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New tax rules for 2016!
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New tax rules for 2016!

From your friends and tax advisors at

M.I.A.G.E. Business Solutions Inc.


For this New Year I wish that you have a wonderful January, a lovely February, a Peaceful March, a stress-free April, a fun-filled May, and Joy that lasts from June to November, and finally a happy December. May my wishes come true and may you have an eventful and prosperous New Year.
 
What’s new for the 2016 tax-filing season?

Canada Revenue Agency:
 
  • Online mail – Online mail is the fast, easy and secure way to manage your tax correspondence. Get statements such as your notice of assessment online in My Account, instead of in the mail. To register, provide us with an email address on your income tax and benefit return, or register directly online at www.cra.gc.ca/myaccount. New correspondence, such as benefits statements (summer 2016), will be added this year!
  • Universal child care benefit (UCCB) – For the 2015 tax year, under the UCCB, families will receive $160 per month for each child under 6 and $60 per month for each child aged 6 through 17.
  • Disability Tax Credit – This year, Canadians claiming the Disability Tax Credit (DTC) will be able to file their T1 return online regardless of whether or not their Form T2201, Disability Tax Credit Certificate has been submitted to the CRA for that tax year.
  • Children's Fitness amount – As of January 1, 2015, this is now a refundable tax credit available to families with children enrolled in a prescribed program of physical activity. For tax years prior to 2015, this credit was non-refundable.
  • Child Care Expense Deduction limits – As of the 2015 tax year, the Child Care Expense Deduction dollar limits have increased by $1,000. The maximum amounts that can be claimed have increased to $8,000 for children under age seven, to $5,000 for children aged seven through 16, and to $11,000 for children who are eligible for the Disability Tax Credit.

Revenue Quebec:
 

Tax cut for middle-class income earners

Starting January 2016, the income tax rate for those earning between $45,000 and $90,000 annually drops to 20.5 per cent, from 22 per cent.
If you’re earning the maximum, that means a savings of about $650 a year.
The news isn’t as good for Canada’s highest earners.
The tax rate on all income above $200,000 will increase four percentage points, to 33 per cent.
And if you have a Tax Free Savings Account, your annual contribution limit has been reduced nearly in half, to $5,500.

New tax changes for 2016 and how to plan ahead!

Payroll source deductions changed as of January 2016: 
 
QPP increased to 5.325% (for employee & employer each) from 5.25% (in 2015)
QPIP reduced from 2015 i.e. 0.548% (employee) and to 0.767% (employer) BUT the maximum insurable earnings increased to $71,500 (from 70,000 in 2015) and the annual maximum employee contribution increased to $391.82 via employer maximum contribution of $548.41.
EI decreased to 1.52% (employee) and to 2.128% (employer) from 1.54% and 2.156% respectively (in 2015)
Copyright © *2016* *MIAGE Business Solutions Inc.*, All rights reserved.

Our mailing address is:
750-6600 Transcanada, Pointe-Claire, QC, H9R 4S2
Tel: 514.426.7200
Email: info@miagesolutions.com

Contact:
Mahtab Saghafi, Senior finance and tax advisor

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