New Tax Credits

On December 9th, 2011, posted in: Uncategorized by admin

New Tax Credits

  • A $2,000 non-refundable Family Caregiver Tax Credit (worth $300) for caregivers or infirm dependants who are currently receive one of the following dependency-related credits: the Spousal or Common-Law Partner Credit, the Child Tax Credit, the Eligible Dependant Credit, the Caregiver Credit or the Infirm Dependant Credit. The measure will apply for the 2012 tax year.
  • Eliminate the $10,000.00 limit currently applicable for claims under the Medical Expenses Tax Credit for the 2011 tax year.
  • A $3,000 non-refundable Volunteer Firefighter Tax Credit (worth $450) for volunteer firefighters who perform at least 200 hours if service in a year .
  • A $500 (worth $75) non-refundable Children’s Arts Tax Credit for children under the age of 16 years registries in a qualifying supervised activity. Despite the name, the credit will apply to eligible “artistic, cultural, recreational or developmental” activities. For children eligible for the Disability Tax Credit, the age limit is 18 years and the tax credit is increased by an additional $500.

EXAMPLES OF ELIGIBLE ACTIVITIES

  • Art
  • Languages
  • Public Speaking
  • Chess
  • Music
  • Scouting
  • Crafts
  • Painting
  • Sculpture
  • Drama
  • Photography
  • Sewing
  • Girl Guides
  • Pottery
  • Tutoring

The Canada Revenue Agency will make final determinations regarding the eligibility of particular activities, program and expenses. The list of examples presented above is not exhaustive.

Fees charges for programs that form part of a school’s curriculum will not be eligible.

A New Guaranteed Income Supplement Top-up

  • Effective July 1, 2011, single seniors who are receiving an annual income (other than OAS and GIS) of $2,000 or less will receive additional annual benefits of $600. The top-up will be gradually reduced and completely phased out at an income level of $4,400. For senior couples, the additional benefits are worth $840 and the bottom and top thresholds are $4,000 and $7,360 respectively.

Please see the following website for further details:   

hhtp://www.cra-arc.gc.ca/gncy/bdgt/2011/menu-eng.html

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Beginning  July 1, 2010, certain GST/HST registrants have to file their returns’ electronically. If your are required to file electronically and you fail to do so, an initial $100 penatly will result. Each subsequent failure to file electronically will result in a $250 penalty. For more information on this topic see Mandatory electronic filing for most GST/HST registrants at www.cra-arc.gc.ca.

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