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2019 Personal Income Tax Updates

Things to know:

The 2019 Federal Income Tax and Benefit Guide has been published by CRA to assist preparers.

CRA has introduced a new way to manage authorizations. ProFile has updated the existing T1013 and RC59 forms as a result.

  • click here to learn more about the new Authorize a Rep form that replaces the existing T1013 EFILE process.
  • click here to see new Business Consent form that replaces the existing RC59 EFILE process.

Bookmark this article for TY19.

Commencing with the 2019 tax return, keying fields on the return and on all federal, provincial, and territorial schedules and forms are renumbered by CRA requirement.

Existing line numbers that were out of sequence have been re-sequenced and any line numbers in 3 and 4 digits, respectively, have been changed to 5 digits.

Lines in the 1000, 7000, 8000 and 9000 ranges are not affected.

Learn more at the CRA information page.

Authorizing a Representative/Cancelling a Representative signature page (important change!)

Commencing in mid-February, Form T1013 giving online access will be discontinued by the CRA.

Although the electronic service for authorization requests will still be available in the program as in the past, the CRA no longer wants personal income tax programs to allow printing of Form T1013.

TP-766.3.4 - Income Tax on Split Income

This form calculates the income tax payable on certain types of income (hereinafter "split income") that you received in 2019, either directly or indirectly, from a trust (other than a mutual fund trust) or a partnership and that are not excluded amounts. This form is also to be used by legal representatives of deceased persons who received such split income in 2019.

  • Part 1 is records Income subject to income tax on split income
  • Part 2 calculates Income tax on split income
  • Part 3 calculates adjusted taxable income under the rules governing income tax on split income

Schedule 14, Climate Action Incentive (for residents of Alberta)

Commencing with the 2019 tax return the climate action incentive is available to residents of Alberta who qualify.

Schedule YT(14)  - Yukon Government Carbon Price Rebate

The Yukon Government Carbon Price Rebates is an amount paid to individuals and businesses to help offset the cost of the federal carbon pollution pricing levy.

Starting in July 2020 the rebate payments will be issued quarterly to individuals separately from the income tax refund. The taxpayer and their spouse or common-law partner (if applicable) must file a return as a resident of the Yukon every year to continue receiving the rebate.

The taxpayer will receive the basic rebate automatically based on information contained in their return. The Yukon carbon price rebate is the same amount for every resident of Yukon, regardless of age, income, or marital status. The taxpayer may qualify for a 10% remote supplement if, on December 31, 2019, they resided outside Whitehorse.

To claim the remote supplement, indicate “Yes” at Part 1, Line 63790, to the question “Do you reside outside of Whitehorse on December 31 of the tax year?”

To display the estimated rebate that will be paid to the individual, choose “Yes” to the question “Display estimated rebate on this taxpayer’s return?”

To claim the Yukon Business Carbon Price Rebate, complete Part 2. The rebate is a refundable credit based on the UCC and CCA of eligible Yukon assets used to calculate your business income in the year. To calculate the rebate, indicate the amount of eligible UCC and CCA for all eligible assets under Category 1, 2 and/or 3.

ON479

The following line has been added on form ON479:

63050 Childcare access and relief from expenses tax credit.

The calculation occurs on form ON479-A, which can be found in ProFile under the form name “ONCare”.

ON428A - Low-income individuals and families tax (LIFT) credit

Individuals that were Canadian residents on January 1, 2019 and Ontario residents on December 31, 2019 may be eligible for the non-refundable Low-income Individuals and families tax (LIFT) credit.

The taxpayer could receive up to $850 to be applied against any Ontario tax payable, as long as they have employment income.

If you have a spouse or common-law partner who has employment income, they can also claim this credit on their return.

To claim the credit, complete form ON428A.

Form T90 - Income Exempt under the Indian Act

This form calculates the net exempt income for taxpayers registered or entitled to be registered as an Indian under the Indian Act. This income is reported to Canada Revenue Agency to determine the taxpayer’s Canada training credit limit (CTCL) and Canada Workers Benefit (CWB).

For taxpayers with this exempt income, indicate on line 38105 of the Schedule 6, Canada Workers Benefit, if the exempt income should be included in calculating the CWB.

T224 - Nova Scotia Venture Capital Tax Credit

Effective for the 2019 tax year, a new non-refundable venture capital tax credit has been introduced for individual investors who invest in a venture capital corporation or fund.

The credit can be claimed for eligible investments made in a qualifying venture capital fund that was acquired in 2019 or in the first 60 days of 2020.

The credit is equal to 15% of eligible investments and can be used to reduce your Nova Scotia tax payable. Any unused credits can be carried forward for seven years.

T225 - Nova Scotia Innovation Equity Tax Credit

Effective for the 2019 tax year, a new non-refundable tax credit has been introduced for eligible investors who invest in an approved corporation.

The credit can be claimed for eligible investments made in 2019 or in the first 60 days of 2020.

The maximum annual eligible investment is $250,000.

The credit is equal to 35% of eligible investments made in approved corporations (45% for eligible investments made in approved corporations within the oceans technology and life sciences sectors) up to a maximum claim of $112,500 per tax year and can be used to reduce your Nova Scotia tax payable. Any unused credits can be carried forward for seven years.

T7DRA pre-print

Pre-printed T1 remittance form is removed from ProFile.

Schedule 1 - Federal Tax

The Schedule 1 has been eliminated. The Federal tax calculations are now included under step 5 of the Federal Income Tax and Benefit Return.

S4 - Statement of investment income, carrying charges and interest expenses

CRA has discontinued this form.

The detailed summary of taxable dividends, interest and other investment income included on lines 12010, 12000 and 12100 has been moved to the worksheet “Other income”. Additional investment income not already included on slips can be entered here.

The detailed summary of carrying charges and interest expenses included on line 22100 has been moved to the worksheet “Other deductions”. Any deductions not already included on slips can be entered here.

S12 - Home Accessibility Expenses

CRA has discontinued this form.

Home Accessibility Expenses for line 31285 have been moved to the worksheet “Other credits”. Enter eligible home accessibility expenses here if you are claiming this credit.

Additional removed forms

  • T1103 - Authorizing or Cancelling a Representative
  • RC59 - Business consent for offline access
  • RC59X - Cancel business consent or delegated authority
  • TP1 (Schedule I) and RL-30 slip.As of 2019, families no longer have to pay an additional contribution. Consequently, you will no longer receive RL-30 slips.

Schedule 14 – Climate Action Incentive 

Schedule 14 is no longer applicable for New Brunswick as the province will introduce its own carbon pricing starting in April 2020.

The CRA also modified the amounts used to calculate the climate action incentive amount for Ontario, Manitoba and Saskatchewan residents.

 

TP1 Other credit – Tax credit for career extension

The tax credit for experienced workers is now called the tax credit for career extension. The age of eligibility for the tax credit has been lowered from 61 to 60. The maximum eligible work income on which the credit is calculated is $10,000 for workers aged 60 to 64 and $11,000 for workers aged 65 or over. The maximum tax credit is $1,650.

 

QPP and LE-35 – Deduction for contributions to the Québec Pension Plan (QPP) and the Canada Pension Plan (CPP)

Deduction for contributions to the Québec Pension Plan (QPP) and the Canada Pension Plan (CPP) Changes to the deduction for QPP and CPP contributions came into effect on January 1, 2019. As part of the changes, you can now claim a deduction whether you earned employment income or income from self-employment.

 

Tax shield (TP1029.BF)

Beginning in 2019, if you and your spouse on December 31 are splitting the tax shield, you can decide together on the amount each of you will receive.

 

T1 Income Tax and Benefit Return

New lines added:

  • Line 10105 - Tax-exempt income for emergency services volunteers
  • Line 11905 - EI and PPIP maternity and paternity benefits
  • Line 13010 - Taxable scholarship income and research grants
  • Line 22215 - Deduction for CPP/QPP enhanced contributions

 

Schedule 3 – Capital Gains (or Losses)

Capital gains at 100%.

Disposition received pursuant to subsection 100(1) of the Income Tax Act from a partner selling an interest in a partnership are taxed at the 100% inclusion rate. The amount of this gain will be reported on line 50410 and included in full in the total capital gains amount calculated on line 19900 on the Schedule 3 and on line 12700 of the return. For prior year tax returns for 2012 to 2018, use supporting line number 5041.

The following supporting line has been added to support Schedule 3:

  • 50410 Capital gains at 100%

Schedule 6 – Canada Workers Benefit

For 2019 and later years, the working income tax benefit (WITB) has been renamed as the Canada Workers Benefit (CWB).

The following lines have been added to (or to support) Schedule 6:

  • 53755, CWB income from other returns (required on a subsection 70(1) return, if applicable)
  • 38105, Are you choosing to include tax-exempt income in calculating the CWB?

Schedule 11 – Federal Tuition, Education, and Textbook Amounts

The following supporting lines have been added:

  • 32000, Eligible tuition fees paid to Canadian education institutions for 2019
  • 32001, Eligible tuition fees paid to foreign educational institutions for 2019

NL428 and NLCredits – Search and rescue volunteers’ amount

The search and rescue volunteers’ amount is a new non-refundable tax credit available to eligible volunteers beginning January 1, 2019. The existing volunteer firefighters’ amount remains in place, and individuals who volunteer in both capacities can combine hours and choose one credit or the other.

The following line has been added on the Form NL428:

    • 58316 Search and rescue volunteers’ amount

NS428

New lines have been added to claim the amounts from:

Form T225:

    • 62250 Innovation equity tax credit

Form T224:

    • 62300 Venture capital tax credit

NB428 , NB(S11) and  NB(S2) – Tuition amounts

The tuition tax credit has been re-introduced for 2019 and later tax years. New Brunswick tuition fees paid for 2017 and 2018 can be claimed on the 2019 return and can be used in that year or carried forward to a future year. These amounts can only be used by the student and cannot be transferred to a supporting person.

The following lines have been added on the Schedule NB(S11):

  • 59140 Eligible tuition fees paid for the current tax year
  • 59141 Eligible tuition fees paid for 2017 and 2018
  • 59200 Provincial tuition amount transferred

The following line has been added on the Schedule NB(S2):

  • 59090 Tuition amounts designated by your spouse or common-law partner

The following line has been added on the Form NB428:

  • 58600 Tuition amounts transferred from a child

AB428 and ABCredits – Investor tax credit

Claim this refundable tax credit if you acquired shares from a venture capital corporation (VCC), eligible business corporation (EBC), or community economic development corporation (CEDC) registered in Alberta at any time in 2019 (that you did not claim on your 2018 return). Your tax credit certificate shows the date you bought your shares under ‘‘Investment date.’’ You may no longer acquire shares in year 2020.

The following line is no longer required on the Form AB428:

  • 60075 Investor tax credit – First 60 days subsequent to the current tax year

ON428

The following line has been added on the Form ON428:

  • 62140 Low-income individuals and families tax credit

ON479

The following line has been added on the Form ON479:

  • 63050 Childcare access and relief from expenses tax credit

BC428 and BC(S11) - Education amount

The education tax credit has been discontinued. Students can continue to carry forward unused amounts to claim in a future year.

The following lines on the Schedule BC(S11) have been deleted:

  • 59160 Part-time education amount
  • 59180 Full-time education amount

YT479 - Venture capital tax credit

The maximum credit amount that can be claimed by an individual for the venture capital tax credit has increased.

The following lines have been added to the Form BC479:

  • 60489 Venture capital tax credit – January 1 to February 19, 2019
  • 60491 Certificate number – Shares acquired after February 19, 2019
  • 60496 Certificate number – Shares purchased during the first 60 days of the year following the tax year

YT479 - Yukon Business Carbon Price Rebate

The following line has been added on the Form YT479 to claim the amount from YT(14):

  • 63855 Business carbon price rebate

ProFile users may encounter forms that are in “Draft” mode and displaying a watermark.

The watermark means that the form has not yet been approved by CRA for the upcoming tax year and cannot be filed (via paper or electronically).

Why isn’t the form approved yet?

Tax software providers receive staged CRA approvals throughout the year for the various T1 module forms.

For example, multi-jurisdictional forms typically come out of draft in later tax year releases, where other forms (for example, T1013) typically come out of draft earlier in tax year releases.

How will I know when the form is approved?

Intuit includes any approved forms in a software release as soon as possible following CRA approval. The “What’s New” notes for each release details a list of any CRA-approved forms included.

We recommend clicking Online -> Check for Updates... in the top ProFile menu bar regularly throughout the tax season to ensure that you are using the latest ProFile version.

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