Changing Taxes and Benefits For The Year 2020

The year 2020 is hours away so read on to find out what’s changing for taxes and benefits by revenue Canada for the new year.

Our goal is not only to provide you with professional taxation and bookkeeping services, but also to get you prepared for the new year with some good news.

Read on to find out which tax changes and benefits are taking effect in 2020.

• Federal and provincial income tax brackets are increasing.
• EI Premiums are decreasing from 1.62% to 1.58%.
• Maximum pensionable earnings are increasing to $58,700 in 2020.
• Employee and employer contribution rates are increasing by 5.25%.
• As was the case last year, the Canada Child Benefit will continue to be indexed to inflation.
• Canada Child Benefit: the maximum a parent can receive is $6,639 for children under age 6 and $5,602 for children age 6 to 17.
• The annual contribution limit on the Tax-Free Savings Account (TFSA) is going up by $6,000.
• The basic personal amount will increase by 15% over the next four years.
• Those earning more than $147,667 will have the basic personal amount reduced.
• Those earning more than $210,371 do not receive any tax breaks for the basic personal amount.
• In July of 2020, Old Age Security (OAS) is increasing by 10% for seniors older than 65 and earning less than $77,580.
• The survivor benefit of Canada Pension Plan (CPP) will increase to $58,700.
• Surviving spouses over 65 will be able to get 60% of their deceased spouse’s pension and see an increase of $2,080 annually.
• Spousal survivors between 60-64 years of age are eligible for 37.5%.
• Maternity or parental benefits received through EI will be tax-exempt.
• Adoptive parents will get 15-weeks leave if they receive EI benefits.
• The Canada Child Benefit will increase for new parents with kids under one years by 15%.
• Child Disability Benefit is expected to double with more than $2800 extra in the pockets of parents.

Enjoy The Coming Benefits of 2020

As you can see there’s a lot to be happy for during the following year but remember to speak to your personal accountant or tax manager to get the full scoop and have them explain the changes to you in person.