If you get your news from digital sources, you may be eligible to claim a tax credit when you file your taxes.
To help households navigate financial challenges while supporting Canadian journalists, the Government of Canada has introduced numerous tax benefits, including the Digital News Subscription Tax Credit (DNSTC). This tax break was implemented in 2019 to provide financial relief to Canadians.
Read what it is, how to claim it, and how much you’re entitled to.
Key Points You Should Know About The Digital News Subscription Tax Credit (DNSTC)
| What is it? | It is a non-refundable tax credit. |
| Who is eligible? | You can claim the credit if you have a digital subscription to a Qualified Canadian Journalism organization (QCJO). |
| When can you claim it? | This credit can only be claimed for subscription expenses paid from 2020 through 2024. |
| How much can you claim? | Up to $500 in expenses. |
| How do you claim it? | Fill out line 31350 on your tax return form |
What Is The Digital News Subscription Tax Credit?
The DNSTC is a non-refundable tax credit. It is offered to individuals who pay for digital news subscriptions to Qualified Canadian Journalism Organizations (QCJO). The credit is valid for subscription expenses paid from 2020 through 2024.
The purpose of the DNSTC is to encourage people to support Canadian digital news media organizations as they continue to face increasingly stiff competition from social media and alternative news websites.
How Do You Make A Claim For Digital News Subscription Tax Credit?
To claim the DNSTC, follow these steps:
Step 1. Determine If Your Subscription Qualifies
Your digital news subscription must be for a QCJO for you to be eligible for the DNSTC. You can confirm if the media organization is a QCJO by visiting the CRA’s website. The government maintains a list of those that qualify for the designation.
Any media outlet that wishes to be on this list must file Form T622, Digital News Subscription Tax Credit – Eligible Subscription with the CRA. However, some media organizations that offer qualifying subscriptions may not appear on the CRA’s list. They may have not yet had their application processed or have simply chosen not to submit Form T622.
In that case, you should contact the organization to confirm their status as a QCJO.
Step 2. Obtain Documentation
The QCJO you’ve entered into a subscription agreement with will issue you a receipt, which will contain its QCJO designation number. Be sure you keep all your receipts in case the CRA asks to see them.
Step 3. Select The Credit On Your Tax Return
When you file your taxes, you claim the DNSTC by filling out line 31350 on your tax return form. You can do so for each year you have qualifying subscription expenses during the period 2020 to 2024.
Which Digital News Subscriptions Qualify For This Tax Credit?
To claim the DNSTC on your income tax return, you must have paid your digital news subscription to a media organization designated as a QCJO. Only content delivered digitally is eligible for the tax credit; any non-digital content doesn’t qualify.
In cases where content is accessible in both print and digital formats, you can only claim the digital portion.
If the media organization you’ve subscribed to no longer qualifies as a QCJO, you can still claim the DNSTC. You’ll need to prove that you purchased your subscription prior to the organization losing its QCJO status. The CRA requires organizations to inform their subscribers if their subscriptions are no longer eligible for the credit.
How Much Can You Claim?
The maximum DNSTC you’re entitled to is calculated by multiplying 15% (the lowest personal tax rate) by your total qualifying subscription costs during the year, up to $500.
If you claim the maximum amount each year during the qualifying period (2020 – 2024), your total tax savings comes to $75 ($500 x 15%). Moreover, you can choose to split the DNSTC with your spouse or partner, as long as the total amount claimed doesn’t exceed the maximum of $500.
Looking For Other Tax Credits?
If you’re struggling to cover your expenses, there are a few other tax credits worth exploring. Some government benefits include social assistance programs, child assistance programs, senior assistance programs and other related benefit programs.
| Employment Insurance (EI) | Learn More |
| Canada Child Benefit (CCB) | Learn More |
| Maternity/Parental Leave | Learn More |
| Federal Disability Tax Credit | Learn More |
| Compassionate Care Benefits | Learn More |
| GST/HST Tax Credit | Learn More |
| Green Tax Credits | Learn More |
However, if you’re not eligible for any of these government benefits, you can get a personal loan to help cover your expenses. This can help spread the cost over a few months to a few years, making your monthly payments more affordable. Before you take out a loan, be sure to check your credit score, as this can affect your approval odds and the terms you qualify for.
Having said that, it’s also important to remember not to overextend yourself. If you’re already struggling with debt and are unable to qualify for a consolidation loan, you should consider speaking to a credit counsellor to help you find the right debt relief program for you.
Bottom Line
The DNSTC is not one of the most generous tax credits available, but it can help offset some of the subscription costs you’re paying for. The credit is also easy to claim, with no complicated forms to fill out. Plus, you can continue to support Canadian news organizations without having to worry so much about how much your subscriptions will cost you.
