The Canadian government introduced the Digital News Subscription Tax Credit (DNSTC) from 2020 to 2024. This non-refundable tax credit supports Canadian digital news media organizations while encouraging Canadians to subscribe to eligible digital news services. Below are key details to help you take advantage of the DNSTC.
Who Can Claim
Individuals: Canadian residents who are at least 18 years old at the end of the tax year.
Eligible Subscriptions: Individuals must have subscribed to eligible digital news services (e.g., online newspapers or magazines providing original journalism) during the tax year.
Claim: Only the individual who entered into the agreement can claim the credit. If multiple individuals in the same household (e.g., spouses, roommates) share the subscription, the amount can be split, provided it does not exceed the maximum allowable claim.
How Much Can Be Claimed
Amount: Taxpayers can claim 15% of their eligible subscription costs, up to a maximum of $500 annually. This means the maximum tax credit is $75 per individual.
Example: If you paid $600 for your digital news subscriptions, you can claim up to $75 as the maximum tax credit. (500 x 15%) = $75.
Steps to Claim the DNSTC
Check Eligibility: Ensure you meet the eligibility criteria, including being a Canadian resident with a subscription to an eligible digital news service.
Gather Documentation: Keep records of your subscription payments, as these may be required during tax filing.
Complete Your Tax Return: Use forms like the T1 General and enter your eligible subscription expenses on Line 31350.
Claim the Credit: Refer to the latest CRA guidelines to calculate the eligible credit amount. Enter the total amount of eligible subscriptions on your tax return.
File Your Return: Submit your completed tax return by the deadline, ensuring all documentation is accurate and included.
Retain Records: Maintain subscription records for at least six years in case the CRA requests them later.
Tax Tip
If both spouses share the subscription, the higher-income earner should claim the credit to maximize the tax benefit.
Important Note
For the most current information, eligibility requirements, and a list of qualifying organizations, visit the CRA website: Canada Revenue Agency (CRA).
