With the new year here, many are starting to think of tax season which is just around the corner. This year, with the uncertain financial standing Canada and the world, is in with COVID-19 still breathing down our throats, it is helpful to hear of tax credits being offered by the government.
Recently, Deputy Premier and Finance minister Donna Harpauer came forward with a few tax credits the Sask Party is offering, “We are pleased to resume the indexation of income tax brackets and tax credit amounts in 2021….. Indexation protects Saskatchewan taxpayers from bracket creep, and helps keep the tax system fair, competitive and affordable.” All Saskatchewan income tax brackets and tax credit amounts will once again be indexed in 2021, this will save taxpayers an estimated $15 million. The level of indexation in 2021 will be 1.0 percent, matching the national rate of inflation. “Restarting the Active Families Benefit to make children’s activities more affordable was a key election commitment of our government,” Harpauer said. “As promised, the Active Families Benefit will provide a non-refundable tax credit of $150 per year per child to eligible families. Families of children with a disability will receive an additional $50, for a total tax credit of $200 per year per child.” Families with children enrolled in sports, arts and cultural activities will also be able to claim the Active Families Benefit once again on their 2021 taxes, the restarting of the Active Families Benefit will be part of the 2021-22 Budget which will be retroactive to January 1, 2021. Parents who enroll their children in sports, arts and cultural activities in the new year are therefore reminded to keep their receipts so they may claim the benefit with their 2021 tax filings. Saskatchewan residents who are planning to renovate their homes may also be able to claim the recently announced Saskatchewan Home Renovation Tax Credit. Under this non-refundable tax credit, Saskatchewan homeowners can save up to $1,155 in provincial income tax in 2021 if they claim a 10.5 percent tax credit on up to $11,000 of eligible home renovation expenses incurred between October 1, 2020, and December 31, 2021. A further $945 in savings may be claimed in 2022 in respect of eligible expenses incurred between January 1, 2022, and December 31, 2022. Eligible expenses include the cost of permits, contractor labour and professional services, building materials, fixtures, and equipment rentals. Tax Credits are always helpful to see as tax season approaches. It is always a good idea to check with your local accountant, or better yet hire a local account, as they are always on top of any tax credit you may be eligible for.
Gary Horseman, Local Journalism Initiative Reporter, Four-Town Journal