Tax law changes for 2009

The following is a summary of the various tax changes from the 2010 budgets.

Federal
Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Northwest Territories
Nunavut

Federal

The new tax rates and income brackets as shown on Schedule 1 are as follows:

Tax Brackets		Rates
$0	$40,970	15%
$40,971	$81,941	22%
$81,942	$127,021	26%
more than $127,021		29%

The personal basic amount has increased to $10,382.
The maximum age amount has increased to $6,446. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $75,480
The spousal amount and the amount for an eligible dependant have increased to $10,382.
The maximum amount for an infirm dependant age 18 or older has increased to $4,223 per dependant.
The maximum eligible earnings for CPP/QPP purposes is $47,200. The rate respecting CPP/QPP contributions is 4.95%.
For Canadian employees (except Quebec) the maximum amount of eligible earnings for employment insurance purposes is $43,200. The employment insurance premium rate remains unchanged at 1.73%
The maximum amount of eligible earnings for employment insurance purposes for a Quebec resident is $43,200. The employment insurance premium rate is at 1.36% (maximum premiums of $587.52).
The maximum amount of eligible adoption expenses has increased to $10,975.
The pension income amount remains unchanged at $2,000.
The maximum amount eligible for the calculation of the caregiver amount is $4,223 per dependant.
The disability amount has increased to $7,239, and may be increased by a maximum supplement of $4,223 (workchart 316).
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
The maximum amount for the Canada employment non-refundable tax credit has increased up to a maximum of $1,051.
The non-refundable tax credit for children under 18 has increased to an amount of $2,101 per child.
The 2010 budget proposes that separated parents that have shared custody of their children will be able to equally split the monthly payments of the Child Tax Benefit ("CTB"), Universal Child Care Benefit ("UCCB"), and the quarterly GST/HST credit.
The 2010 budget proposes to allow single parent families the option of declaring the UCCB on either the parent's return or to tax the sum on the return for the individual for which the eligible dependant amount was claimed.
Starting in 2010, the Canada Revenue Agency will no longer allow as medical expenses cosmetic procedures that are done solely for cosmetic purposes. However, the same procedures will qualify if the patient required the treatment for medical reconstructive purposes such as surgery to ameliorate a deformity arising from, or directly related to a congenital abnormality, a personal injury resulting from accidental trauma or a disfiguring disease.
The 2010 budget also proposes to extend the existing RRSP rollover rules to allow a rollover of a deceased individual's RRSP proceeds into a registered disability savings plan ("RDSP") of a financially dependent infirm child or grandchild.
The 2010 budget proposes to clarify that a post-secondary program that consists principally of research otherwise eligible for the Education Tax Credit and the scholarship exemption will be taxable for post-doctoral fellowships.
According to the 2010 budget an amount will be eligible for the scholarship exemption only to the extent it can reasonably be considered to be received in connection with enrolment in an eligible educational program for the duration of the period of study related to the scholarship.
Effective March 4, 2010, 4:00pm EST (the "Effective Time"), in order to allow employees stock option deductions on their personal income tax returns, employers with "cash-out" stock option plans may have to provide written proof that their company has not taken any deduction in consideration of such plans.
The 2010 budget also proposes special relief for tax deferral elections on stock options for taxpayers who elected under the current rules to defer taxation of their stock option benefits until the disposition of the optioned securities.
For U.S. social security benefits received on or after January 1, 2010 the 2010 federal budget proposes to reinstate the 50% inclusion rate for Canadian residents in receipt of U.S. social security benefits since January 1, 1996 and for their spouses and common-law partners who are eligible to receive survivor benefits.
The 2010 budget proposes that the Mineral Exploration Tax Credit be extended for one year for flow-through share agreements entered into on or before March 31, 2011. Funds raised with this credit during the first three months of 2011 can support eligible exploration until the end of 2012.
The maximum amount tax credit for sport and recreation per child remains unchanged at $500, plus a $500 supplement for children under 18 with disabilities.
The education amount for part-time studies and the textbook amount remain unchanged at $120 and $20 per month respectively.
The education amount for full-time studies and the textbook amount remain unchanged at $400 and $65 per month respectively.
The maximum amount for the refundable medical expenses supplement (line 452) has increased to up to a maximum of $1,074.
The Home Renovation Tax Credit has not been renewed for 2010.
For 2009 and subsequent years, a taxpayer may claim the new non-refundable Home Buyers' Tax Credit, based on an amount of $5,000, for a qualifying home acquired after January 27, 2009.
The maximum Home Buyers' Plan ("HBP") amount that can be withdrawn from an RRSP under the HBP has increased to $25,000.
With respect to the Investment Tax Credit, the deadline to claim the mineral exploration tax credit on qualifying expenses renounced under the flow-through share agreements was extended to March 31, 2010.
Eligible dividends are taxable at 144% with a federal dividend tax credit of 17.9739%. Dividends other than eligible dividends are taxable at 125% with a federal dividend tax credit of 13.3333%.

Newfoundland and Labrador

The new tax brackets and rates and the surtax are as follows:

Tax Brackets Rates

$0 $31,278 7.7%

$31,279 $62,556 12.65%

more than $62,556 14.4%
The personal basic amount is increased to $7,833.
The age amount has increased to $5,000. If the taxpayer's net income exceeds $27,400, this credit is gradually reduced and reaches NIL at a net income of $60,733.
The spousal amount and the amount for an eligible dependant have increased to $6,400 with an income threshold of $641.
The maximum amount for an infirm dependant age 18 or older has increased up to a maximum of $2,488 per dependant.
The amount of adoption expenses that can be claimed has increased to $10,571.
The maximum amount eligible for the calculation of the caregiver amount has increased to $2,488 per dependant.
The disability amount is increased to $5,285, and may be increased by a maximum supplement of $2,488.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,706.
The low-income seniors' annual benefit has increased from $803 to $900.
As noted above, personal income tax rates applicable to the 2^nd and 3^rd income brackets were reduced by 0.3 and 2.2 percentage points effective July 1, 2010.
The dividend tax credit for eligible dividends was increased to 11%. The dividend tax credit for dividends other than eligible dividends was set at 5%.

Prince Edward Island

The tax brackets and rates and the surtax remain unchanged:

Tax Brackets		Rates	Surtax rate	Threshold
$0	$31,984	9.8%	10%	(over) $12,500
$31,985	$63,969	13.8%
more than $63,969		16.7%

The personal basic amount remains unchanged at $7,708.
The age amount remains unchanged at $3,764. If the taxpayer's net income exceeds $28,019, this credit is gradually reduced and reaches NIL at a net income of $53,112.
The spousal amount remains unchanged at a maximum of $6,546 with an income threshold of $655.
The amount for an eligible dependant remains unchanged at a maximum of $6,546 with an income threshold of $655.
The maximum amount for an infirm dependant age 18 or older remains unchanged at a maximum of $2,446 per dependant.
The maximum amount eligible for the calculation of the caregiver amount remains unchanged at $2,446 per dependant.
The disability amount remains unchanged at a maximum of $6,890, and may be increased by a maximum supplement of $4,019.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,678.
The amount for young children remains unchanged at $100 per month for each child under six years old.
The dividend tax credit for eligible dividends was set at 10.34%. The dividend tax credit for dividends other than eligible dividends was set at 3.2%.

Nova Scotia

The new tax brackets and rates and the surtax are as follows:

Tax Brackets		Rates	Surtax rate	Threshold
$0	$29,590	8.79%	0%	NIL until a balanced budget is achieved
$29,591	$59,180	14.95%
$59,181	$93,000	16.67%
$93,001	$150,000	17.50%
more than $150,000		21%

The personal basic amount has increased to $8,231.
The age amount has increased to $4,019. If the taxpayer's net income exceeds $29,919, this credit is gradually reduced and reaches NIL at a net income of $56,712.
The spousal amount and the amount for an eligible dependant have increased to $6,989 with an income threshold of $699.
The maximum amount for an infirm dependant age 18 or older has increased to $2,716 per dependant.
The maximum amount eligible for the calculation of the caregiver amount has increased to a maximum of $4,753 per dependant.
The disability amount has increased to $4,887, and may be increased by a maximum supplement of $3,348.
The Nova Scotia post-secondary graduate tax credit ended in 2008. Only the unused credits from previous years can be claimed.
The Graduate Retention Rebate was introduced in 2009. University graduates that retain Nova Scotia residency on December 31^st may claim $2,500 over a six year period for a maximum credit of $15,000, and college graduates may claim $1,250 over a six year period for a maximum claim of $7,500.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,637.
The tax credit for sport and recreational expenses for children remains unchanged at a maximum of $500.
The amount for young children remains unchanged at $100 per month for each child under six years old.
The maximum claim for a labour-sponsored venture capital tax credit remains unchanged at $2,000.
Effective January 1, 2010 a fifth personal income tax bracket was introduced for taxable incomes in excess of $150,000 with a tax rate of 21%. However, the surtax has been suspended until a balanced budget is achieved.
Beginning July 1, 2010 Nova Scotia will introduce the "Affordable Living Tax Credit" designed to offset the 2% increase in HST for households with low and modest incomes. This credit will be paid quarterly up to an annual maximum of $240 per household, plus $57 per child under 19 years.
The above-mentioned Nova Scotia Affordable Living Tax Credit will be reduced by 5% per every dollar above the $30,000 threshold, and will be paid in conjunction with the GST/HST tax credit.
Seniors eligible for the Guaranteed Income Supplement ("GIS") will have their tax reduction for low-income seniors calculated before the GIS and the Affordable Living Tax Credit.
Commencing July 1, 2010 the poverty reduction credit will provide tax-free payments to low income residents of Nova Scotia in the amount of $50 per quarter. To qualify applicants must be 19 years of age with no dependents, receiving social assistance through the Income Assistance program as their main source of income, with a total annual income of $12,000 or less for the previous tax year.
The refundable tax credit for volunteer firefighters residing in Nova Scotia has been increased to $500.
The dividend tax credit for eligible dividends was set at 8.71%. The dividend tax credit for dividends other than eligible dividends was set at 7.7%.

New Brunswick

The new tax rates and income brackets are as follows:

Tax Brackets		Rates
$0	$36,421	9.30%
$36,422	$72,843	12.5%
$72,844	$118,427	13%
more than $118,427		14.3%

The personal basic amount has increased to $8,777.
The age amount has increased to $4,286. If the taxpayer's net income exceeds $31,905, this credit is gradually reduced and reaches NIL at a net income of $60,478
The spousal amount and the amount for an eligible dependant are increased to $7,453 with an income threshold of $746.
The maximum amount for an infirm dependant age 18 or older has increased to $4,146 per dependant.
The caregiver amount has increased to $4,145.
The disability amount and the amount transferred from a disabled person are increased to $7,106.
The disability supplement is increased to $4,145.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,985.
As indicated above, New Brunswick's government continues to lower personal income tax rates as part of a four year plan. In 2010, the highest marginal tax rate will decrease from 17% to 14.3%.
The dividend tax credit for eligible dividends was set at 11.81%. The dividend tax credit for dividends other than eligible dividends was set at 5.3%.

Quebec

The tax rates are unchanged but apply to new income brackets as follows:

Tax Brackets Rates

$0 $38,570 16%

$38,571 $77,140 20%

more than $77,140 24%
The basic amount has increased to $10,505.
The adjustment for income replacement indemnities has increased to $9,454.50.
The amount for persons living alone has increased to $1,230.
The amount for a single-parent family has increased to a maximum of $1,525.
The age amount has increased to a maximum of $2,260.
The maximum amount of eligible retirement income is increased to $2,010.
The amount for other dependants has increased to $2,820.
The amount for post-secondary studies is increased to:
i) $6.925 reduced by 80% of the child's taxable income, for children 18 and over, and;
ii) a maximum of $3,880 for 2 semesters of post-secondary studies, for children under 18.
The maximum amount of employment insurance premiums is $587.52.
The maximum amount of Quebec parental insurance plan premiums is $316.25.
The medical expenses tax credit has increased to $1,061.
The maximum contribution to the Quebec prescription drug insurance plan (Schedule K) for 2009 has increased to $585 per spouse.
The income threshold used in the calculation of the tax credit respecting the work premium (Schedule P) changed to $15,368 for an individual with a spouse and $10,014 for an individual without a spouse.
The deduction for workers has increased to a maximum of $1,030.
The Quebec refundable home renovation tax credit was not renewed for 2010.
For 2010, the Quebec refundable tax credit for the acquisition of a new fuel-efficient vehicle ranges from $2,000 to $4,000 subject to certain conditions.
Commencing July 1, 2010 Quebec will introduce the "health contributions" for every eligible adult resident of Quebec in the amount of $25 for 2010, $100 per adult for 2011, and $200 per adult as of 2012.
Starting July 2011, the Quebec government will introduce the "solidarity tax credit."
The Quebec "solidarity tax credit" will have three components consisting of the QST, housing, and the northern residents credits. To qualify individuals are required to be at least 18 years old (subject to certain restrictions), be a resident of Quebec, hold a recognised status (i.e. citizen, permanent resident, or refugee), and not be confined to prison.
To obtain the Quebec "solidarity tax credit" individuals are required to consent to obtaining the credit by means of direct deposit into a bank or financial institution located in Quebec.
For 2010, for the purposes of calculating the home-supports tax credit the frequency requirement for housekeeping services will be reduced from at least once a week to at least once every two weeks. Nursing services will only be required for a period of at least three hours presence a day instead of seven hours.
As of 2011, the frequency of advance payment of the credit for child care expenses and the work premium will be paid on a monthly rather than a quarterly basis.
Dividends other than eligible dividends received, will be taxable at 125% with a Quebec dividend tax credit of 8%. Eligible dividends will be taxable at 144% with a Quebec dividend tax credit of 11.9%.

Ontario

The tax rates are unchanged but apply to new income brackets and the new surtax as follows:

Tax Brackets		Rates	Surtax rates	Thresholds
$0	$37,106	5.05%	20% 36%	$4,006 $5,127
$37,107	$74,214	9.15%
more than $74,214		11.16%

The personal basic amount has increased to $8,943.
The age amount has increased to $4,366. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $61,613.
The spousal amount, the amount for an eligible dependant and the amount for an infirm dependant (age 18 or older) have increased to $7,594.
The maximum amount for retirement income has increased to $1,237.
The caregiver amount has increased to $4,216.
The disability amount has increased to $7,225.
The disability supplement has increased to $4,214.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
The maximum Ontario Health Premium remains unchanged at $900.
The maximum amount of eligible expenses related to the adoption of a child under 18 years of age has been increased to $10,911 per child.
The maximum amount of allowable medical expenses for other dependants has been increased to $10,911.
As announced in the 2009 Ontario budget, the Ontario Property and Sales Tax Credit will be replaced with two separate and enhanced credits aimed at assisting low-to-middle income individuals.
For the 2010 Ontario Sales tax ("OST") credit eligible individuals that applied for the 2009 GST/HST tax credit may be able to receive up to $260 per taxpayer, spouse (or common-law partner), and dependent children less than 19 years of age.
The maximum OST credit allowable will be reduced by 4% of the amount adjusted net incomes in excess of $20,000 for single individuals, and $25,000 for single parent families, married or living common-law couples.
For 2010, the Ontario Property Tax Credit will provide a credit for eligible individuals up to $250 plus 10 per cent of occupancy cost for non-seniors, and $625 plus 10 per cent of occupancy cost for seniors up to a combined maximum of Ontario Property and Sales tax credits in the amount of $900 for non-seniors and $1,025 for seniors. Both credits can be received even if no tax is payable.
Senior couples can claim the full amount of credits if they receive the maximum level of income ($24,750) under the Old Age Security ("OAS"), Guaranteed Income Supplement ("GIS"), and the Ontario Guaranteed Annual Income System ("GAINS").
The dividend tax credit for eligible dividends was increased to 6.4%. The dividend tax credit for dividends other than eligible dividends remains unchanged at 4.50%.

Manitoba

The new tax rates and income brackets are as follows:

Tax Brackets Rates

$0 $31,000 10.8%

$31,001 $67,000 12.75%

more than $67,000 17.4%
The personal basic amount has increased to $8,134.
The age amount remains unchanged at $3,728. If the taxpayer's net income exceeds $27,749, this credit is gradually reduced and reaches NIL at a net income of $52,602.
The spousal amount and the amount for an eligible dependant have increased to $8,134.
The maximum amount for an infirm dependant age 18 or older remains unchanged at $3,605 per dependant.
Starting in 2011, the children's fitness maximum amount (renamed the fitness tax credit) remains unchanged at $500 per child and the maximum amount that can be claimed for children disabilities remains unchanged at $500 per child. The minimum registration fee of $100 also remains the same. However, the age limitation will be expanded to include young adults aged 16 through 24 years of age.
The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
The caregiver amount remains unchanged at $3,605. With an income threshold of maximum $12,312.
The disability supplement remains unchanged at $3,605.
The disability amount and the amount transferred from a disabled person remain unchanged at $6,180.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has remained unchanged at $1,728.
The maximum amount of eligible expenses related to the adoption of a child under 18 years of age remains unchanged at $10,000 per child.
The maximum amount for the Education Property Tax Credit is increased to $650.
The Manitoba "Fertility Treatment Tax Credit" will allow up to $20,000 in annual eligible costs incurred and paid after September 2010 to be claimed as a refundable tax credit up to a maximum annual limit of $8,000.
Students resident in Manitoba and attending a post-secondary institution may be able to claim a "Tuition Fee Income Tax Rebate Advance" in the form of a refundable 5% tax credit on tuition and ancillary fees paid after August 31, 2010.
The Manitoba Mineral Exploration Tax Credit will increase in two steps: to 20% on flow-through share agreements entered into from April 1, 2009 until March 31, 2010, and to 30% on flow-through share agreements entered into from April 1, 2010 until March 31, 2012.
The dividend tax credit for eligible dividends is set at 11%. The dividend tax credit for dividends other than eligible dividends has remains at 2.5%.

Saskatchewan

The tax rates unchanged but apply to new income brackets as follows:

Tax Brackets Rates

$0 $40,354 11%

$40,355 $115,297 13%

more than $115,297 15%
The personal basic amount has increased to $13,348.
The age amount has increased to $4,366. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $61,613.
The maximum amount for an infirm dependant age 18 or older has increased to $14,437 per dependant.
The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
The caregiver amount and the disability supplement are increased to $8,445.
The disability amount and the amount transferred from a disabled person are increased to $8,445.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
The child amount has increased to $4,944 per child.
The senior supplementary amount has increased to $1,153.
At the time of writing, no significant personal income tax changes were introduced by the government of Saskatchewan.
The dividend tax credit for eligible dividends was set at 10.83%. The dividend tax credit for dividends other than eligible dividends remains at 6%.

Alberta

The income tax rate remains unchanged at a flat rate of 10%.
The personal basic amount has increased to $16,825.
The age amount has increased to $4,689. If the taxpayer's net income exceeds $34,903, this credit is gradually reduced and reaches NIL at a net income of $66,163.
The spousal amount has increased to $16,825.
The maximum amount for an infirm dependant age 18 or older has increased to $9,740 per dependant.
The maximum amount for retirement income has inceased to $1,296.
The maximum amount of allowable medical expenses for other dependants has increased to $11,507.
The caregiver amount and the disability supplement were increased to $9,740.
The disability amount and the amount transferred from a disabled person were increased to $12,979.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,175.
The maximum amount of eligible adoption expenses is increased to $11,507.
At the time of writing, no new significant personal income tax measures were introduced by the government of Alberta.
The dividend tax credit for eligible dividends was increased to 10%. The dividend tax credit for dividends other than eligible dividends was reduced to 3.5%.

British Columbia

The tax rates are unchanged but apply to new income brackets as follows:

Tax Brackets		Rates
$0	$35,859	5.06%
$35,860	$71,719	7.7%
$71,720	$82,342	10.5%
$82,343	$99,987	12.29%
more than $99,987		14.7%

The personal basic amount is increased to $11,000.
The age amount has increased to $4,220. If the taxpayer's net income exceeds $31,413, this credit is gradually reduced and reaches NIL at a net income of $59,546.
The spousal amount and the amount for an eligible dependant were increased to $9,653 with an income threshold of $965.
The maximum amount for an infirm dependant age 18 or older has increased to $4,118 per dependant.
The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
The caregiver amount has increased to $4,118.
The disability supplement has increased to $4,118.
The disability amount and the amount transferred from a disabled person were increased to $7,058.
The maximum amount of eligible adoption expenses has increased to $10,975.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $1,957.
The basic reduction amount has increased to $391.
At the time of writing, no significant personal income tax changes were introduced by the government of Alberta.
The dividend tax credit for eligible dividends was reduced to 10.83%. The dividend tax credit for dividends other than eligible dividends was reduced to 3.4%.

Yukon

The unchanged tax rates and new brackets and the surtax are:

Tax Brackets		Rates	Surtax rate	Threshold
$0	$40,970	7.04%	5%	$6,000
$40,971	$81,941	9.68%
$81,942	$126,021	11.44%
more than $126,021		12.76%

The personal basic amount has increased to $10,382.
The age amount has increased to $6,446. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $75,480.
The spousal amount and the amount for an eligible dependant were increased to $10,382.
The maximum amount for an infirm dependant age 18 or older has increased to $4,223 per dependant.
The amount for each child who has under 18 years of age at the end of the year has increased to $2,101.
The pension income amount remains unchanged at $2,000.
The maximum amount of allowable medical expenses for other dependants remains unchanged at $10,000.
The sport and recreation amount remains unchanged at $500 per child under the age of sixteen years. Also, a supplement of $500 is available for children who are eligible to the disability amount and are under the age of 18 at the beginning of the year.
The caregiver amount has increased to $4,223.
The disability supplement has increased to $4,223.
The disability amount and the amount transferred from a disabled person were increased to $7,239.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
The dividend tax credit for eligible dividends was set at 10.83%. The dividend tax credit for dividends other than eligible dividends was set at 4.45%.

Northwest Territories

The new tax brackets and rates are:

Tax Brackets		Rates
$0	$37,106	5.9%
$37,107	$74,214	8.6%
$74,215	$120,656	12.2%
more than $120,656		14.05%

The personal basic amount has increased to $12,740.
The age amount has increased to $6,232. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $74,053.
The spousal amount and the amount for an eligible dependant were increased to $12,740.
The maximum amount for an infirm dependant age 18 or older has increased to $4,223 per dependant.
The caregiver amount has increased to $4,223.
The disability supplement has increased to $4,223.
The disability amount and the amount transferred from a disabled person were increased to $10,332.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
At the time of writing the government of the Northwest Territories did not announce significant personal income tax changes for 2010.
The dividend tax credit for eligible dividends was set at 11.32%. The dividend tax credit for dividends other than eligible dividends was set at 6%.

Nunavut

The tax rates are unchanged but apply to new income brackets as follows:

Tax Brackets		Rates
$0	$39,065	4%
$39,066	$78,130	7%
$78,131	$127,021	9%
more than $127,021		11.5%

The personal basic amount has increased to $11,714.
The age amount has increased to $8,786. If the taxpayer's net income exceeds $32,506, this credit is gradually reduced and reaches NIL at a net income of $91,079.
The spousal amount and the amount for an eligible dependant were increased to $11,714.
The maximum amount for an infirm dependant age 18 or older was increased to $4,223 per dependant.
The caregiver amount has increased to $4,223.
The disability supplement has increased to $4,223.
The pension income amount remains unchanged at $2,000.
The disability amount and the amount transferred from a disabled person were increased to $11,714.
The maximum medical expense threshold (3% of net income) required to reduce total medical expenses has increased to $2,024.
The amount of medical expenses you may claim for other dependants remains unchanged at $10,000.
The amount for young children remains unchanged at $1,200 for each child less than six years old of age.
The dividend tax credit for eligible dividends was set at 6.11%. The dividend tax credit for dividends other than eligible dividends was set at 4%.
The volunteer firefighters tax credit remains at $513.

For further information on Canadian tax law changes, please visit the CRA's Web site.

For further information on Quebec tax law changes, please visit the MRQ's Web site.

Click here for other useful government links.

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