Take Advantage Of The Latest Tax Cuts

By Prince George - Peace River M.P. Jay Hill

Friday, February 26, 2010 03:45 AM

It’s that time of year again. Canadians will be receiving their income slips (for example, T4, T4A, T5, etc.) by the end of February so that they can prepare to file
their income tax returns to the Canada Revenue Agency. This year, there are even more tax breaks available to help reduce your tax owing or get a tax refund.

These are just the latest tax credits and deductions that our Conservative Government has implemented since taking office in 2006. In last year’s federal budget, Canada’s Economic Action Plan, we provided more than $20-billion in new tax relief for Canadian individuals and businesses.

Here are just some of the new ways in which you can take advantage of tax savings on your 2009 income tax return:
Basic Person Amount (line 300) – This deduction has been increased to $10,320. The top of the two lowest income tax brackets have also been increased by 7.5% above their 2008 levels, meaning Canadians can earn more income before paying federal income tax or be subject to a higher tax rate.

Age Amount (line 301) – The maximum amount those 65 and older can claim has increased by $1,000 to $6,408.

Spouse or common-law partner amount (line 303) – This maximum amount has increased to $10,320.

Amount for an eligible dependent (line 305) – The maximum amount you can claim for dependents has increased to $10,320.

Apprenticeship completion grant (line 130) – This new $2,000 taxable cash grant is available to registered apprentices who successfully completed their apprenticeship training and obtained journeyperson certification in a designated Red Seal trade.

Home renovation expenses (line 368) - For 2009 only, you can claim eligible expenses incurred for home renovation work performed or goods acquired after January 27, 2009, and before February 1, 2010. This temporary measure to help stimulate the economy will provide up to $1,350 in tax relief for an estimated 4.6 million Canadian families.

First-time Home buyers’ Tax Credit (line 369) – First-time home buyers who purchased a home after January 27, 2009 could receive a tax credit of $750.

Home Buyers’ Plan (HBP) - The maximum amount you can withdraw from a Registered Retirement Savings Plan (RRSP) under the HBP has increased to $25,000.

Registered disability savings plan (RDSP) (line 125 and 232) - The deadline for opening an RDSP, making contributions, and applying for the matching grant and the income-tested bond for 2008 was extended from December 31, 2008, to March 2, 2009.

Computer Capital Cost Allowance (CCA) – Small business owners can claim against their income the entire cost of a new computer through a new, temporary 100% capital cost rate for computers purchased after January 27, 2009 and before February 1, 2011.

Small Business Tax Rate - The amount of small business income eligible for the reduced federal tax rate of 11% has increased from $400,000 to $500,000 as of
January 1, 2009.

Don’t forget to file your income tax return by April 30, 2010. For more information regarding your 2009 tax return, go to www.cra.gc.ca.