Federal budget proposes tax break for artists, simpler filing for all

OTTAWA · The federal budget proposes a new tax credit that would exempt up to $45,000 of income for creators from taxation. Ottawa artist Eryn O'Neill said the Canada Creative Credit would be a significant help given the unpredictable nature of art sales. "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. She added that artists are still seeking clarity on how the eligibility rules will work in practice.

Other measures in the budget aim to simplify the tax filing process for many Canadians. Ryan Minor with CPA Canada said the document contains several tweaks designed to ease the burden on individuals. One proposal would allow people to claim flat amounts for specific deductions instead of saving receipts. "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.

The budget also proposes a single tax filing deadline of May 15 for all Canadians, replacing the previous April 30 date for most and a June 15 date for the self-employed. Another change would end the requirement to convert Registered Retirement Savings Plans and Registered Retirement Income Funds at age 71. A separate measure would provide caregivers with a credit of up to $1,260, even if they owe no income tax. Some economists caution that while the changes may reduce paperwork, they are unlikely to lower overall costs for taxpayers. Moshe Lander, a senior lecturer in economics at Concordia University, said tax preparers are not likely to reduce their fees simply because less documentation is needed. "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," Lander said.

With files from BNN Bloomberg