New personal tax credits in 2013
What new tax credits can I claim in 2013?
As we are well past the holidays and into the new year, another tax season quickly approaches. With that said, it is increasingly mportant to take note of some of the new personal tax credits that may be available to us on our upcoming 2013 personal income tax returns. The following is a quick summary of some of the newly introduced personal tax credits that you may qualify for this year:
- First-time donor’s super credit – This new personal tax credit for first-time donors gives an extra 25% credit for cash donations when you claim your charitable donations on your personal income tax return. This means you can get a 40% federal tax credit for up to $200 in donations and a 54% tax credit for the part of donations that is over $200 but not more than $1,000. This is in addition to the provincial portion of the tax credit.
- Family caregiver amount – If you have a dependant with an impairment in physical or mental functions, the additional amount you may be eligible to claim has increased to $2,040 when calculating certain non-refundable tax credits.
- Pooled registered pension plan (PRPP) – The PRPP is a new retirement savings option for individuals, including those who are self-employed. For more information, go to www.cra.gc.ca/prpp.
- Adoption expenses – The period to claim adoption expenses has been extended for adoptions finalized in 2013 and later years.
- Investment tax credit – Eligibility for the mineral exploration tax credit has been extended to flow‑through share agreements entered into before April 1, 2014.
- Tax-free savings account (TFSA) – The annual TFSA dollar limit increased to $5,500 on January 1, 2013, for the 2013 contribution year, and remains at that amount for the 2014 contribution year.
For more information on how these tax credits may apply to you, please feel free to email one of our Partners directly.
Junaid Usmani, Mtax
SRJ Chartered Accountants is a Toronto and Mississauga based chartered accounting firm specializing in tax consulting for and advisory for individuals and businesses.