Tax Planning in 2015-2016

Below are a few tax changes and some tax numbers that affect Canadian individuals and businesses.

• Maximum RRSP contribution for 2016 is $25,370, and for 2015 is $24,930.
• TFSA limit: The annual limit for 2015 is $10.000, for a total of $41.000 in room available for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual TFSA limit for 2016 is $5,500, to be indexed to inflation in future years, bringing total room to $46,500.
• Medical expenses threshold: For the 2015 tax year, the maximum is 3% of net income or $2,208, whichever is less. For 2016, the threshold is the lesser of 3% or $2,237.
• Donation tax credits: after March 20, 2013, the first-time donor super credit is 25% for up to $1,000 in donations, for one tax year between 2013 and 2017.
• Age amount: You can claim this amount if you were 65 years of age or older on December 31 of the taxation year and, for 2015, if your income was below $82,353. The maximum amount anyone can claim is $7,033 in 2015, and $7,125 in 2016.
• OAS recovery threshold: If your net income exceeds $72,809 for income year 2015 (and $73,756 for 2016), you have to repay part of or the entire OAS pension.
• Children’s fitness tax credit: If your children played baseball, soccer, or participated in some other program of physical activity, you may be able to claim up to $1,000, per child, of the cost of these programs. You can claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid at least $100 in registration or memberships fees for an eligible program.