Here's what you need to know about changes to our taxes
As of January 1, 2020, several changes to our taxes have come into effect.
As of now, the Basic Personal Income—which is deducted from a person’s salary before the amount of income tax they owe is determined—has been increased to $13,229 for 2020. This is part of the government’s intention of raising it to $15,000 by 2023.
These changes also include the Home Buyer’s Plan.
Now, people looking to purchase or built a house can withdraw $35,000 from an RRSP to pay for a downpayment without having to pay tax on it.
Additionally, people who experience a breakdown of a marriage or common-law partnership--in the year of making a withdrawal or in any of the four preceding calendar years--will be able to access the Home Buyers’ Plan, even if they do not meet the first-time homebuyer requirement.
Changes intended to provide Canadians with greater flexibility when it comes to their retirement savings.
Now, purchases of advanced life deferred annuities will be permitted from a registered retirement savings plan, registered retirement income fund, deferred profit-sharing plan, pooled registered pension plan (PRPP) and defined contribution registered pension plan (RPP).
Additionally, variable payment life annuities will be permitted under a PRPP and defined contribution RPP.
Finally, the information return deadline for a taxpayer’s foreign affiliates has been accelerated from 15 months after year-end to 12 months after year-end for taxation years of a taxpayer that begin in 2020, and to 10 months after year-end for taxation years of a taxpayer that begin after 2020.
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