How to navigate CRA’s new tax rules

You’ll have the opportunity to save your clients some extra cash this year, now that the new tax credits, rules and refunds announced in last year’s budget have hit the books.

The CRA has set out what you need to know about changes to tax rules, credit and refund eligibility and how to report items like pooled registered pensions plans, donations, and the investment tax credit.

Pooled registered pension plan (PRPP)

Fill out lines 115, 205, and 208 on the personal income tax return.

The PRPP is a new retirement savings option for individuals, including those who are self-employed. For more information, go to Pooled Registered Pension Plan (PRPP) – information for individuals.

Read: Understanding the pension income tax credit

Support for parents of murdered or missing children

Fill out other income line 130 on the personal income tax return.

Enter on line 130 amounts (grants) paid to you as a result of taking time away from work to cope with the death or disappearance of your child because of an offence or probable offence under the Criminal Code.

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Adoption expenses

Fill out line 313 on the personal income tax return.

For adoptions finalized in 2013 and subsequent years, the adoption period has been extended.

Read: 2 savings tips for new parents

Donations and gifts

Fill out line 349 on the personal income tax return.

For the 2013 to 2017 years, you may be able to claim a first-time donor’s super credit.

Read: 4 tips for making smart donations

Investment tax credit

Fill out line 412 on the personal income tax return.

Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2013. For more information, see Investment tax credit.

Read: Budget supports mineral exploration sector

Tax related to the non-purchase of replacement shares in a Quebec labour-sponsored fund

Fill out line 418 on the personal income tax return.

Your client may have to pay a special tax if she redeemed her shares from a Quebec labour-sponsored fund to participate in the Home Buyers’ Plan (HBP) or the Lifelong Learning Plan (LLP), but did not purchase replacement shares within the prescribed time.

Read: Home prices inch up in 2013, strong year ahead

Overseas employment tax credit

Fill out line 426 on the personal income tax return.

From 2013 to 2016, the overseas employment tax credit will be phased out. It will be eliminated for 2016 and subsequent years. For more information, see Form T626, Overseas Employment Tax Credit.

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Foreign property

Under certain circumstances, the reassessment period for a return has been extended.

Read: When clients inherit foreign property