2019 Year-End Checklist

A checklist to help everyone, retired or saving for retirement, get the most out of tax credits, deductions, and benefits and keep important dates in mind.

TFSA Limit 2020
The advantage of a TFSA is that you will pay no taxes on the interest, dividends or capital gains when you withdraw from the plan. The contribution amount for 2019 is $6,000 for a lifetime total of $63,500. Contribution deadline is December 31. The contribution amount for 2020 will be $6,000 for a lifetime total contribution of $69,500. READ MORE

Registered Retirement Saving Plan (RRSP)
The RRSP contribution limit for 2019 is 18% of your earned income, up to a maximum of $26,500. If you have a company pension plan, your RRSP contribution limit is reduced. You can contribute to your RRSP until March 1, 2020 for taxation year 2019.

Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit
You may be eligible for the GST/HST credit, a tax-free quarterly payment that helps offset all or part of the GST or HST that you pay. To receive this credit, you must file an income tax and benefit return every year. READ MORE

Home Buyers’ Amount
You can claim $5,000 for the purchase of a qualifying home in 2019 if both of the following apply:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first- time home buyer). READ MORE

Medical Expenses
You may be able to claim eligible medical expenses that you paid, provided the expenses were made over the 12-month period ending in 2019 and were not previously claimed. This can include amounts claimed for attendant care or care in an establishment. READ MORE

Registered Disability Savings Plan (RDSP)
This savings plan can help families save for the financial security of a person who is eligible for the disability tax credit. RDSP contributions are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. READ MORE

Disability Amount
If you, your spouse or a dependent have severe and prolonged impairments in physical or mental functions and meet certain conditions, you may be eligible for the disability tax credit (DTC). READ MORE

Canada Caregiver Amount
Those caring for a dependent with impairment in physical or mental functions may be able to claim up to $2,182 when calculating certain non-refundable tax credits. READ MORE

IF YOU HAVE CHILDREN

Child Disability Benefit

The child disability benefit is a tax-free monthly payment made to families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions. Your child disability benefit payments are calculated from July of one year to June of the next year using the following information:

• Number of eligible children
• Adjusted family net income
• Marital status

For the period of July 2019 to June 2020, you could get up to $2,832 ($236 per month) for each child who is eligible for the disability tax credit.

The benefit starts being reduced when the adjusted family net income is more than $67,426. The reduction is calculated as follows:

• For families with one child eligible for the benefit, the reduction is 3.2% of the amount of adjusted family net income over $67,426.
• For families with two or more children eligible for the benefit, the reduction is 5.7% of the amount of adjusted family net income. READ MORE

Canada Child Benefit
We calculate the CCB as follows:
$6,639 per year ($553.25 per month) for each eligible child under the age of six
$5,602 per year ($466.83 per month) for each eligible child aged 6 to 17

These amounts start being reduced when the adjusted family net income (AFNI) is over $31,120.

• For families with one eligible child, the reduction is 7% of the amount of AFNI
• Between $30,450 and $65,975, plus 3.2% of the amount of AFNI over $65,975
• For families with two eligible children, the reduction is 13.5% of the amount of
• AFNI between $31,120 and $67,426, plus 5.7% of the amount of AFNI over
• $67,426
• For families with three eligible children, the reduction is 19% of the amount of AFNI between $31,120 and $67,426, plus 8% of the amount of AFNI over $67,426.
• For families with four or more eligible children, the reduction is 23% of the amount of AFNI between $31,120 and $67,426, plus 9.5% of the amount of AFNI over $67,426. READ MORE

Child Care Expense Deduction Limits
The purpose of the legislative provisions regarding child care expenses is to pro vide some relief for taxpayers who incur child care expenses in order to work, carry on a business or undertake certain educational activities.

The maximum child care expenses that can be claimed per child each year is limited to $5,000, $8,000 or $11,000 depending on the circumstances. For a child in respect of whom a disability tax credit may not be claimed, the annual child care expense amount varies. See “Income Tax Folio S1-F4-C1, Basic Personal and Dependant Tax Credits”. For more information READ MORE

IF YOU ARE RETIRED

Registered Retirement Savings Plan (RRSP)
You have until December 31 of the year in which you turn 71 to contribute to your RRSPs. If you turned 71 in 2019, convert RRSP into an Annuity or RRIF. READ MORE

Pension income splitting
Those who receive a pension may be eligible to split up to 50% of eligible pension income with a spouse. READ MORE

Guaranteed income supplement
If you received the guaranteed income supplement or allowance benefits under the Old Age Security program, you can renew the benefit by filing by the deadline. READ MORE

Age amount
If you are 65 years of age or older on December 31, 2019, and if your net income was $36,976 or less, claim $7,333. More than $36,976, but less than $85,863 claim a reduced amount. READ MORE

Pension income amount
You can claim up to $2,000 if you report eligible pension, such as RRIF or annuity payments on your tax return. READ MORE

MAXIMIZE YOUR INVESTMENTS

What is Tax-Loss Selling?
Tax-loss selling means selling an investment with accrued losses at year-end, allowing you to offset capital gains realized with other investments. Net capital losses can be carried back three years or carried forward indefinitely. Tax-loss selling there fore enables investors to mitigate the impact of capital gains taxes.

Superficial Loss Rules
When you sell an investment at a loss, if you, your spouse, your company, or a trust in which you have a major interest, purchase and still own an identical investment within 30 days of the sale, then the capital loss is added to the cost base of the purchase. This includes re-purchasing the same company or a fund tracking the same index. Professional advice may be needed to determine whether certain products are considered identical.

Foreign Currency Tax Loss Selling
Foreign currency fluctuations are another important consideration when tax-loss selling. The gain or loss will be different once the foreign exchange is taken into account. It is even possible that when calculating between two currencies, what appeared to be a loss may end up being a capital gain, and vice versa. Before selling to take losses, it is extremely important to calculate foreign currency ex change rates.

Do you have any questions?
Speak with an expert before the year ends and receive advice tailored to your situation