The Ontario Clean Energy Benefit (OCEB) is helping Ontario families, farms and small businesses through the transition to a cleaner, modern electricity system. Thanks to the OCEB, Ontario families can expect stable bills this summer and fall with 10% off their monthly electricity bills.
Who is eligible for the Ontario Clean Energy Benefit (OCEB)?
All families, farms and small businesses in Ontario hat receive an electricity bill is eligible for this benefit.
How much is the Savings?
The OCEB provides a 10% rebate off your total electricity bill – including electricity costs, regulatory charges, the debt retirement charge and taxes.
What are the Benefits for Families?
A typical residential consumer will see annual savings of approximately $153.60.
What are the Benefits for Farms and Small Businesses?
Typical farm and small business savings could range between $1700 and $2050, depending on size and electricity usage.
How does one get the OCEB?
You don't have to do anything – the OCEB will be automatically added to every eligible consumer's bills for the next five years. The Ontario Clean Energy Benefit applies to electricity charges incurred as of January 1, 2011.
How Can You Save?
• Ontario Clean Energy Benefit
Provides a 10 per cent benefit to help consumers manage rising electricity prices for the next five years.
• Northern Ontario Energy Credit
A new, permanent energy credit designed to help families and individuals in the North who face higher energy costs.
• Ontario Energy and Property Tax Credit
Up to $1,025 for eligible Ontarians paid quarterly, beginning in 2011.
The Ontario Energy and Property Tax Credit (OEPTC)
What is this Ontario Energy and Property Tax Credit Program?
The Ontario Energy and Property Tax Credit (OEPTC) is designed to help low- to middle-income Ontario residents with the sales tax on energy and with property taxes. The maximum credit for 2010 is $1,025 for seniors and $900 for non-seniors.
A 2010 personal income tax return must be filed and the credit will be paid as a lump-sum as part of the 2010 tax refund or reduce taxes otherwise payable. For 2011, the maximum credit is $1,044 for seniors and $917 for non-seniors. The 2011 OEPTC will be paid in four installments starting in July 2011 and will be based on the personal income tax return filed for 2010.
Who is Eligible to receive the Ontario Property and Tax Credit?
• Ontario residents who are 18 or older, or had a spouse or common-law partner on December 31, 2010 (for both the 2010 and 2011 credits), or are parents who lived with their child in 2010 (for the 2010 credit) or who live with their child on the first day of the payment month (for the 2011 credit).
• People with low- to middle-income who pay rent or property tax for a principal residence in Ontario.
• People living on reserves are generally eligible for the energy portion of the credit, as are those people living in public long-term care homes.
How do you qualify for this Credit?
To receive the OEPTC, you have to apply for it by completing and attaching Ontario forms “ON-BEN” and “ON479” to your personal income tax return. These forms are included in the Ontario T1 general personal income tax and benefit package.
If you qualify to receive the 2011 OEPTC, based on your 2010 return, your payments will be issued in July and December 2011, and in March and June 2012.
Get the Tax Cuts Working for You ------ Reach out and Claim yours (Canadian Taxation)
Tax cuts are an essential part of the Government of Canada's effort to stimulate the economy and to create and maintain jobs
You may be able to save money by claiming any of the following tax credits:
• Children's fitness tax credit :The children's fitness tax credit is a non-refundable tax credit of up to $75 based on eligible fitness expenses (maximum $500) paid for each child who is under 16 years of age.
• First-time home buyers' tax credit: First-time home buyers can claim a non-refundable tax credit of $750 for the acquisition of a qualifying home.
• Pension income splitting: One of a wide range of tax cuts available. By choosing this option each tax year, pensioners can split up to 50% of eligible pension income with their spouse or common-law partner and reduce their overall tax paid.
• Public transit tax credit: The public transit tax credit is a non-refundable tax credit that helps individuals covers the cost of public transit.
• Tradesperson's Tools Deduction: Trades people can deduct from their income part of the cost of tools purchased throughout the year.
For more information visit Canada Revenue's web page for : Individuals
The New Ontario Harmonized Sales Tax (HST), an Update.
Starting on July 1, 2010, you'll see a new harmonized sales tax (HST) in Ontario. The 13% HST combines the 5% GST and the 8% PST into one tax to be collected by the federal government.
This is a big, important change that will make Ontario more attractive to businesses. And, these changes include a number of personal and business income tax cuts, credits and benefits that could affect you.
For more information/details on how these tax changes will affect you as individual, please follow theNews Updateson the right hand column of this blog, or vist Ontario's page:
Watch this informational video (click on the play button) on the new Ontario HST explaining the details of this new tax structure: What you need to know about the New HST?
This update is presented for general information only, please consult your financial advisor on how this tax change will affect your specific financial situation.
Yes - - - a Tax Free Savings Account (TFSA) can work for you !
One year ago, the federal government introduced the Tax - Free Savings Account (TFSA). It has been called the single most important personal savings vehicle since Registered Retirement Savings Plans (RRSP) was launched in the late 1950’s.
Is theTFSA really that good – and should you have one? The answers are yes and yes – but only if you are just starting out in life, retired or anywhere in between. Is that you?
Then here’s why you should have a TFSA:
Tax-free growth: As a Canadian over the age of 18, you are eligible to save up to $5,000 a year in TFSA investments that grow in a tax-free basis.
Tax-free withdrawals: You can make TFSA withdrawals at any time for any reason – and the money you withdraw is tax free.
Make the most of your contribution room: You can contribute $5,000 a year plus the total of withdrawals made in the prior year. And if you don’t use all of your contribution room right away, it accumulates year after year – fill it at any time you choose. By the way, a contribution to investments held within a TFSA does not affect RRSP contribution room.
Investment flexibility: Investments that are TFSA eligible can be the same as those available for investments held within RRSPs, including mutual funds, money market funds, Guaranteed Investment Certificates (GICs), publicly traded securities, and government and corporate bonds.
Personal financial flexibility: A TFSA works well for short- or long-term financial goals such as:
• A ready source of emergency funds.
• Saving for a new car, cottage or dream vacation.
• Saving for the down payment on a new home or starting your own business.
• Reducing taxes on your non-registered investments.
• Adding to your retirement savings.
• Adding to education savings beyond Registered Educational Savings Plan (RESPs).
• Splitting income with your spouse to minimize taxes.
• And TFSA withdrawals don’t affect your eligibility for income-tested federal benefits such as Old Age Security (OAS).
There are other ways in which a TFSA could work for you. Your professional advisor can take a close look at your personal situation and help you get the most from a TFSA and every other element in your overall financial plan.
This is presented for general information only, please consult your professional advisor on your specific personal financial situation, and how a TFSA can fit into your financial plan.
Play this video on how you benefit from a TFSA. For more information on TFSA, visit:
What is new for Canada's Federal Tax Filing for 2009?
What is new for Canada's Federal Tax Filing for Tax Year 2009?
Tax Cuts at your Fingertips, Reach out and Claim Yours!!
Claim the new home renovation tax credit (HRTC) administered by the Canada Revenue Agency. Keep all your receipts to prove it! That will give you a a home renovation maximum tax credit of one thousand, three hundred, and fifty dollars ($1,350).
And that's just for starters.
The new maximum for the HBP (Home Buyers Plan), one is able to withdraw twenty-five thousand dollars ($25,000) from your RRSP under the Home Buyers' Plan to put towards the purchase of a new home.
That's good news for the housing market.
And, with the new Home Buyer's Tax Credit, you are also eligible to claim another non-refundable tax credit of $750!
And then, of course, there are increases to many of the non-refundable tax credits that all of us may be able to claim.
For instance, amounts relating to dependents, and spouses or common-law partners.
The site has a ton of information. Just click on "Individuals" and get info that's specific to your tax situation, no matter who you are! Or, click on "Online services" to get all the info about the CRA's quick, easy, and secure services.
And some of the biggest news items are always in the Key Information, Announcements and Highlights sections right on the Home page.
You can file your return using NETFILE-certified software, and just filed it through NETFILE on the CRA Web site.
It is easy, secure, and barely took any time.
And, if you owe money, there's a new way to pay called My Payment.
Canada's Federal Budget 2010- What is in it for you?
Canada's Federal Budget 2010-----What is in it for you?
Canada's Federal Budget 2010- A Summary Update
On March 4, 2010, the Honourable Finance Minister James Flaherty presented Canada's 2010 Federal Budget which contains several key measures of interest to you as a taxpayer. This budget summary contains highlights of these proposals, which are not yet law. Contact your Financial Advisor to ask advice or guidance on how these proposals may affect your financial plans.
Parental Government Benefits – Shared Custody:
Currently, when parents share custody of a child, only one individual can receive the Canada Child Tax Benefit (CCTB) and Universal Child Care Benefit (UCCB) amounts in a particular month and the child component of the GST/HST credit in respect of a particular quarter. The Budget proposes to allow two eligible individuals to receive CCTB and UCCB amounts and to receive GST/HST credit amounts when a child lives more or less equally with two individuals who live separately. These individuals will each receive 50% of the annual entitlements effective for benefits payable starting in July, 2011.Universal Child Care Benefit for Single Parents:
The (UCCB) is $100 per month for every child under the age of 6 years. For parents in a married or common-law relationship, this payment is taxable to the spouse with the lower income.
Single parents are required to include the amount in their income and effectively be taxed at their marginal tax rate.
The Budget proposes to allow a single parent receiving the benefit the option to include all amounts received under the UCCB in either the parent’s income or in the income of the child for whom an Eligible Dependant Credit is claimed. If included in the income of the child, this will reduce the Eligible Dependant Credit the parent can claim. If the single parent is unable to claim an Eligible Dependant Credit, he or she will have the option of including the aggregate UCCB amount in the income of one of the children for whom the UCCB was paid.
Changes in Stock Option:
Repeal of Stock Option Tax Deferral for Publicly Traded Securities - If an employee acquires a share of his or her employer’s corporation under a stock option agreement, the difference between the fair market value of the share at the time the option is exercised and the amount paid by the employee to acquire the share is taxable as employment income in the year the option is exercised. If certain conditions are met, the employee is also entitled to a stock option deduction equal to one-half of the employment benefit, which results in the taxation of stock options at capital gain like tax rates.
Since the year 2000, employees exercising stock options of publicly traded companies could elect, within limits, to defer the taxation of employee stock option benefits until the year in which the shares were sold. This election was available on up to $100,000 of options vesting in a particular year (based on the option strike price). The purpose of this measure was to reduce the incidence of employees being forced to sell shares of their employer in order to pay the income tax triggered by the exercise of the option.
The 2010 Budget proposes that this tax deferral election be repealed with respect to options exercised after 4:00 PM Eastern Standard Time on March 4, 2010.What are the proposed reliefs for the repeal of this tax deferral election?Some taxpayers who took advantage of the tax deferral election on stock options have experienced declines in the value of their optioned shares to the point that the value of their shares is less than the tax liability that would be owing should they decide to sell the optioned shares.
To provide relief, the Budget proposes an elective tax treatment that would limit the tax liability on the employee stock option benefit to the proceeds realized from the disposition of the shares.
Elective Tax Treatment:
For individuals who disposed of optioned shares prior to 2010, they will have to make an election for this special tax treatment on or before the filing due date for 2010 (generally April 30, 2011). Individuals who have not disposed of their optioned shares must do so before 2015 in order to be eligible for this elective tax treatment.
Stock Option Cash Outs – As mentioned above, the 50% stock option deduction results in the taxation of employee stock option benefits at capital gain like tax rates. Unlike other remuneration paid to employees, the corporate employer does not get a deduction for the stock option benefit if the employee exercises the option to acquire shares. However, some stock option plans have been structured to provide the employee with the option of receiving cash instead of shares at the time of exercise. In situations where the employee elects to receive cash, under the existing law, it is possible for the employer to deduct the payment made to the employee and for the employee to also claim the 50% stock option benefit deduction. For options exercised after 4 p.m. EST Time on March 4, 2010, the Budget proposes measures to prevent both the 50% stock option deduction and a deduction by the employer from being claimed for the same stock option employment benefit.
US Social Security Benefits:
The Budget proposes that Canadian residents who started receiving U.S. Social Security benefits prior to 1996, and who have continuously received those benefits since that time, must only include 50% of those benefits received on or after January 1, 2010 as taxable income.These rules may also apply to survivors.
Canadian residents who started to receive benefits on or after January 1, 1996 must continue to report 85% of the benefits received as taxable income as per the Canada-US Tax Convention.
Scholarship exemption:
Currently, post-secondary scholarships, fellowships, and bursaries are fully exempt from tax.The Budget proposes to make post-doctoral fellowships taxable.The Budget also proposes that if the educational program is part-time and the student is not disabled, then the exemption will be limited to the amount of tuition paid for the program plus the costs of program-related materials. These measures will apply to the 2010 and subsequent taxation years.
Medical Expense Tax Credit:
The medical expense tax credit provides a non-refundable tax credit for eligible medical expenses that exceed the lesser of the annual threshold ($2,024 for 2010) and 3% of net income.
The Budget proposes that expenses incurred for purely cosmetic procedures (including related services and other expenses such as travel) would not be considered eligible medical expenses for the purposes of this credit. Purely cosmetic procedures would generally include surgical and non-surgical procedures purely aimed at enhancing the individual’s appearance.
A cosmetic procedure that is required for medical or reconstructive purposes will continue to qualify for the medical expense tax credit. This measure will apply to expenses incurred after March 4, 2010.
Registered Disability Savings Plan changes:
A Registered Disability Savings Plan (RDSP) allows families and friends to save for the long-term financial security of a person with a severe disability. Where an RDSP has been established for an eligible beneficiary and their family meets certain income tests, the government may contribute Canada Disability Savings Bonds (CDSBs) of up to $1,000 annually ($20,000 lifetime).
Where eligible contributions are made, the government may also contribute Canada Disability Saving Grants (CDSGs) of up to $3,500 annually ($70,000 lifetime) to the plan.CDSG and CDSB room will now carry forward - Currently, if a contribution is not made or an RDSP is not established during a year of eligibility, the CDSG and CDSB “room” for that year is lost.
The Budget proposes to allow CDSG room and CDSB room to carry forward for up to 10 years. The amount of the CDSG and CDSB that will be awarded in any given year will be based on the family income during each of the prior 10 years (but not before 2008, the year RDSPs became available). There is no limit on the CDSB amount that can carry forward, but CDSG will only be paid on unused entitlements up to an annual maximum of $10,500. The carry forward will be available starting in 2011.
Rollovers from RRSPs/RRIFs to RDSPs - Currently, upon an individual’s death, if their RRSP/RRIF proceeds are payable to the individual’s financially dependent infirm child or grandchild, they can be transferred to that child or grandchild’s own RRSP/RRIF on a tax-deferred basis. The Budget proposes to extend these rollover provisions to include transfers to the child or grandchild’s RDSP. The amount transferred to the RDSP would count against the RSDP beneficiary’s lifetime $200,000 contribution limit, but these “rollover contributions” would not be eligible to receive the CDSG and would be taxable when withdrawn. These measures will be effective for deaths occurring on or after March 4, 2010. Special transitional rules will apply for deaths that occurred after 2007 (when RDSPs became available) and before 2011, effectively allowing the proposed measure to apply as of January 1, 2008. To allow time for financial institutions and the government to adjust their RDSP systems, RDSP contributions benefiting from the proposed RRSP/RRIF rollover measures cannot be made before July, 2011.
Requirement to Report Aggressive Tax Planning Transactions:
The Budget introduces proposals requiring taxpayers to report aggressive tax planning transactions. Under the proposals, a reportable transaction is defined as a tax avoidance transaction that bears at least two of the following three features:
1. The promoter or tax advisor is entitled to fees that are contingent on the tax results achieved or the number of participants;
2. The promoter or tax advisor requires “confidentiality protection” in respect of the transaction;
3. The taxpayer or the person who entered into the transaction for the benefit of the taxpayer obtains “contractual protection” in respect of the transaction.
Discovery of a reportable transaction that has not been reported could result in the denial of the tax benefit resulting from the transaction. If the taxpayer elects to claim the tax benefit, a penalty for not reporting the transaction would apply. Subject to modifications from public consultations, these proposals would apply to avoidance transactions entered into or completed after 2010.
This Canada Federal budget 2010 summary update is presented as a source of general information only, and is not unintended as a solicitation to buy or sell specific investments, nor is it intended to provide legal or tax advice. Please consult your Financial Advisor for advice based on yourspecific circumstances.
play the video of "Canada's Economic Action Plan" or visit: actionplan.gc.ca for more information on the federal government initiatives for growth stimulus.
Tax Cuts at your Fingertips - Reach Out and Claim Yours
Beat the tax with these year-end tax tips for tax year 2009
Tax-planning should be a year round activity but even if you’ve been otherwise occupied this,year, you still have time to save money on your 2009 taxes by using strategies like these. Be deadline savvy: File your tax return and make tax payments on time to avoid penalties and interest. Payments that qualify for tax credits and deductions should be made by December 31. Deduct to save: Take full advantage of all tax deductions including the most important – your Registered Retirement Savings Plan (RRSP) deduction. Be sure to fill up all your RRSP
contribution room.
Give yourself all the credit: Make full use of tax credits to reduce your tax bill by:
• Pooling medical expenses on the tax return of the lower earning spouse.
• Pooling charitable donations or carrying them forward for up to five years to surpass the
$200 threshold that increases your credit.
• Using the spousal credit for the higher-earning spouse.
• Transferring the age, disability, tuition and/or education credits to a spouse or supporting
relative when not used by a dependent.
• Don’t forget the first time homebuyer, home renovations and moving expenses credits. Split to save: Income-split by sharing pension income with a spouse, through a spousal RRSP or by paying a salary to (eligible) family members. Be RRSP savvy: If you’re turning 71 this year, you must wind up your RRSP and need to
decide whether to take the cash (poor choice) or transfer the funds to investments held within a Registered Retirement Income Fund (RRIF) or annuity (much better choices). If you have earned income, you can continue making contributions to a spousal plan until your spouse reaches age 71.
Save tax-free: Make up to a $5,000 contribution to a Tax-Free Savings Account (TFSA). The contribution isn’t tax deductible but money and interest inside your TFSA is tax-free and so are withdrawals that you can make at any time for any purpose. Amounts withdrawn are added to your TFSA contribution room for the following year.
Make down investments pay off: Plan to sell money-losing investments by the December 31 settlement date, which creates capital losses than can offset capital gains. Buy now to save: If you’re self-employed and claiming the capital cost allowance (CCA) on
depreciable assets, buy them before year end to speed up tax write-offs.
Move to save: If you’re moving to a province with a lower tax rate, do it before December 31 and you’ll pay the lower rate for the full year. If you’re moving to a province with a higher tax rate, try to delay until 2010.
And here’s the best tax-saving tip of all: Talk to your financial advisor/tax advisor to be certain you make the most of these and other tax-reduction strategies that are available to you.
This article is presented for general information only, and not a solicitation to buy or sell any financial products. Consult your financial advisor for advice regarding your financial or tax situation.
Canada's Economic Action Plan - Support for Workers
Canada’s Economic Action Plan – Support for Workers
(play the enclosed video)
· Retraining programs for laid-off workers
· Work sharing programs
· Extended Employment Insurance benefits
· New benefits for the self-employed
· Apprenticeship Programs and Incentives for workers who wants to change careers.
Apprenticeship Grantsare designed to encourage more apprentices to complete their training.Through the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant, registered apprentices who complete their apprenticeship training and receive their journeyman/journeywoman certification in a designated Red Seal trade could be eligible to receive up to a maximum of $4,000.
The Apprenticeship Incentive Grant (AIG)is a taxable cash grant of $1,000 per year, up to a maximum of $2,000 per person, available to registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in one of the Red Seal trades.Apprentices should be aware that there is a deadline to apply. Apprenticeship Completion Grant (ACG)
The Apprenticeship Completion Grant (ACG) is a $2,000 taxable cash grant designed to encourage apprentices registered in a designated Red Seal trade to complete their apprenticeship program and receive their certification. Eligibility is retroactive to January 1, 2009.
The completion grant will be offered to apprentices who complete their training, become certified journeymen/journeywomen in a designated Red Seal trade and who obtain either the Red Seal endorsement or a provincial or territorial Certificate of Qualification.
Apprentices should be aware that there is a deadline to apply.
