Tax tips Helpful information you should know
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Transcript of Tax tips Helpful information you should know
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Tax tipsHelpful information you should know
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Child tax credit
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$100 a month per child under age 6
Non-refundable tax credit of $2,000 for each child under 18 Tax savings of
up to $300* per child
Universal Child Care Benefit
*Reflects the reduction to 15% (from 15.5%) in the lowest personal federal tax rate as announced in the October 30, 2007 federal Economic Statement.
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Spousal and other amounts
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Tax credit
Increased from $7,581 to $9,600* for 2007
Credit amounts will increase to match increases in basic personal amount
*Reflects the increase to $9,600 (from $8,929) as announced in the October 30, 2007 federal Economic Statement.
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Registered Educations Savings Plans (RESPs)
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Providing more flexibility
Annual contribution limit of $4,000 has been eliminated
Lifetime RESP contribution limit increased to $50,000 from $42,000
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Canada Education Savings Grant (CESG)
Maximum annual RESP contribution to qualify for the 20% CESG has increased to $2,500 from $2,000
Maximum annual CESG per beneficiary increased to $500 from $400 per year
Maximum CESG for a year has increased to $1,000 from $800
Lifetime CESG limit of $7,200 has not changed
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Registered Disability Savings Plans (RDSPs)
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Introducing
RDSPs, the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB)
Those who qualify for disability tax credit may establish RDSP
Contributions are not deductible May qualify for a CDSG and a CDSB
Maximum lifetime contribution is $200,000
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Investment income on contributions
Will accumulate tax-free Only investment growth, CDSG & CDSBs will
be included in beneficiary’s income
Payments will not affect other benefits
Beneficiary or legal rep. entitled to receive payments
Contributors not entitled to a refund
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Lifetime capital gains exemption
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2007 Federal Budget
Proposed to increase amount to $750,000 from $500,000
Apply to small business corporation shares & farm or fishing property Occurring on or after
March 19, 2007
At time of printing this proposal had not yet passed into law.
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Reducing tax deductions at source
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Reduce tax deducted if you have:
Non-payroll RRSP contributions
Child care expenses
Interest expenses on investment loans
Alimony
Maintenance or support payments
Charitable donations or rental losses
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Notify payroll by submitting one of these documents
1. A revised TD1 form found on the CRA website or,
2. The Child Amount Notice www.cra-arc.gc.ca
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Quebec residents
Application for a Reduction in Source Deductions of Income Tax
www.revenu.gouv.qc.ca
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Important notes
The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.
Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including: segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts.
Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.
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