Effective Jan 1, 2005 Nursing Home care changes

• all Medicare will pay for the health care portion of nursing home costs. Includes costs of nurses, licensed practical nurses, occupational therapists, physiotherapists and others employed at nursing homes.

• You only pay for your part of the cost out of your income. If you cannot meet this cost the province will pay the rest. No longer are you required to sell off your assets to pay nursing home costs.

• 15% of your income for your own use - a minimum of $150 each month.

My Account Online Service available on CCRA website

• Manage your own personal income tax, Child Tax Benefit and GST/HST credit accounts through a secure Website 7 days a week 21 hours a day.

• You can now see information such as tax refund or balance owing, RRSP, Home Buyers Plan, Lifelong Learning Plan, instalments, Child Tax Benefit and HST information as well as addresses and telephone numbers.

• To use My Account you are required to supply your social insurance number, your date of birth and as well as the amount you reported on line 150 (total income) of your 2003 income tax return.

• In 2005 you will be required to have an epass for all services available on any Government Website (includes CCRA website) which is on a secure channel.

• My Account was available in 2004 but additional features are coming in 2005 which include being able to change your income tax return (T1 Adjustment) and also file a notice of objection on line.  The T1-Adjustment will be processed within 7 to 10 business days instead of the long waits that we are experiencing now.

• Also coming in 2005 you will be able to change your address, view a copy of your income return, set up a preauthorized payment plan and authorize a representative.

CPP Pensionable earnings ceiling for 2005 up to $41,100.

• The basic exemption amount for 2005 remains at $3,500.

• The employer employee contribution rates remain at 4.95%.

• Self-employed contribution rate remains at 9.9%.

• Maximum employer-employee contribution for 2005 is $1,861.20 and self-employed is $3,722.40

Fairness Provisions

• Taxpayers have until December 31, 2004 to review their records and send in requests for adjustments under the fairness provisions for the 1985 to 1994 taxation years. In 2005 a request made will only include 1995 and subsequent taxation years.

• Fairness Provision is for extraordinary circumstances which include a disaster, error in a CRA publication, disruption in services such as a postal strike and financial hardship.

Canada Learning Bond (CLB) effective January 1, 2005

• Family incomes of  below $35,000 receive 40% grant on the first $500 and family incomes of $35,000 to 70,000 the grant will be 30% of the first $500 contribution.
   

• For every child born in 2004 or beyond $500 will be paid into an RESP for those who qualify based on low income levels. For those who remain in the qualifying bracket there will be an additional $100 paid each year for up to 15 years.