Essential Tax Numbers For 2020

With a new year comes new tax numbers. You really want to take advantage of everything you can in regards to your hard-earned money. The more you can write off against your earnings and the more strategic you can be – means the more you get back, which also means the more likely you will end up potentially in a lower tax bracket paying fewer taxes the following year. You also want to be careful because if you earn too much in your retirement years you may not be eligible for certain income or the amount you are eligible for will decrease, like OAS. Below is a quick reference to important tax numbers for 2020. Make sure you take full advantage! 

RRSP Contribution Limit:
  •  2019: $26,500
  •  2020: $27,230

Learn about getting income out of your RRSPs here

TFSA Limit
  •  2019: $6,000
  •  2020: $6,000
Basic Personal Amount
  •  2019: $12,069
  •  2020: $12,298
OAS Recovery Threshold
  •  2019: $77,580
  •  2020: $79,054
Lifetime Capital Gains Exemption
  •  2019: $866,912
  •  2020: $883,334
Donation Tax Credits
  •  Between 2013-2017, the first-time donor super credit is 25% for up to $1,000 in donations for one tax year. This program is now expired and doesn’t apply to years after 2017.
Medical Expense Threshold
  •   2019: 3% of net income or $2,352, whichever is less
  •   2020: 3% of net income or $2,397, whichever is less
Home Buyers Amount
  •  Homebuyers may be able to claim up to $5,000 of the purchase cost.
Canada Child Benefit
  •  2019: $6,639 per child under six, $5,602 per child age 6-17
  •  2020: $6,765 per child under six, $5,708 per child age 6-17
Child Care Expense Deduction Limit
  • $8,000 for children under 7, $5,000 for children age 7-16, and $11,000 for children that are eligible for the disability tax credit
Canada Caregiver Credit
  • Caregivers who have a physically or mentally impaired dependent may be able to claim up to $2,182 in additional non-refundable tax credits

 

Bowie Can Help with Taxes! For great tax advice and services contact our Tax Team today at taxes@bowiecanhelp.com or click here to book an appointment!