Taxes
Each year, the CRA makes changes to income tax brackets and certain tax credits. It also makes improvements to benefits and services that are available to Canadians. Keep reading to learn more about CRA tax brackets in 2018, along with major changes to Canadian income tax rules, credits, and services for the 2017 tax year.
What is the 2018 Deadline to File Your Taxes on Time?
In 2018, the filing deadline is Monday, April 30. If either you or your spouse or common-law partner are self-employed, the deadline is extended until June 15, 2018, although any balances owing are still due April 30. The earliest you can file online is February 26, 2018. Late filers can expect to pay a penalty of 5 percent of their balance owing, plus 1 percent of their outstanding balance for each month their return is late, up to 12 months. Outstanding balances are also subject to interest charges, which compound daily. These interest charges will accrue on late-filing penalties as well.
What are Some of the Changes to Canadian Tax Credits in 2018?
In 2018, there is one new credit and two improved credits Canadians should know about.
The Canada Caregiver Credit
This non-refundable tax credit was created to replace the family caregiver credit, the credit for infirm dependents above the age of 18 and the caregiver credit. If you live with a spouse, child, parent or other dependent with impaired physical or mental abilities, this credit may apply to you.
The Disability Tax Credit (DTC)
Although this tax credit is not new, applications for the credit can now be certified by nurse practitioners across Canada.
The Medical Expenses Tax Credit
Expenses incurred to conceive a child are now eligible to be claimed under this credit. The credit applies even if you have no other medical conditions. It is retroactive, which means you can request a change to your income tax returns over the last ten years in order to include fertility-related expenses.
New Tax-Related Services from the CRA in 2018
Tax Forms and Guides
Are you in the habit of submitting your tax return through the mail? In 2018, the CRA will start mailing income tax forms to Canadians who file paper returns. This means you will no longer need to go to Canada Post, Caisse Populaire Desjardins, or Service Canada locations to pick up your printed tax forms and guides. If you would like to file a paper return in 2018 but have filed electronically in the past, you can download the forms online or order paper copies directly from the CRA.
File Your Taxes Over the Phone
File My Return is a new service created by the CRA to allow Canadians with low or fixed incomes to file their taxes over the phone. The process involves answering a few questions via an automated service. The service is free, secure and easy to use. It doesn't involve any forms or calculations. Eligible individuals will receive a letter inviting them to use the service, which will be available between February 26 and April 30, 2018.
The CRA BizApp
In 2018, small business owners can download the new CRA BizApp. This mobile application is available 21 hours a day (from 6 a.m. to 3 a.m. EST) and makes it possible to access the following accounts: • Corporation income tax • Payroll • Excise duty • GST/HST accounts (unfortunately, the app does not grant access to accounts managed by Revenu Quebec). With the new CRA BizApp, you can also view and pay outstanding balances, view your transactions, see your anticipated GST/HST returns and consult the status of your GST/HST return or corporate income return.
To sign into the app, you will need to use the same login credentials you use for other online services offered by the CRA. If you do not yet have a CRA user ID and password, you will need to register for access. If you are a small business owner or sole proprietor, you can do this by visiting the CRA's My Business Account.
