The 2014 Personal Income Tax Organizer is designed to assist you in gathering the reporting information and documents necessary for the preparation of your 2014 tax return.
Please complete the attached checklist and send all the necessary information and documentation to us AS SOON AS POSSIBLE as we need time to prepare, process, check and deliver your tax return by the filing deadline of April 30, 2015. Please ensure that all documentation provided is complete. This will allow for quicker processing and efficiency.
Note that if you or your spouse carried on a business in the year, you have until June 15, 2015 to file your personal income tax return. However, you and your spouse's tax liabilities are due on April 30, 2015.
New personal tax measures for 2014 that can affect your tax return:
RRSP Limits
The maximum RRSP contribution for 2014 has increased to $24,270. Your RRSP deduction for 2014 is generally calculated as 18 per cent of your 2013 earned income, less 2013 pension adjustments to a maximum of $24,270 plus unused RRSP deduction room from carried forward prior years.
Family Tax Cut
For the 2014 and subsequent tax years, you or your spouse or common-law partner may be able to claim a non-refundable tax credit of up to $2,000 if you have children under the age of 18 who ordinarily lived with you or your spouse or common-law partner throughout the year.
Children's Fitness Tax Credit
For the 2014 and subsequent tax years, the maximum amount of fees eligible for the Fitness Tax Credit for each child has increased to $1,000 (from $500). The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which an eligible fitness expense was paid. You can claim this amount if another person has not already claimed the same fees and the total amount claimed is not more than the maximum allowable amount if only one of you were making the claim.
Lifetime Capital Gains Exemption
For dispositions of qualified small business corporation shares and qualified farm and fishing property made after 2013, the lifetime capital gains exemption limit has increased to $800,000.
Adoption Expenses
You can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. For the 2014 taxation year, the maximum amount of eligible expenses for each child has increased to $15,000. For subsequent taxation years, the maximum amount will be indexed for inflation.
Parents can claim these adoption expenses in the tax year that includes the end of the adoption period for the child. The adoption period:
- begins either when an application is made for registration with a provincial or territorial ministry responsible for adoption (or with an adoption agency licensed by a provincial or territorial government) or when an application related to the adoption is made to a Canadian court, whichever is earlier; and
- ends when an adoption order is issued by, or recognized by, a government in Canada for that child or when the child first begins to live permanently with you, whichever is later.
Medical Expenses Tax Credit
Effective January 1, 2014, amounts paid for the design of certain individualized therapy plans may be eligible for the Medical Expense Tax Credit (METC) if the cost of the therapy itself would be eligible for the METC provided certain conditions are met. The plan must be designed for individuals who qualify for the disability tax credit. Additionally, costs for specially trained service animals that assist individuals with severe diabetes are now eligible for the METC.
Search and Rescue Volunteer Tax Credit (SRVTC)
If you perform at least 200 hours in a year of eligible volunteer services, you may be eligible for a new nonrefundable tax credit, based on an amount of $3,000. The SRVTC will be calculated by multiplying the lowest personal income tax rate for the year by $3,000. For 2014, the credit will be $450 (15% x $3,000).
Mineral Exploration Tax Credit
Eligibility for the Mineral Exploration Tax Credit will be extended for one year, to flow-through share agreements entered into on or before March 31, 2015.
GST/HST Credit You no longer have to apply for the goods and services tax/harmonized sales tax (GST/HST) credit. When you file your return, the Canada Revenue Agency (CRA) will determine your eligibility and will advise those who are eligible to receive the credit. If you have a spouse or common-law partner, only one of you can receive the credit. The credit will be paid to the person whose return is assessed first. The amount will be the same, regardless of who (in the couple) receives it.
Ecological Gifts
The carry-forward period, for gifts of ecologically sensitive land made after February 10, 2014, has been extended to 10 years.
Cultural Gifts
For donations of certified cultural property made after February 10, 2014, special rules will apply when the property was acquired through a gifting arrangement that is a tax shelter.
Amateur Athlete Trust (AAT)
Income contributed to an AAT now qualifies as earned income in calculating the registered retirement savings plan (RRSP) contribution limit of the trust's beneficiary. You can make an election to have income that was contributed to an AAT in 2011, 2012, and 2013 also qualify as earned income. Your RRSP limit will be recalculated for each of these years and any additional RRSP room will be added to your RRSP contribution room for 2014. You must make the election in writing before March 3, 2015 (include a statement from the trustee identifying the contributions made to the AAT), and send your election to Pension Workflow Section, Ottawa Technology Centre, 875 Heron Road, Ottawa ON K1A 1A2.
Online Mail
You can register for online mail by providing the CRA with an email address on your T1 return or you can register online starting February 2015 at www.cra.gc.ca/myaccount. Once registered, you will have instant access to your tax records anytime, anywhere. You can choose to receive an email notification that your notice of assessment or reassessment is available online.
Mobile Application
CRA has launched a mobile app for individual taxpayers. Visit www.cra.gc.ca/mobileapps to download.
Important for EFile
It is now mandatory for all tax returns prepared by Crowe Soberman to be e-filed (certain exceptions are provided by CRA).
Filing your tax return electronically is fast, safe, easy and environmentally friendly.
The benefits of using EFile Online are:
- Individuals who have their returns e-filed can generally expect to have their returns and refunds processed within two weeks. You can get your refund even faster if you use direct deposit.
- Crowe Soberman receives an electronic acknowledgement that the return has been received.
- If you have to pay, you can e-file your return early and not pay the amount owing until April 30th. Your payment can be made by telephone, Internet banking, ATM or by using the remittance form. In many cases, taxpayers receive their notice of assessment before the payment is due.
Many of our clients feel they do not need a complete copy of their tax return, which often consists of 20 to 30 pages. Most are satisfied with a Jacket Outline, which is a twopage summary of the tax return showing all line items. If you require more information after receiving the Jacket Outline, simply give us the line number, and we can provide the relevant schedules or the complete return by mail or email.
Clients will be provided with a Jacket Outline unless otherwise specified in this 2014 Personal Income Tax Organizer.
Crowe Soberman will store your returns electronically in a secure environment that can be easily accessed when, or if, required.
Please click here to view our 2014 Personal Income Tax Organizer in full
If you have any questions regarding the organizer, or wish to discuss any aspect of your personal tax situation, please contact us at your earliest convenience.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
