What's New -> What's New 2013
What's New by Month in 2013
December 2013Automobile Taxable Benefit Rates Unchanged for 2014
The rate for calculating the operating cost benefit portion of automobile taxable benefits remains at $0.27 per km. The rate for automobile sales people remains at $0.24 per km. The automobile standby charge remains unchanged.
Tax-Free Vehicle Allowance Rates Unchanged for 2014
The limits for tax-free vehicle allowances paid to employees by their employers remains at $0.54 per km for the first 5,000 kms, and $0.48 for additional kilometres. Allowances for the Territories are 4 cents higher, and are also unchanged.
Passenger Vehicle Expense Limits Unchanged for 2014
The cost ceiling for CCA purposes remains at $30,000, leasing cost limit remains at $800 per month, and maximum interest deduction remains at $300 per month.
Donation Deadline 2013
A donation must be received by the charity on or before December 31, 2013 in order for them to issue a charitable donation tax receipt for the 2013 taxation year.
TFSA Limit 2014
The TFSA limit for 2014 is $5,500. If you've never contributed, you may have $31,000 of contribution room on January 1st.
TFSA Withdrawals
If you're considering making a TFSA withdrawal, do it by December 31st so that your contribution room increases by that amount January 1, 2014.
Spouse or Common-Law Partner Tax Credit
This tax credit can be claimed if spouses are living apart, even in another country. It is increased by the family caregiver amount if the spouse has a mental or physical infirmity.
RRSP Contribution Deadline for 2013
March 3, 2014 is the deadline for RRSP contributions for the 2013 tax year, because March 1st falls on a Saturday.
Final RRSP Contribution at Age 71
Turned 71 in 2013 and have earned income in the year for RRSP contribution room? It can be utilized via an RRSP excess contribution in December.
Calculators and JavaScript
If you are getting a JavaScript error on one of our calculators, the calculator won't work properly. Please enable JavaScript.
OAS Clawback and Your Tax Return
Learn more about the clawback, what will happen in the next year, and how your taxes can be reduced even when your clawback is increased!
Eligible Dependent Tax Credit Tax Court Case
This is an interesting case which allowed a taxpayer to claim her mother as an eligible dependent for the years that her father also claimed a spousal credit, but the spousal credit did not reduce the father's taxes.
Quebec Refundable Eco-Friendly Renovation Tax Credit
More information is now available for this tax credit of up to $10,000, which is available only for the 2013/2014 tax years.
GST or HST Small Supplier
A small supplier ceases to be a small supplier immediately with the sale that causes the $30,000 annual limit (calculated at the end of each calendar quarter) to be exceeded, and must charge GST or HST on that sale. For this reason, it is important to track sales so that you can anticipate when the threshold will be exceeded.
Optimizing Donation Tax Credit
It is usually best for the highest income spouse to claim the tax credit for all donations of both spouses. However, sometimes not all donations are utilized, and can then either be carried forward or split between spouses. Our tax calculators will help with this.
TD1 Forms for Employees and Pensioners
The TD1 forms for 2014 are now available from Canada Revenue Agency. If there have been changes which will affect your tax exemptions (see our article), you should ensure that you complete these forms so that your employer (or other payer) will deduct the appropriate amount of income tax from your employment income or pension income. New employees should always complete these forms. For those working only part time, if your total income for the year will not exceed your exemptions, you should tick the appropriate box on the back of the form, so that your employer will not deduct any income tax from your pay cheques.
Last Stock Trading Date for 2013
The last trading date for 2013 for Canadian publicly traded stocks is December 24th, and for US publicly traded stocks is December 26th. The Canadian stock exchange closes early on the 24th, so don't leave things to the last minute!
Quebec Solidarity Tax Credit Increase
The refundable tax credit for residents of a northern village, which is part of the Solidarity Tax Credit, will increase from $810 per adult in 2013 to $1,620 per adult in 2014.
Quebec Tax Credits Indexed for 2014
The table of personal tax credits and deductions subject to automatic indexation has been updated for 2014.
November 2013
Gifts to Employees - Taxable?
With the Christmas season coming up, know the rules about gifts to employees and when they are taxable.
Meals and Entertainment
Sometimes, 100% of meals and entertainment expenses can be deducted by a business. A Christmas party to which all employees are invited would qualify.
Investment Income Tax Calculator 2014
The investment income tax calculator now includes 2014. It's a simple to use calculator that shows how Canadian dividends are much more tax efficient than interest or other income, even if the dividends increase the OAS clawback.
Basic Tax Calculator 2014
Compare taxes and marginal tax rates for both types of Canadian dividends, capital gains, and other income, for all provinces and territories, for 2009 to 2014.
2014 and 2013 Canadian Tax Calculator
The detailed 2013 and 2014 Canadian Tax Calculator is now available. It includes changes to the Ontario surtax and dividend tax credit calculations for 2014.
2014 and 2013 Quebec Tax Calculator
The detailed 2013 and 2014 Quebec Tax Calculator is now available. It includes Quebec non-eligible dividend tax credit rate change for 2014.
Ontario Trillium Benefit
When filing 2013 tax returns, the option will be available for a Trillium Benefit annual payment. If the annual amount is more than $360, there will be a one-year wait for the payment.
2014 Tax Rate Tables
All tax brackets and rates have now been confirmed, and a few $1 rounding differences revised.
Ontario Marginal Tax Rates re Dividends
Ontario's Nov 7/13 Economic Outlook announced revisions to legislation for dividend tax credits for both eligible and non-eligible dividends. As well, the ON surtax will be revised to be calculated before deduction of the dividend tax credits.
Donations of Property
We've updated our article to include the dates of application of legislation which received Royal Assent on June 26, 2013 regarding gifts to qualified donees.
RRSP 2015 Limits, MPP and DPSP 2014 Limits
The 2015 RRSP limit and 2014 MPP limit are $24,930, an increase of 2.7%. The DPSP 2014 limit is $12,465.
CPP Maximum 2014
The maximum pensionable earnings for 2014 is $52,500, up from $51,100 in 2013. Maximum employee contribution is $2,425.50, up from $2,356.20.
October 2013Use TFSA for Investing
Your TFSA can hold most of the same investments as your RRSP.
2014 Personal Tax Credits
The tables of non-refundable tax credits for 2014 are now available for all provinces except Quebec.
2014 Tax Rate Tables
The tables use our calculation of indexation factors, so may require some rounding adjustments once CRA publishes the factors.
Spousal RRSPs and RRIFs
Use spousal RRSPs to equalize future income; know the attribution rules re spousal RRSPs and RRIFs.
Creating Pension Income
Create pension income to make use of the pension tax credit, and to split income with a spouse.
Canadian Tax Calculator New Feature
The Canadian Tax Calculator now has a line where the user can select from a list of refundable tax credits, and input a refundable tax credit amount. The input is not checked by the calculator.
Employment Insurance 2014
The maximum insurable earnings for 2014 is $48,600, up from $47,400 in 2013. The rate is frozen at 2013 levels, so the employee maximum for 2014 is $913.68, up from $891.12.
Avoid Capital Gains by Donating Shares or Other Capital Property
Capital gains can be eliminated by donating capital property, such as securities, to charitable organizations which are qualified donees. This should be done by November or very early December to avoid the busy season and ensure the transactions are completed before year end.
Transfer Capital Losses to a Spouse
The superficial loss rules provide a method for capital losses to be transferred to a spouse. The spouse must hold the shares for more than 30 days for this to work, so to do this for 2013 you should act fairly soon.
Source documents re fixed asset purchases must be kept for 6 years after disposal of the asset. Many records must be kept until long after a business ceases. Know your records retention rules!
New refundable personal tax credit for green home renovations. New refundable tax credit for manufacturing SMEs investing in new software, and increase to another tax credit for manufacturing SMEs. September 2013
Income Splitting Loan to Spouse or Child
Loans created before Oct 1, 2013 will use the 1% prescribed rate, those created Oct 1 or later will use the 2% prescribed rate.
The OAS pension is clawed back if income exceeds a certain level. Capital gains can trigger this clawback, even if they are offset by losses carried forward.
Withholding tax rates for RRSP and RRIF withdrawals, including in kind withdrawals. Rates increase as the amount of the withdrawal increases.
Split your pension income with your spouse to save taxes. Use our Tax Calculators to see how much you can save.
When a sale of property results in a capital gain, it may be possible to spread the gain over a number of years. This requires advance tax planning!
Public Transit Amount Tax Credit
A taxpayer can claim the transit pass tax credit on behalf of a spouse or common-law partner, or the taxpayer's children under age 19.
Further legislative proposals announced, including increase in Lifetime Capital Gains Exemption.
TFSA - Foreign Dividends - Withholding Taxes
Withholding taxes will be deducted from US and other foreign dividends earned in a TFSA. These are not recoverable.
Minimizing Probate Fees / Joint Ownership
Although joint ownership can be very useful in minimizing probate fees, there are potential pitfalls.
August 2013Back To School - Tax Information For Students
These are articles which relate to students regarding income, deductions, tax credits and savings plans.
Alberta Dividend Tax Credit for Non-Eligible Dividends
We've added a table of marginal tax rates that will be in effect in 2014, if Alberta retains the tax credit at 7/40ths of the gross-up.
BC Dividend Tax Credit for Non-Eligible Dividends
We've added a table of marginal tax rates that will be in effect in 2014, if BC doesn't change the tax credit rate.
Quebec Dividend Tax Credit for Non-Eligible Dividends
We've added a table of marginal tax rates that will be in effect in 2014, based on the changes announced by Quebec in July.
Guaranteed Income Supplement (GIS)
We've added a link to the application forms, so you can see exactly which income from your tax return is included in calculating your eligibility for GIS.
Ontario Dividend Tax Credit for Non-Eligible Dividends
We've added a table of marginal tax rates that will be in effect in 2014, if Ontario does not change the tax credit rate.
Transfers of Investments to Registered Accounts
You can transfer investments to your registered accounts, but don't do so at loss, or the loss will be denied.
If you own both a home and a cottage, and sell one of them at a profit, you have to decide whether to designate the sold property as your principal residence for some or all of the years it was owned.
Our table of BC provincial debt data has been updated to include the 2012-13 fiscal year.
Gifting Tax Shelter Donation Arrangements - Assessments on Hold
The Federal Court found that the Minister (CRA) failed to comply with the duty to assess with all due dispatch.
Haven't started a TFSA yet? How much can be contributed? See our table showing annual limits and cumulative total. July 2013
Free Taxation Videos from Canada Revenue Agency
CRA offers many online videos as well as seminars and other events, to help you learn about many tax topics.
Reduce Tax Payments Now for 2013 RRSP Contributions
When RRSP contributions are made, income tax withholdings or instalments can usually be reduced.
Investment Return Calculator
Use our Investment Return Calculator to do a 6 month check on your investment returns, for a particular stock, one brokerage account, or all your investments.
US Estate Tax
US Stocks in RRSPs/RRIFs are subject to US estate tax, as are ETFs in or out of an RRSP. Due to the tax treaty, however, if a Canadian's worldwide estate doesn't exceed $1.2 million US, US investments are not subject to US estate tax.
Old Age Security (OAS) Clawback
If you have capital losses carried forward and unrealized capital gains, and are not going to be collecting your OAS pension for a year or so yet, you may be able to do something now to avoid or reduce an OAS clawback in the future.
Zero Taxable Income Items Can Still Increase Taxes
Capital gains, even when eliminated by capital losses carried forward, can trigger or increase a clawback of OAS benefits or EI benefits, and can reduce the age amount tax credit and medical expense tax credit, GST/HST credit, and child tax benefit. Non-taxable income such as workers' compensation benefits and social assistance benefits can have the same effect.
BC PST Number Online VerificationA vendor can now verify a purchaser's PST number via a free online service, but is not required to do so.
June 2013A Gift Can Result in a Taxing Situation
Although gifts aren't taxable in Canada, if you receive a gift from a tax debtor you could end up responsible for the tax debt.
Do you know your rights and responsibilities as an employee or employer? Learn about labour laws, including minimum wages rates, vacation and statutory holiday entitlement.
Foreign employers are responsible for collecting tax from their employees in Canada, and from non-resident self-employed contractors.
New Format Canadian Income Tax Calculator
Please try it out and let us know which one you prefer - old or new. The software used is still in beta, so let us know if you spot any issues.
Post-Retirement Benefit (PRB) Calculator
Canada Revenue Agency's PRB calculator will provide an estimate of your PRB payments.
Bill C-60, Economic Action Plan 2013 Act, No. 1, received Royal Assent June 10, 2013.
Don't Pay Unnecessary EI Premiums
Wages paid to some shareholders and family members are not insurable, and these employees cannot collect employment insurance benefits. Some other types of earnings are also not insurable.
How long will it take to double your investment? This simple calculator will tell you.
Registered Disability Savings Plans (RDSPs)
The purpose of an RDSP is to provide financial security to a disabled child when parents or grandparents are no longer able to provide support.
Registered Education Savings Plans (RESPs)
Before investing in an RESP, know the facts.
Tax Comparison Employment Income 2013
We compare total taxes by province at various income levels for a single person, and for a single earner family with 2 children.
Tax Comparison Investment Income 2013
Comparison of total taxes by province for eligible and non-eligible dividends and other investment income such as interest or foreign dividends.
Tax Comparison Seniors Investment Income 2013
Comparison of total taxes by province for a single senior with OAS, CPP and pension income, plus either eligible dividends or other investment income such as interest or foreign dividends.
The Quebec Tax Calculator now includes the First-Time Donor Super Credit.
May 2013Canadians with over $60,000 of US assets at death, including US stocks in a Canadian brokerage, are required to file a US estate tax return.
Simple calculator to estimate your US estate taxes.
We've updated our history of investment returns to include the 63-year period from December 31, 1949 to December 31, 2012.
Received a tax slip you forgot? Missed a deduction? It's not difficult to change your return, and can be done online.
CRA has both a payroll tax calculator and auto taxable benefits calculator. These can be used to check your payroll deductions. Quebec has its own p/r tax calculator.
Transfer Investments From RRSP/RRIF
In kind withdrawals can be made from your RRSP or RRIF, and the investment can be transferred to a TFSA if desired, subject to contribution room. Taxable income results from the withdrawal, and any withholding tax must be paid using cash from the RRSP or RRIF.
The rules on unlocking all or a portion of your locked-in pension plan depend on whether your plan is federally or provincially regulated.
Most, but not all, CCA classes are subject to the half-year rule. Only a few Class 12 assets are subject to the half-year rule.
Investment Income Tax Calculator - Quebec
See the big difference in income taxes payable with different types of investment income.
The Canadian Tax Calculator includes 2013 budget revisions.
Prescribed Factors for RRIF Minimum Withdrawals
Our new table shows the prescribed factors for RRIF minimum withdrawals from age 50 to 95, as well as the % increase in the factor each year.
Investment Income Tax Calculator
See the big difference in income taxes payable with different types of investment income.
PE Dividend Tax Credit Non-Eligible Dividends
The tax rate table for PE has been revised to reflect the increase in the dividend tax credit rate for non-eligible dividends, as per the 2013 Budget.
Ontario 2013 Budget - May 2, 2013
Changes are proposed to the Employer Health Tax (EHT), Ontario Trillium Benefit (choice of annual or monthly payments), and non-eligible dividend tax credit.
April 2013Barter and BitCoin Transactions
If a transaction would have tax implications if money changed hands, it will have the same tax implications if it is a barter or BitCoin transaction. Also, trading in BitCoins is taxable.
Superficial Losses and Other Disallowed Losses
If you sold shares at a loss and repurchased them within 30 days, or if you transferred loss shares to your RRSP, the loss cannot be claimed.
The BC provincial debt table has been expanded to add more information.
Federal Budget Notice of Ways and Means Motion
The Ways and Means Motion and Explanatory Notes for the Federal Budget are now available.
Using your RRSP to buy a home, recording RRSP withdrawals re HBP, and repayments to HBP, on your tax return.
Learn about tax credits, tax deductions, scholarships, transfer and carry-forward of tuition and education credits, courses outside Canada, etc.
Pay Your Taxes Online / Other Options
Taxes can be paid by online or telephone banking, by mail or at your bank, or by CRA's My Payment.
Can't Afford Tax Software? NetFile Your Tax Return for Free
Don't use paper forms when you can NetFile for free - some software packages are free for everyone.
The Ontario 2013 budget will be presented Thursday, May 2nd.
Property Rental Deductible Expenses
If you rent out one or more rooms in your home, or if you own a rental property, there are many expenses that can be deducted in calculating your net rental income.
Even if you have no income, it may be to your advantage to file a tax return to qualify for certain benefits or tax credits, and to create RRSP or TFSA contribution room.
Dividends from US and other foreign shares are fully taxable to Canadians, even when a portion may be considered return of capital or capital gains distributions to US taxpayers.
Manitoba 2013 Budget - April 16, 2013
The MB budget increases the general sales tax rate, revises non-eligible dividend tax credit rate, increases small business limit, and introduces a fuel tax for natural gas used in motor vehicles.
If you don't yet have a plan for your financial freedom, start here. You can monitor your progress by using our Net Worth Calculator.
Are you an employee or a self-employed contractor? There are advantages and disadvantages to both, but it is important to know the correct status for tax purposes.
Common-Law Partner / Common-Law Spouse
Have you been living with a common law spouse for 12 months or longer? Their net income must be reported on your tax return.
Nova Scotia Budget - April 4, 2013
Small business corporate tax rate to be reduced January 1, 2014, new $1,000 age amount tax credit starting 2014.
March 2013New Brunswick 2013 Budget - March 28, 2013
The NB 2013 budget increases both personal and corporate income tax rates effective July 1, 2013.
Prince Edward Island Budget - March 27, 2013
The PEI small business tax rate increases from 1% to 4% effective April 1, 2013, in conjunction with HST implementation.
Newfoundland & Labrador 2013 Budget - March 26, 2013
No personal or corporate income tax changes were announced in the NL 2013 budget.
The SK government presented its 6th consecutive balanced budget on March 20th. There were no income tax changes.
Donation Tax Credit Rates 2013
Our table of 2013 donation tax credit rates has been revised to show the amount of employment income required to fully utilize the tax credit or First-Time Donor Super Credit for $1,000 of donations.
The deduction for safety deposit boxes is to be eliminated for the 2014 tax year.
First-time Donor's Super Tax Credit (FDSC)
The Federal Budget introduces the First-time Donor's Super Tax Credit for charitable donations.
Lifetime Capital Gains Exemption (LCGE)
Budget 2013 increases the lifetime capital gains exemption from $750,000 to $800,000 for 2014, with indexing in subsequent years.
Non-Eligible Dividend Tax Credit
The 2013 Budget reduces the dividend tax credit for non-eligible dividends, starting in the 2014 tax year.
2013 Federal Budget / Economic Action Plan
The budget proposes to reduce the non-eligible dividend tax credit, provide a first-time charitable donor super credit, and extend the manufacturing and processing accelerated CCA, among other tax measures.
This tax credit, new for 2012, may be available if you have a dependant with a physical or mental impairment.
Do you have a worthless investment? Can't sell it because it has been delisted? There may be a way to claim the capital loss.
Optimizing the Donation Tax Credit
It is usually best for the highest income spouse to claim the tax credit for all donations of both spouses. However, sometimes not all donations are utilized, and can then either be carried forward or split between spouses. Our tax calculators will help with this.
Interest Expense re Investments
Interest expense incurred to earn investment income can be deducted as carrying charges on your tax return. This could include mortgage, loan, or line of credit interest, margin interest, or interest on your CSB payroll savings plan.
Tracking Cost of Mutual Funds and ETFs
It's important to track the adjusted cost base (ACB) for each Canadian mutual fund and exchange traded fund (ETF) you own, so you don't pay too much tax when you sell. See our Mutual Fund and ETF articles to learn more.
This article has been updated to include references to new legislation, and to new bulletins where available.
PEI will transition to the HST system on April 1, 2013. Our PEI page has links to provincial and CRA information regarding the HST.
BC PST - Services Exempt From PST
Many services will again be exempt from PST in BC, including diagnostic services, many services to vehicles, moving services, courier and freight services, etc.
Alberta 2013 Budget (on Alberta website)
The 2013 Budget has no new taxes or tax increases.
Provincial Political Contribution Tax Credit Rates and Maximums
Small political contributions are encouraged by the high tax credit rate on the first part of the contribution.
February 2013
This credit, also known as the equivalent to spouse credit, may be claimed for a dependent child or other eligible dependent, under certain circumstances.
Attendant care costs can sometimes be claimed for a person who is not eligible for the disability amount.
The age amount tax credit is available to taxpayers 65 and older. The federal credit is reduced for income over $33,884 in 2012. The provincial credit is also reduced, at a similar level in most provinces.
Is a Separate Business Tax Return Required For My Business?
This will depend on whether your business is incorporated. A corporation requires a separate T2 corporate income tax return. Unless you are trained in preparing corporate tax returns and are up to date on current tax laws, a T2 corporate tax return should be prepared or reviewed by a professional accountant.
RRSPs can be used to help purchase a home. Make sure repayments are reported on Schedule 7 of your tax return, otherwise you'll lose RRSP contribution room.
Many types of income are not taxable, such as GIS, Canada Child Tax Benefit, GST/HST credit, most gifts and inheritances, and more.
Make sure you know the rules around claiming child care costs. There is now a separate line for these costs in the Canadian Tax Calculator.
The 2013 budget announced a new personal income tax bracket, increased general corporate income tax rate, and one-time grants towards RESP plans for children over 6.
The BC 2013 budget announced that the 2014 MSP rates would increase by 4.1%, but those who are receiving assistance will not be affected.
Windows 8 and Internet Explorer 10
If you are using Windows 8 and IE 10, you may have to use compatibility view to view some of our calculators properly.
Quebec Working Income Tax Benefit (WITB) 2013
The 2013 WITB amounts table has now been published.
RRSP/RRIF Withdrawal Calculator
Are you nearing retirement? Plan ahead with our RRSP/RRIF withdrawal calculator. Also works for established RRIFs started 1993 or later.
Quebec Tax Calculator - Pension Splitting
The Quebec Tax Calculator now allows different federal and Quebec amounts for pension splitting.
Negative Marginal Tax Rate Eligible Dividends
Taxpayers in the lowest tax bracket in some provinces can reduce their taxes payable by receiving eligible dividends.
January 2013Students - Transfer or Carry-forward of Tuition and Education amounts
If you do not have enough income to utilize your total tuition costs, education amount or textbooks amount, you can either carry forward these amounts to future years (no limit to carry-forward period), or you can transfer the costs to your spouse, common law partner, or to a parent or grandparent of you or your spouse or common law partner.
If you have a parent or grandparent over 65 living with you, you could be eligible for the caregiver amount tax credit.
Guaranteed Income Supplement (GIS)
Currently, the GIS must be applied for. However, proactive enrolment will be gradually implemented from 2013 to 2016, so that applying will no longer be necessary. GIS is automatically adjusted each year based on the tax return. However, if there is a reduction in income, contact Service Canada, as they may calculate the GIS by estimating the current year's income.
A loan by a corporation to a shareholder may result in a deemed taxable benefit. Care must be taken in the timing of salary or dividend payments to clear shareholder loans. If the amount of the loan is significant, it could make a CCPC ineligible for the $750,000 lifetime capital gains exemption for the shareholder, on disposal of the shares.
From Seniors Canada - learn the signs of financial abuse of seniors, and how to get help.
All About RRSPs, TFSAs, and RRIFs
Contribution limits, qualified investments, RRSP/RRIF withdrawal calculator, RRSPs and borrowing, getting your money out of RRSPs, withholding tax and more.
Completing T4 When CPT30 Has Been Filed
When a CPP recipient age 65 to 70 has elected to stop contributing to the CPP by completing and submitting form CPT30, box 28 on the T4 (CPP/QPP exempt) must be left blank.
Transfer Dividends to a Spouse
In some cases, a taxpayer can include all of the spouse's Canadian dividend income in his/her income.
Investment Returns to December 31, 2012
Our table of investment returns on stocks, bonds and T-bills has been updated to include 2012. Again updated on January 25th, to include December 2012 CPI. The inflation rate for 2012 was 0.8%.
Tax Return - Reporting Foreign Income and Expenses
Foreign income, expenses and taxes paid must be reported in Canadian dollars on your tax return.
The TFSA vs RRSP Calculator now includes the $5,500 increased limit for 2013, as well as 2013 tax rates.
2013 Donation Tax Credit Rates
The table of 2013 donation tax credit rates is now available.
See also Prior Years:
Revised: January 11, 2024