New tax credits for 2020 and 2021: Do you qualify?

Looking for a way to boost your refund or lower the amount of taxes you owe? Whether you’re claiming them on your 2020 return or planning ahead for 2021, here are 5 new federal and provincial tax credits that you’ll want to know about:

• The Canada training credit
• The digital news subscription tax credit
• The BC recovery benefit
• The Saskatchewan home renovation tax credit
• The Ontario home safety tax credit
• Alberta Working Parents Benefit
• Alberta Critical Workers Benefit

1. Canada Training Credit

The Canada training credit is a new federal tax credit for students! This credit will be available if you paid eligible tuition and other fees for courses you took during the year. Keep in mind, this credit reduces the tuition tax credit you can claim, transfer, or carry-forward.

Am I eligible?

You can claim this credit on your 2020 return if you’re a Canadian resident who paid tuition or fees to an eligible post-secondary school in Canada.

How much can I claim?

The amount you can claim for this credit will be the least of the following amounts:

• Your Canada training credit limit for the tax year; or
• Half of the eligible tuition and fees you paid to an eligible educational institution.

You earn $250 towards your Canada training limit for each year you report at least $10,000 of income on your tax return, up to a lifetime maximum of $10,000 in credit. The first $250, which you can claim in 2020, is based on the income you reported on your 2019 return. Check out the H&R Block Online Help Centre to find out if you’ve started accumulating your Canada training limit.

2. Digital News Subscription Tax Credit

Do you pay for online access to a newspaper? The digital news subscription tax credit is a federal tax credit that lets you claim what you pay for digital news subscriptions between 2020 and 2024.

Is my subscription eligible for the tax credit?

To claim this credit, your subscription must give you access to digital content that was first offered as written news. For example, you could claim this tax credit for the online version of a newspaper or magazine. It must also be considered a qualified Canadian journalism organization (QCJO).

How much can I claim?

This is a non-refundable tax credit, meaning it lowers the total taxes you owe when you file your return. Your credit is based on the lowest personal income tax rate (which is 15% in 2020), multiplied by the amount you paid for your subscriptions, up to a total of $500. For example, if you paid $500 for your digital news subscriptions, then you’re eligible for $75 as a tax credit.

If you share the contract for your subscription with your spouse or common-law partner, and they want to apply for this credit too, you’ll have to divide the amount you want to claim between you. To get a higher tax credit, the person with the higher income should claim the full amount you paid for your subscriptions on their return!

3. BC Recovery Benefit

The BC Recovery Benefit is a one-time, tax-free payment for families, single parents, and individuals. This benefit isn’t claimed on your return, but your eligibility depends on your tax situation.

Am I eligible?

To be eligible for the BC Recovery Benefit, you must be a resident of British Columbia who’s at least 19 years old. If you’re younger than 19 but you’re a single parent or you have a spouse/common-law partner, you can claim this benefit, too.

You also need to have filed a 2019 return to be eligible for this benefit, because the income you reported to the CRA will determine how much you can claim. If you’re new to Canada, you’ll be asked to provide details about the income you earned in 2019 instead.

Learn more about determining your eligibility for the BC Recovery Benefit.

How much can I claim?

If you’re a family (someone with a spouse or common-law partner) or a single parent (someone who’s the primary caregiver of at least one child), you can receive up to $1000 as long as your net income was less than $125,000 in 2019.

If you’re an individual, you can receive up to $500 if your net income was less than $62,500 in 2019.

Low-income seniors and taxpayers who are on income or disability assistance will receive an extra $150/month between January and March 2021.

How do I apply?

You can apply for the BC Recovery Benefit online, over the phone, or in-person at a Service BC Location until June 30, 2021. You should only submit one application for each family.

You’ll need to have the following documents ready before you apply:

• Your social insurance number;
• Your banking information;
• Your B.C. driver’s license (if you have one); and
• Your 2019 Notice of Assessment or Reassessment.

4. Saskatchewan Home Renovation Tax Credit

Are you re-shingling your roof this year? Or maybe you’re planning to build a new deck in your backyard? Whatever you have in mind, the Saskatchewan Home Renovation Tax Credit is designed to make the improvements you need for your home more affordable.

You can claim expenses for home renovations that began in October 2020 on your 2021 tax return.

How much can I claim?

The maximum amount you can claim for your home renovation expenses is:

• $11,000 for expenses between October 1, 2020 and December 31, 2021; and
• $9,000 for expenses between January 1 and December 31, 2022.

This is a non-refundable tax credit, meaning it lowers the total taxes you owe when you file your return. The maximum credit you can claim is $2,100. This amount can be split amongst the members of your household – to get a higher tax credit, the person with the higher income should claim the full amount of your expenses on their return!

What are eligible renovations?

You can claim expenses such as the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits. For a full list of eligible expenses, visit the Saskatchewan Home Renovation Tax Credit page.

You can’t claim the following expenses:

• Furniture;
• Appliances (such as a fridge or stove);
• Audiovisual electronics (such as a computer, TV, or speakers);
• Hot tubs;
• Tools;
• Maintenance (such as furnace cleaning, pool cleaning, snow removal, or yard care); and
• Financing costs (such as interest payments) associated with your renovations.

Remember to keep your receipts in case the CRA asks to see them later.

5. Ontario Seniors’ Home Safety Tax Credit

If you’re planning renovations to make your home safer and more accessible in 2021, you might be able to claim the Seniors’ Home Safety Tax Credit on your 2021 return.

Am I eligible?

You can claim this credit if you’re a senior (over 65 years old) or if you have senior relatives living with you.

To be eligible for this tax credit, renovations must be made to improve the safety and accessibility of a senior’s principal residence (the main house, apartment, trailer, or any other type of household where they live).

How much can I claim?

This refundable tax credit is worth 25% of the cost of your renovations. You can claim up to $10,000 for your expenses, meaning the highest refund you can get is $2,500.

What are examples of eligible renovations?

You can claim expenses such as:

• Adding grab bars and other reinforcements around the toilet, bathtub, and shower;
• Installing wheelchair ramps, stair lifts, or an elevator;
• Updating to non-slip flooring; and/or
• Any renovations needed to allow a senior to live on the first floor of their home.

Remember to keep your receipts in case the CRA asks to see them later.

6. Alberta Working Parents Benefit

This is a one-time, tax-free payment for families who paid for childcare so that they could continue working during the pandemic and whose annual household income is less than $100,000.

How much can I claim?

If you meet the eligibility requirements for this benefit, you can claim $561 per child.

The amount you receive for the Working Parents Benefit will lower the amount you can claim for childcare expenses on your 2020 return. However, you’ll still be better off applying for this benefit. Claiming your childcare expenses will only lower the taxes you owe, whereas claiming this benefit will mean putting money in your pocket. If you’ve already filed your 2020 return but want to apply for this benefit, you’ll need to request a change to your return.

How do I apply?

To apply, visit the provincial government website. Depending on where you live, applications open between March 1 and March 6, 2021. All applications will be open until March 31, 2021. Keep in mind, if you also received COVID-19 relief benefits or EI benefits, you won’t be eligible for this benefit.

7. Alberta Critical Workers Benefit

This is a one-time payment of $1,200 for critical workers in Alberta.

Am I eligible?

To be eligible for this benefit:

• You must work in public healthcare, social services, or education; or
• You must be a private sector worker who delivers critical basic services to Albertans (such as grocery clerks, security staff, or delivery drivers), and you must
  • earn $25/hour or less,
  • have worked at least 300 hours between October 12, 2020 and January 31, 2021, and
  • be located and working in Alberta.

For a full list of eligible and ineligible workers, visit the provincial government website.

How do I apply?

If you work in the public sector, you don’t need to apply for this benefit. Critical workers who work in public healthcare, social services, or education will receive this payment automatically.

If you work in the private sector or if you’re an eligible worker in a First Nations community, your employer must apply for this benefit on your behalf by March 19, 2021. To apply, visit the provincial government website.

These support payments will be subject to payroll deductions (including tax and EI deductions) if you receive them. You’ll find this amount included with your regular salary on your T4 slip. You’ll need to report this amount when you prepare and file your return.

Keep in mind that these support payments will be included in your income for 2020, so they might make your total income higher than last year. This means you could find yourself in a different tax bracket and you could have to pay more tax this year than you did last year.

Want to find out what other tax credits you might be eligible for? H&R Block makes sure you get the maximum refund. Choose from four convenient ways to file: File in an Office, Drop-off at an Office, Upload from Home, or Do It Yourself Tax Software