| As tax season approaches, so does the anxiety felt | | | | • Registered Disability Savings Plan |
| by most tax payers. Everyone wants to be sure they | | | | • Investment Tax Credit for Child Care Spaces |
| are minimizing the amount of taxes they are paying. | | | | • Lifetime Capital Gains Exemption increase from |
| Although this stress can’t be completely eliminated | | | | 500K to 750K |
| in most cases, it can be greatly relieved. A sure way | | | | • Working Income Tax Benefit |
| to reduce tax related stress is to be prepared, by | | | | • GST Cut to 5% effective January 1, 2008 |
| keeping your books in good order throughout the year, | | | | • Lowest personal income tax rate will be reduced |
| and to keep informed about any changes to tax laws | | | | to 15% from 15.5% |
| and available deductions. Such deductions for 2007 | | | | • Basic Personal Amount increased to $9,600 for |
| include: | | | | 2007 and 2008 and to $10,100 for 2009. |
| • The Child Tax Credit (CTC) - This new | | | | For Quebecers, the 2007 the provincial budget was |
| non-refundable tax credit of $2,000 can be claimed for | | | | released with a number of changes to the |
| each child under the age of 18. | | | | provincial-government tax and benefit programs |
| • The Canada Child Tax Benefit (CCTB) - A tax | | | | administered by Revenue Quebec. These changes |
| free, monthly payment designed to help families with | | | | include: |
| the cost of raising children. The annual base benefit is | | | | • Increase to the refundable tax credit for home |
| $1,283 for each child under 18, there is a supplement of | | | | support services for seniors |
| $90 for your third and each additional child. However | | | | • Refundable tax credit to support education |
| as your household income increases, your CCTB | | | | savings (RESP) |
| decreases. | | | | • Transfer of the unused portion of the tax credit |
| • The Children’s Fitness Credit - The maximum | | | | for tuition fees |
| credit is $500 to cover registration costs for each child | | | | • Increase in the tax credit for retirement income |
| under the age of 16 who joins an eligible program at | | | | from $1,000 to $1,500 |
| any time during the year. | | | | Many find the process of preparing for, and filing their |
| In 2007 there were two Federal budgets, and as a | | | | taxes overwhelming, and for these individuals, the best |
| result a number of changes to the federal government | | | | advice one can give would be to seek the advice of a |
| tax and benefits programs were announced. Some of | | | | professional, whose job it is to be aware of the latest |
| the highlights of the budgets that tax payers should be | | | | changes in tax laws. A certified accountant is trained |
| aware of prior to this year’s tax season are: | | | | to know how to best reduce your tax burden, or |
| • Pension Income Splitting | | | | increase your refund, all while reducing the stress of |
| • Increase to the age limit for RRSP from 69 to 71 | | | | tax season. |
| • New Child Tax Credit (discussed above) | | | | |