New for 2019
Elimination of the additional contribution for subsidized educational childcare (Schedule I)
As of 2019, families no longer have to pay an additional contribution. Consequently, you will no longer receive RL-30 slips.
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.
See the instructions for line 391.
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.
See the instructions for line 248.
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.
See the instructions for line 460.
Withdrawals under the Home Buyers' Plan (HBP)
On March 20, 2019, the maximum amount that can be withdrawn from a registered retirement savings plan (RRSP) under the HBP increased from $25,000 to $35,000.
See point 9 in the instructions for line 154.
Dividends from taxable Canadian corporations
On January 1, 2019, the gross-up percentage for ordinary dividends went from 16% to 15%. See the instructions for line 128.
Rate of the dividend tax credit
On January 1, 2019, the rate of the dividend tax credit applicable to the actual amount of ordinary dividends went from 7.2848% to 6.3825%.
The rate of the tax credit applicable to the actual amount of eligible dividends went from 16.3668% to 16.2564%.
See the instructions for line 415.
Tax credit for the reporting of tips
Beginning in 2019, the tax credit can be claimed for the portion of indemnities calculated on tips and paid for leave taken to fulfill family obligations or for health reasons.
See point 10 in the instructions for line 462.
Deduction for exploration and development expenses
The deduction for Canadian development has increased for expenses incurred after November 20, 2018, and renounced under a flow-through share agreement entered into after that date.
The deduction for Canadian oil and gas property expenses was also increased for expenses incurred after November 20, 2018. The increase applies only for the year in which the expenses were incurred.
Québec prescription drug insurance plan
On July 1, 2019, the contribution rates for the Québec prescription drug insurance plan were increased. Consequently, the maximum premium has been raised from $616 to $636. The maximum premium for 2019 is therefore $626.
You do not have to pay a premium if any of the following situations apply to you:
- You did not have a spouse on December 31, 2019, and the amount on line 275 of your return is $16,460 or less.
- You had a spouse on December 31, 2019, and the amount on line 275 of your return plus the amount on line 275 of your spouse's return totals $26,670 or less.
- You were born before January 1, 1954, and all your medications were free throughout 2019 because you received 94% or more of the Guaranteed Income Supplement (calculated without the top-up benefit).
Full indexation of the tax system
A number of other amounts have been increased, including the following:
- the deduction for workers (line 201);
- the basic personal amount (line 350);
- the income thresholds at which certain tax credits are reduced;
- the amount for a person living alone (line 20 of Schedule B);
- the age amount (line 22 of Schedule B); and
- the basic exemption for calculating the contribution to the health services fund (Schedule F).