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Tax Changes Becoming Effective January 1, 2020

As part of the federal tax changes which came into effect January 1, 2020, there is an increase in the basic personal which is being phased in over four years until it reaches $15,000 in 2023.

For 2020 the exemption amount increased to $13,229 from $12,069. The benefit is about $138. The benefit is reduced to zero for incomes above $214,368.

Canada Pension Plan premiums also go up by maximum of $97 for each employee.

Effective January 1, Canadian experiencing a marital breakup can qualify to withdraw money from their RRSP without incurring a tax penalty, to buy a home. The individual can make a withdrawal in the year the breakup occurs or in the four preceding calendar years by accessing the Home Buyers’ Plan, even if they are not a first-time homebuyer. The HBP allows a first time home buyer to withdraw up to $35,000 from an RRSP.

Lastly, if you subscribe up to $500 for your digital news subscriptions, you can apply for a $75 tax credit.

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