02/12/2020

“Need to Know” tips for the 2019 tax year

Here are four general filing tips to help British Columbians get started on their income tax filings:

The amount of taxes you have to pay is based on your annual income. Be sure to check out your federal and provincial income tax rates before filing your income tax return. To reduce your taxes, check to see if you are eligible for any tax credits or tax deduction measures.

Tax RatesTax Brackets
Federal

15.00%

≤ $47,630

20.50%

$47,631 – $95,259

26.00%

$95,260 – $147,667

29.00%

$147,668 – $210,371

33.00%

≥ $210,372

British Columbia

5.06%

≤ $40,707

7.70%

$40,708 – $81,416

10.50%

$81,417 – $93,476

12.29%

$93,477 – $113,506

14.70%

$113,507 – $153,900

16.80%

≥ $153,901

The deadline for filing personal income tax returns and paying any taxes owing for the 2019 tax year is Thursday, April 30, 2020. However, if you are self-employed, the filing deadline for you (and your spouse or common-law partner) is Monday, June 15, 2020.

Be sure to pay any taxes owed on or before April 30 to avoid arrears interest charges. If you owe taxes and your return is late, you will be assessed a penalty and interest on the unpaid balance of taxes due.

If you were unable to use certain deductions or tax credits from a previous tax year, you might be able to use them for the 2019 tax year. Some common items include:

  1. How much income tax do I have to pay?
  2. What is the deadline for filing my personal income tax return?
  3. I have unused tax credits from my 2018 tax return, can I apply them in my tax return this year?
    • Charitable donations: unused charitable donation deductions may be carried forward five years;
    • Interest on student loans: unused student loan interest expenses may be carried forward five years; and
    • Home office expenses: excess undeducted home office expenses of an employee or a self-employed individual may be carried forward indefinitely and applied against income from the same office or employment, or from the same business.
  4. Can I transfer income tax credits to my spouse?
  5. You can transfer some income tax credits to your spouse or common-law partner. Transferable credits include the age credit, disability credit, pension income credit, and your own education and tuition fee credit. If you are able to reduce your taxes payable to zero without using all of your available credits, you might consider transferring some of these unused credits to your spouse’s return. Don’t let your credits go to waste.

 

Got questions?

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