The Gateway: Maximizing the Impact of the Disability Tax Credit
In addition to reducing income tax through a non-refundable credit, the Disability Tax Credit (DTC) serves as a gateway to a wide range of additional tax benefits and government programs. Eligibility for the DTC can unlock enhanced credits, financial supplements, and long-term savings opportunities that go well beyond the tax return. Understanding how the DTC connects to these broader supports is essential for maximizing financial stability—both for individuals living with disabilities and the family members who support them. Unfortunately, many taxpayers miss this credit and their tax and financial advisors can certainly help when this happens.New Tax Filing Rules for Express Trusts and Non-resident Trusts
The new tax filing rules starting November 2021 affect certain types of trusts, specifically express trusts and non-resident trusts. Trust returns will need to be filed for tax years ending December 31, 2021 by the tax filing deadline of March 31, 2022. Highlights on what these trusts are used for follows:
New Needs: Tax, Retirement and Long-Term Planning
A recent study by the Canadian Institute of Actuaries sheds new light on the needs of Canadian retirees and pre-retirees for sound financial planning for their futures. COVID has had a dramatic effect on retirement plans, overall health and on preparedness for long-term care in the future. Surprisingly, more than half do not have a financial plan for retirement. This is an important time for astute tax and financial advisors to work more proactively with new and returning clients. Six planning tips follow.
Black Friday Sneak Peek: 2022 Tax Season Staff Training
Many proprietors in the tax industry are struggling to find qualified staff prepared for a complex 2022 tax season, and it’s coming up fast. Now is the time to train new and returning staff for filing season, and for Black Friday we’re extending our best offer of the year: only $395 per course (save 56%) when you enrol yourself or your team members in Basic Bookkeeping in a Digital World or Professional Income Tax Course – Entry Level certificate courses. Our goal is to help business owners prepare for another unprecedented filing season. As loyal Knowledge Bureau Report readers, you have an exclusive opportunity to take advantage of this training opportunity first.
PPP or IPP? 2022 CRA Limits Enhance PPP Tax Deductions
2022 CRA limits further enhance the tax deductions that Personal Pension Plan (PPP) clients have over Individual Pension Plan (IPP) clients. The gap of $91,194 in 2021 is now almost $12,000 larger in 2022! Those of you who like to project the extra wealth your clients will enjoy over long periods of time thanks to the power of tax-deferred compound interest should rejoice at this news, according to JP Laporte and Knowledge Bureau Partner for the first annual virtual Pension Conference for Accounting Firm Partners and their staff taking place on November 30, 2021. RSVP now - who wouldn't want an extra $100,000 in deductions over an IPP during one's career?
DTC Filters Subject to New Rules
Due to a court injunction, the Disability Tax Credit (DTC) Promoters Restrictions Regulations, which were to have taken effective November 15, 2021 have suspended until further notice. The regulations were to have limited fees paid for DTC applications to $100. We will keep you updated regarding the status of the injunction, but here’s what you need to know about the new regulations:
T3 Trust Filing Requirements Change in 2021
A big new tax filing deadline is approaching and tax and financial advisors must make their clients aware: all non-resident trusts and most express trusts resident in Canada must start filing T3 returns for tax years ending on or after December 31, 2021 and the filing deadline is coming up fast: March 31, 2022. Here’s what’s at issue:
