Life’s biggest milestones, whether it’s getting married, having a baby or buying your first home, bring significant changes – including to your tax situation. Here are a few tax credits and deductions that might apply to you.
Relationship status? Whether you’re in a common-law relationship, recently married or it’s complicated, your relationship status can impact your tax refund. Keep the Canada Revenue Agency updated on your current relationship status with the RC65 Marital status change form. If you’re married or common law, credits and deductions will be calculated based on your total household income instead of your personal income.
Eating for two? Most Canadian parents are eligible to apply for the Canada Child Benefit, a tax-free monthly payment to assist with the cost of raising children. When the program was revamped in 2016, eligibility was extended to foreign-born status Indigenous individuals who resided in Canada but were not Canadian citizens or permanent residents. For those taking time off with their little one, they may be eligible for Employment Insurance benefits, which will need to be reported as income on their tax return. More recently, expenses for assisted reproductive technologies to help with getting pregnant can now be claimed as a medical expense.
New home buyer? If you’re buying a house for the first time, you can take advantage of the First-time Home Buyers’ Tax Credit, a $5,000 credit that works out to $750 in tax savings. You can also tap into your Registered Retirement Savings Plan to help with your down payment, as a part of the Home Buyers’ Plan, and borrow up to $25,000 in one year, tax free.
Share the love! The new EI parental sharing benefit allows parents to take up to five additional weeks of time off starting in March 2019 after the birth or adoption of a child, in an effort to encourage Canadians to share the work of raising their children more equally. Parents selecting the standard duration of parental leave could receive up to 40 weeks of parental benefits while parents selecting the extended duration of parental benefits could receive up to 69 weeks.