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Tax Changes for tax return 2014 in Canada

Tax rules change every year and 2014 tax year is no exception. We have consolidated all the tax changes by province for your easy consumption. Review the federal change and the province specific changes applicable to you. If you have any questions, you can Contact Us with subject 'new tax changes'.

Federal Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nova Scotia Ontario Saskatchewan Prince Edward Island

2013 Canada Income Tax Changes

Federal tax changes in 2014

GST/HST credit

You no longer have to apply for the GST/HST credit. When you file your return, Revenue Canada (CRA) will determine your eligibility and tell you if you are entitled to receive the credit.

Children's fitness amount (S1 - line 365)

The maximum amount of eligible fees for each child has increased to $1,000.

Family Tax Cut (S1 - line 423)

You may be able to claim a non-refundable tax credit of up to $2,000 to reduce your federal income tax. The credit is calculated based on the net reduction to your and your spouse or common-law partner's combined federal taxes of up to $50,000 in taxable income was transferred from the individual with the higher taxable income to his or her spouse or common-law partner. You can claim this credit if you were married or living in a common-law partnership with children under the age of 18, and :

  • you were not living separate or apart because of a breakdown in your relationship for a period of 90 days or more including December 31, 2014;
  • you were both residents of Canada on December 31, 2014;
  • you both file a return for the tax year; and
  • neither you nor your spouse or common-law partner has elected to split eligible pension income.

Adoption expenses (S1 - line 313)

The maximum amount of eligible adoption expenses for each child has increased to $15,000.

Search and rescue volunteers' amount (S1 - line 395)

As a search and rescue volunteer, you may be able to claim an amount of $3,000. If you qualify for both volunteer firefighters’ amount or the search and rescue volunteers’ amount, you must select which one would you like to claim.

Amateur athlete trust (T1 - line 208)

Income contributed to an Amateur athlete trust now qualifies as earned income in calculating the registered retirement savings plan (RRSP) contribution limit of the trust’s beneficiary.

Investment tax credit (S1 - line 412)

Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 2015.

Overseas employment tax credit (S1 - line 426)

Overseas employment tax credit will be phased out from 2014 to 2016. The percentage of qualifying foreign employment income (QFEI) and the maximum QFEI used in the calculation of the OETC has been reduced to 40% of QFEI to a maximum QFEI of $40,000 for 2014.

Alberta tax changes in 2014

Change in provincial non-refundable tax credit

Royalty tax rebate has expired. Provincial non-refundable tax credits have been increased resulting in more income tax savings and a bigger tax refund for you. Here is the summary of changes:

  • Basic personal amount increased to 17,787 ;
  • Maximum age amount increased to 4,957 ;
  • Spouse amount increased to 17,787 ;
  • Amount for an eligible dependent increased to 17,787 ;
  • Maximum caregiver amount for dependent increased to 10,296 ;
  • Maximum amount for infirm dependent increased to 10,296 ;
  • Maximum disability amount increased to 13,720 ;
  • Maximum adoption amount for eligible child increased to 12,165 ;

British Columbia tax changes in 2014

New tax rate for income over $150,000

A sixth personal income tax rate of 16.8% has been added for taxable income over $150,000.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount actually decreased to 9,869 ;
  • Maximum age amount increased to 4,426 ;
  • Maximum spouse amount is now 8,450 ;
  • Maximum amount for an eligible dependent is now 8,450 ;
  • Maximum caregiver amount for dependent increased to 4,318 ;
  • Maximum amount for infirm dependent increased to 4,318 ;
  • Maximum disability amount increased to 7,402 ;
  • Maximum adoption amount for eligible child increased to 11,669 ;

Manitoba tax changes in 2014

New tax credit and changes

  • A new Manitoba employee share purchase tax credit has been introduced. You can claim this non-refundable tax credit for shares you acquired from a registered employee share ownership plan (ESOP) at any time in 2014. Your Manitoba employee share purchase tax credit is shown on your ESOP receipt(s).
  • The small business venture capital tax credit has been enhanced with respect to eligible shares issued from June 12 to December 31, 2014: a) the tax credit rate is 45%, raising the maximum annual tax credit that can be claimed by an investor to $67,500; and b) the maximum tax credit earned by an investor per company is $202,500.
  • Community enterprise development tax credit: You can claim non-refundable tax credit for investments you made in eligible community enterprise development projects from January 1 to June 11, 2014. For investments you made from June 12 to December 31, 2014, you can claim this refundable tax credit which has been enhanced as follows: a) the tax credit rate is 45%, raising the maximum credit an individual investor can earn in a year to $27,000; b) the maximum annual investment is $60,000; and c) the tax credit is fully refundable.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 9,134 ;
  • Maximum spouse amount increased to 9,134 ;
  • Maximum amount for an eligible dependent increased to 9,134 ;

New Brunswick tax changes in 2014

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to 9,472 ;
  • Maximum age amount increased to 4,625 ;
  • Maximum spouse amount increased to 8,043;
  • Maximum amount for an eligible dependent increased to 8,043 ;
  • Maximum caregiver amount for dependent increased to 4,473 ;
  • Maximum amount for infirm dependent increased to 4,473 ;
  • Maximum disability amount increased to 7,668 ;

Change in provincial tax rate

Provincial tax rate has been increased for each income bracket:

  • Tax rate increased from 9.39% to 9.68% for income upto $39,305 ;
  • Tax rate increased from 13.46% to 14.82% for income between $78,609 and $39,305 ;
  • Tax rate increased from 14.46% to 16.52% for income between $127,802 and $78,609 ;
  • Tax rate increased from 16.07% to 17.84% for income greater than $127,802 ;

Newfoundland and Labrador tax changes in 2014

New tax credit

Venture capital tax credit: You can claim a credit for investments you made in a qualifying venture capital fund in 2014 or in the first 60 days of 2015.

Change in dividend tax credit

As of July 1, 2014, the rate used to calculate the dividend tax credit for non-eligible dividends has decreased to 4.1% and for eligible dividends to 5.4%. Remember to input the information correctly for dividends received before July 1 and after July 1.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and bigger tax refund you. Here is the summary of changes:

  • Basic personal amount increased to $8,578 ;
  • Maximum age amount increased to $5,476 ;
  • Maximum spouse amount increased to $7,009 ;
  • Maximum amount for an eligible dependent increased to $7,009 ;
  • Maximum caregiver amount for dependent increased to $2,724 ;
  • Maximum amount for infirm dependent increased to $2,724 ;
  • Maximum disability amount increased to $5,788 ;
  • Maximum adoption amount for eligible child increased to $11,576 ;

Nova Scotia tax changes in 2014

New tax credit

Age tax credit: You can claim this non-refundable tax credit if you met all of the following conditions:

  • you were a resident of Nova Scotia on December 31, 2014;
  • you were 65 years of age or older on or before December 31, 2014; and
  • your taxable income from line 260 was less than $24,000.

Elimination of graduate retention rebate

Graduate retention rebate has been eliminated.

Ontario tax changes in 2014

New tax credit

Community food program donation tax credit for farmers: you can claim the community food program donation tax credit for farmers if:

  • you were a resident of Ontario on December 31, 2014;
  • you or your spouse or common-law partner was a farmer;
  • you made a qualifying donation to an eligible community food program in the year; and
  • you have claimed the qualifying donation on line 340 of your federal schedule 9 and on line 29 of your Form ON428 as a charitable donation or gift for the year.

New tax rate for income over $150,000

A new personal income tax rate of 12.16% has been added for taxable income between $150,000 and $220,000. Tax rate of 13.16% is applicable for taxable income over $220,000.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings for you. Here is the summary of changes:

  • Basic personal amount increased to $9,670 ;
  • Maximum age amount increased to $4,721 ;
  • Maximum spouse amount increased to $8,211 ;
  • Maximum amount for an eligible dependent increased to $8,211 ;
  • Maximum caregiver amount for dependent increased to $4,557 ;
  • Maximum amount for infirm dependent increased to $4,558 ;
  • Maximum disability amount increased to $7,812 ;
  • Maximum adoption amount for eligible child increased to $11,797 ;

Saskatchewan tax changes in 2014

Change in Royalty tax rebate

The Royalty tax rebate has now expired and has been removed.

Change in provincial non-refundable tax credit

Provincial non-refundable tax credits have been increased resulting in more tax savings and a bigger tax refund for you. Here is the summary of changes:

  • Basic personal amount increased to $15,378 ;
  • Maximum age amount increased to $4,684 ;
  • Maximum spouse amount increased to $15,378 ;
  • Maximum amount for an eligible dependent increased to $15,378 ;
  • Maximum caregiver amount for dependent increased to $9,060 ;
  • Maximum amount for infirm dependent increased to $9,060 ;
  • Maximum disability amount increased to $9,060 ;

Prince Edward Island tax changes in 2014

Change in dividend tax credit rate

Rate used to calculate dividend tax credit for other than eligible dividends have been increased from 2.9% to 3.2% resulting in bigger tax refund for you.