the child. The CESG money will be deposited directly into the child's RESP. No matter what your family income is, HRSDC pays a basic CESG of 20% of annual contributions you make to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year), and a lifetime limit of $7,200. HRSDC will also pay an additional CESG amount for each qualifying beneficiary. The additional amount is based on your net family income and can change over time as your net family income changes. For 2011, the additional CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:
- 40% (extra 20% on the first $500), if the child's family has qualifying net income for the year of $41,544 or less; and
- 30% (extra 10% on the first $500), if the child's family has qualifying net income for the year that is more than $41,544 but is less than $83,088
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As part of Ontario's implementation of the Harmonized Sales Tax (HST), the Ontario Sales Tax Transition Benefit (OSTTB) provides temporary relief to residents of Ontario to help them adjust to the Harmonized Sales Tax (HST) which came into effect on July 1, 2010.
The Canada Revenue Agency (CRA) administers the program through the personal income tax system. Since the OSTTB program is time limited, and no benefit will be paid after April 30, 2013, it is important that you file your 2009 income tax return by April 30, 2011 and your 2010 income tax return by April 30, 2012.
The maximum (non-taxable) benefit amount is $300 for single people and $1,000 for families (including single parents). This is reduced/phased out for single people whose net income is $80,000 - $82,000 and it is reduced/phased out for families whose family net income is $160,000 - $166,600.
The first 2 payments have been made (June 2010 and December 2010) and the third payment will be made in June 2011.
For more information on this, see the Ontario Ministry of Finance.
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If you were a single parent on December 31, 2010, you can choose to include all UCCB amounts you received in 2010 in the income of a dependant.
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If you received U.S. Social Security benefits in 2010, you may be eligible to claim a deduction of 50% of the benefits received. See Exempt Foreign Income.
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You may be able to enter into an agreement with the Canada Employment Insurance Commission through Service Canada to participate in the new Employment Insurance (EI) Measure for Self-Employed People. For more information on this, see Service Canada.
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Cosmetic procedures and related expenses qualify as a medical expense when incurred after March 4, 2010, only if they are required for medical or reconstructive purposes.
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As of July 1, 2011, for deaths occurring after March 3, 2010, the existing RRSP rollover rules will be extended to allow a rollover of a deceased individual's RRSP proceeds to the RDSP of the deceased individual's financially dependent infirm child or grandchild. These rules will also apply to amounts transferred to an RDSP from registered retirement income fund (RRIF) proceeds and certain lump-sum amounts paid from registered pension plans (RPP). In addition, where the death of an RRSP annuitant occurs after 2007 and before 2011, special transitional rules will allow a contribution to be made to the RDSP of a financially dependent infirm child or grandchild of the annuitant that will provide a similar result to these measures.
To be eligible, the contribution to an RDSP can only be made after June 30, 2011, and, when the death of the annuitant occurs after 2007 and before 2011, the contribution must be made before 2012. This means individuals will have six months in which to make the contribution to an RDSP. For more information, see RDSP.
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On January 1, 2011, new filing criteria for the partnership information return will come into effect. The new filing criteria will apply to partnerships with fiscal periods ending on or after January 1, 2011. For partnerships with fiscal periods ending on or before December 31, 2010, the current criteria still apply.
The CRA is replacing the requirement about the number of partners in a partnership with a requirement related to financial thresholds, and clarifying the requirements for the types of partners.
Effective January 1, 2011, a partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a T5013 for each fiscal period of the partnership:
- If, at the end of the fiscal period,
- the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million, or has more than $5 million in assets; or
- If, at anytime during the fiscal period,
- the partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership);
- the partnership has a corporation or a trust as a partner;
- the partnership invested in flow-through shares of a principal-business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership; or
- the Minister of National Revenue requests one in writing
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My Payment is a new payment option that allows individuals and businesses to make payments online, direcly through the Canada Revenue Agency (CRA) Web site. This service is currently only available to those who have online banking capabilities with BMO (Bank of Montreal), Scotiabank, TD Canada Trust and RBC Royal Bank. Other banks are expected to be added. Some of the remittances types are as follows:
- individual income tax
- child and family benefits repayments
- goods and services tax/harmonized sales tax
- payroll deductions
- corporation income tax
- excise duty
- excise tax
For more infomation, see My Payment Questions and Answers on the CRA website.
To begin using, see My Payment.
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A newly created savings vehicle, contributions you make to the TFSA are made with after-tax dollars but withdrawals are tax-free. Details from the Conservative Budget as follows:
- Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward from year to year.
- Contributions will not be deductible.
- Capital gains and other investment income earned in a TFSA will not be taxed.
- Withdrawals will be tax-free.
- Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
- Withdrawals will create contribution room for future savings.
- Contributions to a spouse’s or common-law partner’s TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death.
- Qualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
- The $5,000 annual contribution limit will be indexed to inflation, if applicable, in $500 increments.
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February 29, 2012 is the deadline for contributing to a Registered Retirement Savings Plan (RRSP) for the 2011 tax year. December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP.
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The purpose is to assist first-time home buyers with the costs related to the purchase of a home. A 15-per-cent credit will be applied to a $5,000 amount, and will provide up to $750 in tax relief to reduce the costs associated with first home purchases completed after January 27, 2009.
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The purpose is to provide first-time home buyers with additional access to their RRSP savings to purchase or build a home. The Home Buyers’ Plan withdrawal limit is $25,000 for withdrawals made after January 27, 2009. Your first repayment is due the second year following the year in which you made your withdrawals. You have up to 15 years to repay the amount to your RRSP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew until the full amount is repaid to your RRSPs. You have to buy or build the qualifying home before October 1 of the year after the year of withdrawal.
The Lifelong Learning Plan allows you to withdraw up to $20,000 (limit of $10,000 annually) from your RRSPs to finance training or education for you or your spouse or common-law partner. You cannot use your RRSP to fund a child's education.
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Effective January 1, 2009 the Canada Revenue Agency administers Ontario's corporate taxes and the Corporations Information Act Annual Return. This means for tax years ending in 2009 or later, corporations that have a permanent establishment in Ontario file a single return (T2 Corporations Income Tax Return) with the CRA. The single return will include the following:
Corporate income tax, including refundable tax credits
Corporate minimum tax
Capital tax
Special additional tax on life insurance corporations
Annual Information Return
Combined Ontario and federal corporation tax instalment payments for tax years ending in 2009 or later should be sent to the CRA.
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Employees pay some, if not all, of their income tax through source deductions withheld and remitted by the employer. However, if an employee has a change in personal circumstances that has an impact on the source deduction and has not filed the appropriate form with the employer, the result could be taxes owing at the end of the year. In these instances, Canada Customs and Revenue Agency does not usually charge interest or penalty on amounts that should have been paid over the year, provided the outstanding amount is submitted with the return when due.
Self-employed and certain other individuals may be required to submit their income tax in quarterly instalments throughout the taxation year. Failure to make adequate instalment payments could result in interest and penalty charges.
Corporations normally make monthly instalment payments throughout the year. Canada Customs and Revenue Agency charges interest on late or insufficient instalment payments.
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Personal:
Individual tax return must be filed by April 30th. If you have a balance owing, it must be paid by April 30th.
Preparation and filing of a personal tax return (T1) must be completed annually and submitted to Canada Customs and Revenue Agency no later than April 30th of the following year. Any additional taxes owing must also be paid by April 30th or interest will be charged on the overdue amount. Even if you are unable to pay the taxes that you owe, you must still file your return by the April 30th deadline to avoid being charged a penalty.
Personal, self-employed:
If you, your spouse or common-law partner carried on a business during the tax year, your return has to be filed by June 15th. However, if you have a balance owing, it still must be paid by April 30th.
Instalments - If you are required to make instalment payments throughout the year, they are due on March 15, June 15, September 15, and December 15.
Partnerships - Most partnerships will file a partnership information return by March 31.
Corporations:
Tax return must be filed no later than 6 months after year-end, however, taxes are due within 2 or 3 months after year-end depending on the circumstances of the corporation. In addition, most corporations have to pay income tax in monthly or quarterly instalments.
Most corporations are required to pay any balances owing two months (or in some instances, three months) after the end of the fiscal year-end. Generally, for a Canadian Controlled Private Corporation, taxes owing are due 3 months after year-end. The payments are due even when the corporation has not filed its corporate income tax return. Instalment payments are due on the last day of every complete month of a corporation's tax year.
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Generally, you should keep your tax return and supporting documentation (including all receipts) in order to support your claims for six years.
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The Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct inaccurate or incomplete information or to disclose information they have not reported during previous dealings with the CRA. If the CRA accepts the disclosure, the taxpayer will have to pay the taxes or charges owing, plus interest, however, the taxpayer will not be subject to penalty or prosecution for those amounts accepted as a valid disclosure.
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- Please see our Printable Checklist on the Forms Page
- All information slips including: T4s,T4As, T5s,T3s,T4RIFs, T4RSPs, T4Es, T4APs, T4OASs
- 2010 Notice of Assessment
- Capital gains and losses (Stock disposition and Mutual fund summaries)
- Charitable donation receipts
- Childcare expense receipts
- Medical expense receipts
- Children's Fitness tax credit receipts
- Children's Arts tax credit receipts
- Annual union, professional or like dues
- Income tax instalments
- WSIB and T5007 forms
- Property taxes and/or rental receipts
- Rental income statements
- RRSP receipts
- Self employment expenses
- Transit passes
- Tuition and textbook receipts
- Employment expenses
- T2200 declaration of employment expenses
- TL2 claim for meals and lodging expenses
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