Financial Season Spotlight
New tax credit for parents
Victoria, British Columbia, January 17, 2012 ... The Honourable Gail Shea, Minister of National Revenue, today visited the Art Gallery of Greater Victoria to promote the children's arts tax credit, a new non-refundable credit passed in the 2011 federal budget.
"Parents whose children participate in paid artistic, cultural, recreational, and developmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity. Our Government believes whether a child is inspired by Justin Bieber, Hedley, Ryan Reynolds, Trevor Linden or Maelle Ricker, parents should receive a tax credit to help pay for the programs that will help their children live out those dreams," said Minister Shea.
"The children's arts tax credit is a step on the road to instilling in our children a love for the arts. I'm pleased that this credit will help families from Victoria enroll their kids in great local arts development programs," added Minister Shea.
"Studies have shown that arts education help youth develop skills in critical thinking. This will be increasingly important as Canada develops its creative economy" added John Tupper, Director of the Art Gallery of Greater Victoria.
In addition to fitness programs covered by the children's fitness tax credit, parents can now claim money spent on programs that focus on fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture, tutoring, and more. When parents claim the children's arts tax credit-up to a maximum of $500 of the cost of programs-they save as much as $75 at tax time per child claimed.
To find out if your child's program is eligible for the children's arts tax credit, go to www.cra.gc.ca/artscredit.
Employers: Expect Canada Pension Plan changes in January 2012
Did you know...?
Changes to the way employers deduct Canada Pension Plan (CPP) contributions are coming into effect in January 2012.
Important facts for employers
- Starting January 1, 2012, you must deduct CPP contributions for all employees aged 60 to 65-even if the employee is receiving a CPP or Quebec Pension Plan (QPP) retirement pension and did not contribute previously.
- You must also deduct CPP contributions for all employees who are 65 to 70 years of age unless they elect not to contribute to the CPP by giving you a signed and completed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. They must also send the original to the Canada Revenue Agency (CRA).
- Your employees cannot contribute to the CPP after the month in which they turn 70 years of age.
Notes:
The CRA can assess you for failing to deduct CPP contributions or for failing to remit CPP contributions to the CRA as required. The assessment may include penalty and interest charges. For more information, go to www.cra.gc.ca/payroll and select "Penalties, interest, and other consequences."
Employees working in Quebec and other workers not subject to the CPP will not be affected by these changes.
Get more information
For more information about what the changes will mean for employers, go to www.cra.gc.ca/cppchanges-employers.
Important dates for RRSP, RRIF, HBP, LLP and RDSP
RRSP
February 29, 2012, is the deadline for contributing to an RRSP for the 2011 tax year.
December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP. For more information, see RRSP options when you turn 71.
RDSP
The deadline for opening an RDSP, making contributions and applying for the matching Grant and the income-tested Bond for the 2011 contribution year is December 31, 2011.
Home Buyer's Plan
You have to buy or build the qualifying home before October 1 of the year after the year of withdrawal. For more information, see Conditions for participating in the HBP.
Lifelong Learning Plan
The student must have received a written offer to enroll before March of the year after you withdraw funds from your RRSPs.