With tax season just around the corner, the provincial government is highlighting some of the tax credits and measures it is offering this year.
“We are pleased to resume the indexation of income tax brackets and tax credit amounts in 2021," said Donna Harpauer, the provincial finance minister. “Indexation protects Saskatchewan taxpayers from bracket creep, and helps keep the tax system fair, competitive and affordable.”
The level of indexation in 2021 will be 1.0 percent, matching the national rate of inflation. The province expects it will save taxpayers an estimated $15 million.
“Restarting the Active Families Benefit to make children’s activities more affordable was a key election commitment of our government,” Harpauer said. “As promised, the Active Families Benefit will provide a non-refundable tax credit of $150 per year per child to eligible families. Families of children with a disability will receive an additional $50, for a total tax credit of $200 per year per child.”
Families with children enrolled in sports, arts and cultural activities will also be able to claim the Active Families Benefit once again on their 2021 taxes. The restarting of the Active Families Benefit will be part of the 2021-22 Budget which will be retroactive to January 1, 2021. Parents who enroll their children in sports, arts and cultural activities in the new year are therefore reminded by the province to keep their receipts so they may claim the benefit with their 2021 tax filings.
Saskatchewan residents who are planning to renovate their homes may also be able to claim the recently announced Saskatchewan Home Renovation Tax Credit. Under this non-refundable tax credit, Saskatchewan homeowners can save up to $1,155 in provincial income tax in 2021 if they claim a 10.5 per cent tax credit on up to $11,000 of eligible home renovation expenses incurred between Oct. 1, 2020, and Dec. 31, 2021. A further $945 in savings may be claimed in 2022 in respect of eligible expenses incurred between Jan. 1, 2022, and Dec. 31, 2022. Eligible expenses include the cost of permits, contractor labour and professional services, building materials, fixtures, and equipment rentals.