Saskatchewan Exempts the RDSP

Exciting news!  Yet another province has decided to exempt the RDSP from affecting Disability Benefits.  Saskatchewan put out a news release earlier today from the Ministry of Social Services indicating that the RDSP will not affect the calculations for those receiving social assistance, exempting both the RDSP as an asset and income.

In a statement found in the news release the Minister of Social Services for Saskatchewan Donna Harpauer is quoted as saying, “the exemption of RDSP assets and income from social assistance calculations makes sense for a number of reasons. Most importantly, it will encourage individuals with disabilities and parents of children with disabilities to create RDSPs without having to worry that the assets will be clawed back when withdrawals are made on behalf of the beneficiaries.”

This a a very exciting development for people in Saskatchewan as it now means they, along with BC, Newfoundland, and Yukon, can fully utilize the benefits that the RDSP provides.  The Saskatchewan Government has shown progressive and forward-thinking leadership in this move to exempt the RDSP and should be commended for this exemption of the RDSP.

If you would like to view the official news release as found on the Government of Saskatchewan’s website you can visit http://www.gov.sk.ca/news?newsId=ff7d6467-8e61-4579-8319-651bb0f3b5a7

As well, you can read the Leader-Post (Regina) article written by Pamela Cowan that does a good job of explaining the importance of this move for Saskatchewan.  You can view this article at http://www.canada.com/reginaleaderpost/news/story.html?id=d22ce6ce-3821-4b10-a130-1773ead35f1b

Provincial/Territorial Update – Keeping Track of Your Province/Territory

Currently BC, Alberta, Newfoundland, Saskatchewan, Manitoba, Ontario, Nova Scotia, NWT and Yukon have exempted the RDSP as an asset and/or income. Quebec and New Brunswick have exempted the RDSP as an asset but are capping the amount of income that you are allowed to withdraw from the plan (QB $305 exempt monhtly and NB $800 exempt monthly). Prince Edward Island has announced that they will exempt the RDSP as an asset and income up until the low income threshold (see www.rdsp.com for more details), and Nunavut has currently not indicated how they will treat the RDSP.

We will be updating this blog consistently and letting you know as soon as the provinces announce their intentions.

Saskatchewan Budget Announces Increase in Disability-related Tax Credits

For anyone living in Saskatchewan, the recent Provincial Budget that was released last Wednesday has outlined the Government’s commitment to drastically increase the amount provided for four of the Disability-related tax credits. We are very pleased to see that the Saskatchewan Government has decided to take this step in increasing the Caregiver Tax Credit, the Infirm Dependent Tax Credit, the Disability Supplement Tax Credit, and the Disability Amount for Self Tax Credit.

This will positively impact individuals with severe disabilities and those who care for elderly or disabled relatives when they file their next year’s tax return. According to the Budget the Government has committed to doubling the Caregiver Tax Credit (from $4,095 to $8,190), doubling the Infirm Dependent Tax Credit (from $4,095 to $8,190), doubling the Disability Supplement Tax Credit (from $4,095 to $8,190), and increasing the Disability Amount for Self Tax Credit (from $7,021 to $8,190).

As well, they have committed to making enhancements to many of the programs available for people with intellectual disabilities, including day programming, housing supports, and support initiatives.

This will hopefully encourage more people to file a tax return for themselves or for their loved one with a disability. Many people who do not have an income are simply not filing a return and are therefore missing out on a large amount of money that they are entitled too.

If you would like to read the Saskatchewan Budget Summary, you can go to the following website: http://www.finance.gov.sk.ca/budget/