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CRA Tax Help: Brand-New $500 Digital News Credit!

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2020 has been a devastating year so far. The generations before ours had the Spanish Flu, and we have the novel coronavirus. While we thought the world today would be safer against viral disease compared to 1918, there is still more to nature than we can hope to master.

As you keep up with any news of developments with the COVID-19 pandemic and other situations around the world, you should know that there is a chance you can qualify for a new tax credit. If you are getting your news from a paid news subscription, you can receive the digital news subscription tax credit (DNSTC) from the Canada Revenue Agency (CRA).

The latest tax credit

Canada has extensive taxes that citizens need to pay, and the progressive tax system is based on the level of income you have. The government also allows plenty of tax deductions and credits that you can leverage to lower the amount you are liable to pay. Once in a while, the CRA rolls out new tax credits and deductions.

The DNSTC is one of the latest tax credits introduced by the government. A part of the journalism tax measure, this tax credit is there to support digital news media organizations operating in the country. The CRA plans to use the tax credit to help these organizations achieve better financial stability. A taxpayer who subscribes to these services can claim a tax credit for eligible digital news subscriptions in a tax year.

The government introduced this 15% tax credit into the budget in 2019. It is a non-refundable tax credit, and it pertains to amounts paid by Canadians to Qualified Canadian Journalism Organizations. (QCJOs).

You can claim this tax break on your income tax returns for income years 2020 to 2024. The maximum credit you can get is calculated by the lowest personal income tax rate (15%) with the overall amount you pay for the subscriptions. The maximum credit you can secure is on an amount of $500. It means you get a $75 tax credit at best.

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Leverage the tax credit and the news

Saving $75 on your income tax may not seem much, but every penny you save is a penny earned. Make sure you take advantage of the tax credit by subscribing to the content of QCJO news outlets. Besides the tax credit, you can use subscriptions to stay updated on the latest market movements to inform your investing decisions in the stock market.

For instance, BlackBerry (TSX:BB)(NYSE:BB) has become a significant tech stock to consider right now. While most of the conversation in the tech world is about Shopify, BB is a stock that could make an excellent buy right now.

A report filed by Frost & Sullivan in June 2020 concluded that the $3.48 billion market capitalization intelligent security software provider can help secure Internet of Things (IoT) endpoints and almost all of the cyber threats that exist right now.

Tech investors will love this news. The positive report about the long-forgotten BB indicates that it is in for a massive boost. The stock is down by almost 26% from the beginning of 2020. Trading for $6.27 at writing, the stock has the potential for substantial growth. The demand for more secure software is increasing. With cyber-attacks being a constant threat in the business world, organizations would love to procure services to help protect company data.

Analysts predict that the stock can climb as high as 113.7% in the next 12 months.

Foolish takeaway

News outlets are struggling due to decreased advertisement revenue. Subscribing to QCJO subscriptions will help news outlets transition to the digital realm and keep them from going under. Simultaneously, it will give you the chance to get the news that can prove beneficial for making wiser investment decisions.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends BlackBerry and BlackBerry.

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