General Income Tax and Benefit Guide - 1998

Archived

This page has been archived on the Web.

What's new for 1998?

We list the major changes below. For more details on changes, see the areas outlined by an indented double frame box in this guide.

Example

Tax centre - The tax centre that processes your return may have changed. You should keep a record of the address shown on your mail-in label or return envelope in case you want to ask for a change to your return.

1998 tax measures

This tax and benefit package includes the following income tax changes that have been announced, but were not law at the time of printing. If they become law as proposed, they will be effective for 1998, or as of the dates indicated.

Self-employed individuals (lines 135-143) - You may be able to claim a deduction against your business income for premiums you paid for coverage under a private health services plan, and for computer software and hardware purchased to deal with dates after December 31, 1999. In addition, there are changes that apply to most amounts you can claim for meals and entertainment that you provide employees after February 23, 1998. For details, see the guide that applies to your business.

Registered pension plan (RPP) deduction (line 207) and Registered retirement savings plan (RRSP) deduction (line 208) - You no longer have to include these amounts when finding out if you have to pay minimum tax. In addition, starting in 1999, you may be able to withdraw funds tax free from your RRSPs if you or your spouse participates in a continuing education program. For more information, get the guide called Lifelong Learning Plan (LLP).

Home Buyers' Plan - There are new rules about participating after 1998, if you have participated before, including rules about buying or building a home for someone (yourself or a relative) who qualifies for the disability amount (line 316). For more information, get the guide called Home Buyers' Plan (HBP) - For 1999 Participants.

Child care expenses (line 214) - The maximum amount you may be able to claim for each child has increased. In addition, you may be able to claim amounts paid to allow you or your spouse to go to school part time. For details, see Form T778, Child Care Expenses Deduction for 1998.

Moving expenses (line 219) - There are additional amounts you may be able to claim when you move. In addition, you may have to include in your income certain amounts relating to the move that you receive from your employer. See Form T1-M, Moving Expenses, for details.

Emergency volunteers - If you receive income from a government, municipality, or public authority for certain volunteer services, you may be able to reduce the amount you have to report by up to $1,000. See page 26 for details.

Personal amount supplement (line 307) - You may be able to claim this for yourself and either your spouse or a person described at line 305.

Caregiver amount (line 315) - If you cared for your or your spouse's parent or grandparent or an infirm dependant who lived with you, you may be able to claim this amount.

Disability amount (line 316) - After February 24, 1998, occupational therapists and psychologists can certify certain kinds of impairments.

Interest paid on student loans (line 319) - You can claim an amount for the interest paid in the year on certain student loans.

Tuition and education amounts (line 323) - The monthly education amount has been increased to $200 for individuals in full-time programs, including those attending part time because they are mentally or physically impaired. In addition, you can claim an education amount of $60 for each month in which you were studying in a qualifying part-time program.

Medical expenses (line 330) - You can claim amounts paid for you or a relative to learn to care for a relative who has a mental or physical infirmity and who is in your household or is dependent on you for support.

Federal individual surtax (line 419) - You may have less surtax to pay.

Date modified:

2002-12-06