Note: CRA 2018 income tax and benefit information for individuals is reviewable available here.
Employee home relocation loan deduction (line 248 of the return)As of January 1, 2018, this deduction has been eliminated.
Public transit amount (Schedule 1)The public transit amount has been eliminated.
Donations and Gifts (Schedule 9)First-time donor’s super credit has been eliminated.
Climate Action Incentive (CAI) (Schedule 14)The Climate Action Incentive is a new refundable credit available as of January 1, 2018.
This federal payment is available only to residents on December 31 of the year in New Brunswick, Ontario, Manitoba and Saskatchewan.
The incentive rates differ from province-to-province.
For Ontario residents:
- base amount : $154.00
- eligible spouse/common-law : $77.00
- single parent’s dependent : $77.00
- qualified dependent: $38.00 each
Tax on split income (TOSI) (line 424 of Schedule 1 and T1206)As of January 1, 2018, in addition to applying to certain types of income of a child born in 2001 or later, TOSI may now also apply to amounts received by adult individuals from a related business. Where TOSI applies, the disability tax credit can now be used to reduce the individual’s tax payable for the year.
Income that is subject to TOSI must now be added to the individual’s net income for the purpose of calculating various deductions, credits, and benefits.
Federal-capital cost allowance (CCA)The economic statement introduces the AII, which will provide an increased first-year capital cost allowance (CCA) deduction for “eligible property” acquired after November 20, 2018 and available for use before 2028.
CCA class that is 1.5 times the standard CCA deduction for that class, subject to a maximum of 100% (effectively suspending the half-year rule and providing a CCA deduction that is up to three times the usual first-year maximum).
For example, a Class 8 property eligible for CCA at a maximum annual rate of 20% - normally reduced to 10% in the first year - acquired after November 20, 2018, will now be eligible for CCA of up to 30% in the first year it becomes available for use. The maximum annual CCA in respect of the property for subsequent years will continue to be 20%.
The increased first-year deduction will be phased out for property that becomes available for use after 2023 and before 2028.
The AII can only be claimed in the first year a property becomes available for use, so if a CCA deduction is deferred in that year, there will be no enhanced deduction available in a later year. Total CCA available over the life of a property will not change as a result of the AII.
Joint Election to Split Pension Income - veterans’ benefits (Form T1032)For the 2018 and later tax years, a new box 128 will be added to the T4A slip to report certain pension payments made to veterans aged 65 or older.
The amount in box 128 is included in existing box 016 of the T4A slip and it identifies the veteran’s benefits that are eligible for pension income splitting, but subject to the same money purchase limitation as RCA payments.
Tuition and education amountsThe tuition amount was only allowable for eligible tuition fees paid in respect of enrolment before September 5, 2017.
As a result, the tuition and education amounts, as well as tuition and education amounts transferred from a child, or from a spouse or common-law partner, are no longer allowed.
British ColumbiaThe following non-refundable tax credits have been eliminated:
- Children’s fitness amount
- Children’s fitness equipment amount
- Children’s arts amount
- Education coaching amount
- BC caregiver amount
Review pages 7-8 of the "Guide to the Income Tax Return" (PDF) for details on changes for Quebec.
Political contributionsPolitical contributions to the Senatorial Selection Campaign have been eliminated.
Tuition fee income tax rebateThe MB tuition fee income tax rebate and the rebate advance have been fully eliminated. No rebate will be claimable. Any unused rebate will lapse.
Odour-Control tax creditThe MB Odour-Control tax credit has been eliminated. Any unused amount can continue to be claimed as a carry forward.
Nutrient Management tax creditThe MB Nutrient Management tax credit has been eliminated.
Nova ScotiaFor the 2018 and subsequent years, Nova Scotia has added an income-tested supplement for calculating:
- basic personal amount
- age amount
- the spouse or common-law partner amount
- amount for an eligible dependant