Budget 2018: Personal Income Tax Measures, Part 1

by in Canadian Government News and Updates
Budget 2018: Personal Income Tax Measures, Part 1
Last week, we looked at the Business Income Tax Measures proposed in Budget 2018. This week, we’ll focus on the Personal Income Tax Measures starting with the proposals on the Working Income Tax Benefit and the Medical Expense Tax Credit.

Enhancement of the Canada Workers Benefit: The Working Income Tax Benefit is a refundable tax credit that supplements the earnings of low-income workers. Budget 2018 proposes to rename the program to the Canada Workers Benefit. Also, Budget 2018 proposes that for 2019, the amount of the benefit be equal to 26% of each dollar of earned income in excess of $3,000 to a maximum benefit of $1,355 for single individuals without dependents and $2,335 for families (couples and single parents). This measure will apply to 2019 and subsequent tax years.

Medical Expense Tax Credit: The Medical Expense Tax Credit or METC is a 15% non-refundable tax credit that recognizes the effect of above-average medical and disability-related expenses on an individual’s ability to pay tax. Budget 2018 proposes to expand the METC to recognize such expenses where they are incurred in respect of an animal specially trained to perform tasks for a patient with a severe mental impairment in order to assist them in coping with their impairment (e.g. a psychiatric service dog trained to assist with post-traumatic stress disorder). This measure will apply in respect of eligible expenses incurred after 2017.

There are a few more personal income tax measures that we will look into on our next blog so please check back soon!

Source: https://www.budget.gc.ca/2018/docs/tm-mf/tax-measures-mesures-fiscales-2018-en.pdf
Rate this blog entry:
KD PROFESSIONAL is a group of interconnected companies offering a wide range of financial, accounting and tax services to individuals and businesses across Canada.

Through our experienced staff and strategic alliances, we provide exemplary service and solutions to maximize your cash flow, while preserving Wealth.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Wednesday, 23 January 2019

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5


Read our Tweets