BS - Sunday, November 18, 1984 - North Shore News FOR A BETTER RETURN Tax changes for 1984 WHEN YOU receive your 1984 income tax return, you’re going to notice a few changes, the most striking of which will be the omission of the stan- dard $100 deduction for medical expenses. This deduction, which has helped people reduce their taxable income for over 20 years, was claimed by more than 11 million people in 1983. It was an automatic deduction which required no receipts to validate it. This year, instead of the $100 deduction, to make a deduction for medical ex- penses you will have to have receipts which add up to more than three per cent of your net income for 1984. Any expenses totaling below this percentage of your in- come are not claimable. The medical expenses you can add up to claim _ this deduction include doctor’s bills not covered by a medical plan, prescmption drugs, and money spent on prescription eyeglasses. Dentist’s and or- thodontist’s bills also qualify, so long as they were not paid for by a dental! plan and were not for purely cosmetic work. You can also include medical expenses incurred for any child whose “"** incomeis low enough that he or she can be claimed as a dependant. (Its not worth trying to claim medical expenses of a child whose net income exceeds the maximum allowed To do so, you Must pay, in taxes, an amount equal to the amount by which your child's net in come exceeds the maximum, over and above vour usual lares ) You can, however, add in anv of yvour spouse's medical expenses, ne whial Matter VOUT SPOUSES TCOmE IS And if CRPENses yout don't total medical add up te Cash management a By LISA SMEDMAN more than three per cent of your net income, you can still claim a deduction for any money given to. charity, whether receipts are in your fhame or yous spouse’s name. So save all your charitable donation receipts, no matter how small. Another change you will notice is the addition of a B.C. ‘thealth maintenance”’ surtax. This eight per cent surtax was introduced in pro- vincial legislation early in 1984, but only became effec- trve as of July 1. So for this year, you will only be taxed for half a year, or four per cent. The tax ts calculated as a percentage of the amount of provincial tax owed. For example, a person with a taxable income of $12,000 for 1984 would pay: $2,007.68 in basic federal tax (minus a federal tax reduc- tron): $883.37 in provincial tax; and a B.C. surtax of $35 34 In 1985, however, assuming the same taxable in- come, this person will have to pay the full eight per cent sur- tax, or $70.67 A B.C. Treasury Board staff member in Victoria said that the surtax has been brought in to help” offset what he describes as ‘‘federal underfunding’? of BC's medical services plan He said it would raise about $85 milfhon this year, and bet ween $160 and $170 milhon ina full year Currently, he said, federal government the pays 3 per cent of the cost of the plan. Using the B.C. surtax, this amount can be upped to 45.6 per cent, allowing the provincial government to reduce its portion of medical plan funding. Another change to keep an eye out for has not yet passed as legislation, but it could well be made law before the end of 1984. It has to do with what constitutes allowable moving expenses. In 1983, to deduct moving expenses from income earned at a new location, you had to be working or be a full-time student prior to your move. This is still the case in 1984, but there is a possibility that this provision will be drop- ped, allowing people who are unemployed or on welfare to deduct expenses incurred in a move to start work in a new location. ‘It’s a reflection of what’s going on in Canada now,”’ said Susan Bernanose, a public relations employee with Revenue Canada. There will also be some minor changes to the tax form that shouldn’t suprise anyone, because they are made each year. The basic personal exemption, which 1s deducted from your net in- come, has increased by $190 to $3,960. The marmed exemption has also risen, by $170, to $3,470 A spouse’s maximum net 1n- come, however (used in calculating your married ex- emption) has dropped from $570 to $490 The exemption tor wholly dependent children 17 and under remains the same, at $710 But) ther maximum allowable net income to claim this has sen by $90 to $2,840 And the exemption for children 18% and over has risen by $60 to $1,360) These must for survival Sonal businesses that sut sive and prosper throupty ttre LOSS well her see tes SCbertip cash miabagemment and ty te moti x tous a ahageatele coor ges tar tit ls debt prosttrerts forte asts Whe Dsude prcnicdeust oof thre bark of Montreal oa res fiast assure The Review ood faor Business Keview too toe qourtolist: Hibe perder beastie ss preeopete Tey thre Eharik sie tienes wove adt rs writlle ss bey Cet abrarn ‘ crnitierip byway abs srtae NSetaaee ne oe ee Oe ee Oe N Mamas itne Ls repebeatns de xc tates pach oat cobtiaet fear Fir ctu frost issive beabtieaee tae tit ae thee ca bt atriais Seats tl vbr abe ey Sweeting theese rive gee rrebe rel beasiee ss prcerp ire a re | revi be prositycety tee ds abroad Me Nee trtpset Yirwr cecseutapebeorvarre nat ver Mew t they sbere st Fates tre Nays an Poe wevee whe Cer aryecaie prooeblenias ut thes swt bye eges atted wore ts swat solving these The Review gives a mvuiiber of tipsousefubl to business peo ple ott ports oun that effes five Man ARCINCEE Of aceoiils receivable alone Can make on break a small Comprar lt fists control of tiventorsy acl the meed to stay flexrtehe as A APO Pr rorilies The ftiest: Gistrabuatien of lode pendent Business Review will fee ntvacde Cbrrertigeby coaad mowty formed network of GH Commerc val Bark (rats says Dale Pathe bP oxciutive Nice President of the Bank s Coatacdtan Commerc tal thank aw Cate age the € BLS han Ale the summer ial banking requarrements of our iadepen sdeuat business . fieniis pore svete us wath a tecrsdt re cae orbatreotr Las Apypreoninatedy Ps CMO will be distributed ta cartee nyt oo brents aod Mi prearspres live 2 a SEOUNEES Parkes Nabys Subsequent issucs will deal with the Chow tos oof titan cial management and ptos ide regular features on tax Copan s and people management in addition. new Bank services and product oitigtives wall be tetrodaced a the patel Phorte 8 praawes Paal R.R. Stanmore SIRARCIAL PLARNER 925-3141 children can earn a total net income of $2,600 before af- fecting the exemption, an in- crease of $30 from 1983's maximum. In summary, while you can claim higher exemptions in 1984 for both your spouse and children, your spouse must earn less than last year, while your children can earn more. NEWS Classifieds Dial-a-deal. . : OEF Gh ra FINANCIAL SERVICES & RETIREMENT PLANNING Bert Wichham Avis Lapham FIIC.CLU ATO Your one-stop financial service centre for: e Annuities, RRSPs, Term Deposits e Retirement Income Funds (RRIF's) * Canada Savings Bonds Bert Wickham & Associates Ltd. Suite 29, 659 Clyde Ave.. 925-3 101 Park Roval, W.Van ATTENTION STOVE OIL USERS ¢ Do you have difficulty getting Regular Deliveries? Are you looking for good Rehable Service? Are you seeking a (lean Sweeter smelhng product? If your answer to any of these Questions is rt Ne) CALL 873-6721 M. HERBACK & SON DISTR. INC. 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