News & Publications
Changes to Employment Insurance for Parents
The 2018 federal budget changed Employment Insurance (EI) to let parents take extra time off. You’re eligible if your child was born or adopted on or after March 17, 2019. If you choose the standard parental leave, you could receive up to 40 weeks of parental benefits, up from 35 weeks. If you choose an extended parental leave, you could receive up to 69 weeks of parental benefits, up from 61 weeks.
Tax-Free Savings Account Contribution Limit Increased
Savers rejoice! At long last, the annual contribution limit on the Tax-Free Savings Account (TFSA) has been upped. In 2019, anyone who’s eligible to contribute to the TFSA can contribute up to $6,000 annually, up from $5,500 in 2018.
Canadian Tax Changes for 2019
Working Income Tax Benefit Renamed and Enhanced
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The Working Income Tax Benefit is a refundable tax credit that helps give tax relief to low-income individuals and families to encourage them to participate in the workforce. The Working Income Tax Benefit is being renamed the Canada Workers Benefit. But that’s not all. It will be enhanced beginning in 2019 and indexed (increased with inflation) thereafter. (Similar enhancements will be applied to the Canada Workers Benefit disability supplement.)
Under the Working Income Tax Benefit in 2018, single individuals without children were eligible for a maximum benefit of $1,059, while families were eligible for a maximum benefit of $1,922. Those maximum amounts are being increased under the Canada Workers Benefit in 2019 to $1,355 for individuals and $2,335 for families, respectively.
To make your tax filing life easier, the CRA will automatically determine if you’re eligible to receive the Canada Workers Benefit and assess your tax return as if you’ve already claimed it, even if you hadn’t on filing. If you’re an eligible couple making the claim, the CRA will designate the partner who is to receive the benefit.