OTTAWA – Ottawa artist Eryn O’Neill is encouraged by a promise in the federal budget that would mean creators, musicians and writers who earn income from original and creative artistic works wouldn’t have to pay tax on up to $45,000 of it.
“It would help quite a bit because the consistency of sales can be unpredictable, so at this point in my career it would be a huge help for me,” O’Neill said of the Canada Creative Credit.
She said she and other artists have been trying to figure out how it will all work.
“It’s how the eligibility will be played out for artists and what it will mean and what the qualifications will mean,” she said. “I think that’s the most unknown for me right now.”
The federal budget unveiled last week also includes measures aimed at reducing paperwork.
“The budget is full of these little tweaks to make life easier for individuals that have to deal with the tax system,” said Ryan Minor with CPA Canada.
One example he shared is that, if passed, Canadians will have the option of claiming flat amounts for certain deductions like moving expenses, the Home Accessibility Tax Credit and gluten-free food.
“Rather than collecting all your receipts and itemizing and claiming the moving expense deduction based on receipts, you’ll get the optional ability to claim $1,000 flat rate, Minor said. “There’s quite a few of them in the budget.”
Caregivers could also receive up to $1,260 even if they don’t owe income tax.
Canadians would also no longer have to convert their Registered Retirement Savings Plans and Registered Retirement Income Funds when they turn 71.
Some economists say the tax changes may reduce paperwork, but not necessarily overall costs.
“That’s not going to boost your income any and it’s probably not going to reduce your costs any in terms of tax filing, especially if you’re going to a place like H&R Block, they’re probably not lowering their fees just because they don’t need as much paperwork in order to submit taxes on your behalf,” said Moshe Lander, a senior lecturer in economics at Concordia University.
“Ten hours saved does have some dollar amount in which you should be thinking of this as saving, but I don’t think that alleviates any cost-of-living affordability issues.”
The budget also includes a plan to consolidate all tax deadlines into one: May 15.
Previously, most Canadians had until April 30 to file their taxes, while those who were self-employed had until June 15.
