Well, it is about that time again…..tax season! Some of us drop our receipts, T4’s and other information off to an accountant to figure out, while others wait in line at one of the various tax processing businesses to see how much we are getting back this year. For those who like to do their own taxes, there are a few changes this year that you might want to be aware of. This information comes courtesy of a Yahoo news report, so I’ll provide the link to the site at the end of this article if you’d like to read more.
Federal
• The new tax rates and income brackets as shown on Schedule 1 are as follows:

• The personal basic amount is increased to $9,600.
• The age amount is increased to $5,177.
• The spousal amount and the amount for an eligible dependant are increased to $9,600.
• The maximum amount for an infirm dependant age 18 or older is increased to $4,019 per dependant.
• The maximum eligible earnings for CPP/QPP purposes is $43,700. The rate respecting CPP/QPP contributions is 4.95%.
• The maximum amount of eligible earnings for employment insurance purposes is $40,000. The employment insurance rate is now 1.8%.
• The maximum amount of eligible adoption expenses is increased to $10,445.
• The pension income amount remains unchanged at $2,000.
• The maximum amount eligible for the calculation of the caregiver amount is $4,019 per dependant.
• The disability amount is increased to $6,890, and may be increased by a maximum supplement of $4,019 (workchart 316).
• The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $1,926.
• The maximum amount for the new Canada employment non-refundable tax credit is increased to $1,000.
• A new $2,000-per-child tax credit for children under 18.
• A new tax credit in respect of up to $500 in eligible fees for the enrolment of a child under the age of sixteen years in an eligible program of physical activity.
• The education amount for part-time studies and the textbook amount remain unchanged at $120 and $20 per month.
• The education amount for full-time studies and the textbook amount remain unchanged at $400 and $65 per month.
• The maximum amount for the refundable medical expenses supplement (line 452) has been increased to $1,022.
• Eligible dividends are taxable at 145% with a federal dividend tax credit of 18.9655%. Dividends other than eligible dividends are taxable at 125% with a federal dividend tax credit of 13.3333%.
If you are looking for some books to help you along with your filing, don’t forget that we keep many current offerings including:
101 Tax Secrets for Canadians, by Tim Cestnick
Tax Tips 2008 for Canadians for Dummies and
Evelyn Jacks essential tax facts : hundreds of quick and easy ways to improve your after-tax results during tax season and all year long by Evelyn Jacks.
Please feel free to reserve a book online or come into the library and ask to see our finance section. Hopefully, you’ll find a few good tips to pick up a little more in your refund!
(Article information copyright Dr. Tax-UFile.ca 2008)
http://ca.pfinance.yahoo.com/ca_finance_taxes/13/tax-changes-to-watch-for-on-your-2007-tax-return