This internet site is updated as current info becomes available AND IS NOW BEING UPDATED FOR 2008/2009
USE WITH CAUTION.
Last update was November 15, 2008.The site includes rates applicable to 2008 Personal Tax Returns. Where 2008 rates are not known at this time the 2007 rates are included here. Shaded items are linked to other internet sites. For best results view on the internet and renew/refresh often.

Disclaimer: The information contained herein is presented for educational purposes only. Seek professional advice for your Personal situation.

Universal Child Care Benefit
Parents not receiving the Child Tax Benefit because they don't qualify for the benefit which is pegged to family income are entitled to the new Universal Child Care Benefit, but they must apply for it. There is a two- to three-month delay to process applications. Time to apply is now as the law also provides for the government to make payments retroactively for up to 11 months afterwards.
Application forms are available on the Canada Revenue Agency website at The Application Form. They are also available by calling 1 800 959-2221 or at your local Canada Revenue Agency office or Service Canada Centre.
Also, see the Centennial Education Savings Plan below. Free money if you qualify.
Canadians can now apply for child benefits and credits onlineApply for child benefits is the first benefit and credit related self-serve online transaction option offered through My Account.

Check your filing status RE:-

Residence Status - - Northern Residents Check hereT4039 - Northern Residents Deductions - Places in Prescribed Zones Do you qualify ? If so here is the form required Form T2222
Information for Emigrants and Canadian Income Taxes Guide T4056 and a bulletin IT-221 R3 to help you determine your residence status is available on the CRA website.

Marital Status - Married, Common-law, Single or ? You must determine if you are in a relationship that REQUIRES you to report your partner's income and access common benefits before filing your return(s). If necessary consider filing the RC65 Marital Status Change form from CRA.

Finding out more - You can get information directly over the PHONE covering your RRSP Contribution Limit, GST Credit, Canada Child Tax Benefit and Tele-refund. Go to - T.I.P.S. PHONE SERVICE OR go to MY ACCOUNT on the internet. You will need your SIN #, date of birth, the amount reported on line 150 of your 2006 or 2007 tax return AND the eight digit access code that appears on your last Notice of Assessment.

DECEMBER 31, 2008 - Personal tax years all run on a calendar year basis. This will be the deadline for some personal deductions (credits).

----- NOTE These 3 sites are now UNDER CONSTRUCTION for 2008 rates ------
FAST FACTS SHEET 1 for Personal Tax 2007 and 2008.
FAST FACTS SHEET 2 WHATS NEW for Personal Tax 2007(Includes Working Income Tax Benefit (WITB) info.
Meal and vehicle rates used to calculate travel expenses (Moving , Medical Etc.) for 2008 .

a) Basic Personal Amount - Federal Every individual and their spouse/equivalent-to-spouse has a basic personal exemption of $9,600. If you become 65 or older on December 31, 2008 (born in 1943 or earlier,you can claim the age amount of $5,276. You may also be able to transfer unused portions of the age amount to your spouse or common-law partner.For 2008, the age credit amount begins to be phased out at a 15% rate when net income reaches $31,524. This credit is fully phased out when net income reaches $65,449. Note - There is a provincial credit as well. Old Age Pension becomes repayable on an increasing scale when a person's net income exceeds $ 64,718.
You can read more here: Age amount from CRA

b) Alberta Tax and Credits - The 2008 Personal Tax Return will include an Alberta Return. The Basic personal amount for 2007 was $ 15,435 2008 TBA. Alberta credits are indexed to the Alberta Consumer Price Index. Other provinces also provide their own forms to be used to calculate personal tax credits and provincial taxes.

c) Charitable Donations GENERAL RULES: - Maximum deduction is 75% of Net Income (100 % in year of death). Excess can be carried forward up to 5 years. The tax credit is higher for charitable donations in excess of $ 200. (Fedral Rates: 16% on the first $200 and 29% on the balance allowable plus Provincial rate as applicable). Spouses can maximize the tax credit by combining receipts made jointly or by grouping two years donations into one year. Donations must have been made by December 31,2008 to qualify for a 2008 deduction. Charities must have a registration number to be eligible for credit. A list is available on the CRA website at www.ccra.gc.ca/charities or contact CRA if your charity is not listed.
A new service Giving to charity: Information for donors
- Art and Charitable Donations - "Art-Flips" - CRA has challenged these on a number of occasions. Here is a sample case that the taxpayer lost November 2005. Wednesday, November 30, 2005 Ottawa wins another round on art-flips
Next you can review a new Taxpayer Alert from CRA August 13 2007 and note that they are now only doing 2003 and the comment "Every audit completed to date has resulted in a reassessment of tax, plus interest. In many cases the CRA has denied the “gift” completely. Penalties will be considered, especially where an investor was audited and reassessed for previously participating in a gifting arrangement."

d) Disability Tax Credit - The base amount is a tax credit of $7,021 claimable by self/spouse and possibly others. The info on CRA's website "RC4064" is available for you to read. But one word of caution it is your Doctor or other qualified person's* opinion of your condition that counts - Not yours. Sometimes their report indicating a disability is not accepted by CRA. If you feel you are entitled to a credit and have a valid report you may still have to work hard to get CRA to agree. Don't give up! More and more cases are being settled by the Courts. This is unfortunate as most often the person requiring the credit is not in a financial, physical and/or mental condition to challenge a negative response from CRA. The application form can be reprinted from CRA's website and taken to a qualified person* and submitted for signature.FORM T2201
* Qualified persons for this purpose, depending on the disability, can include a Medical Doctor, Optometrist, Audiologist, Occupational Therapist, Psychologist or Speech-language pathologist.
The CHILD DISABILITY BENEFIT (2008) is $4,095 for each child eligible for the disability tax credit. There is also an allowable child care and attendant expense credit of $2,399 available.

e) Caregiver amount RC4064Information for those who support people with disabilities
If you claim the caregiver amount you cannot also claim the amount for an infirm dependant for that person. SEE BELOW
If, at any time of the year, you (either alone or with another person) maintained a dwelling where you and a dependant lived together, you may be able to claim a maximum amount of $4,095. The dependant must have been one of the following individuals: your or your spouse or common-law partner's child or grandchild; or
your or your spouse or common-law partner's brother, sister, niece, nephew, aunt, uncle, parent, or grandparent who was resident in Canada.
You cannot claim this amount for a person who was only visiting you.
As well, your dependant must have met all of the following conditions. The person must have:
been 18 or over at the time he or she lived with you;
had a net income of less than $13,986, and been dependent on you due to physical or mental infirmity or, if he or she is your or your spouse or common-law partner's parent or grandparent, born in 1943 or earlier. If you were required to make support payments for a child, you cannot claim an amount for that child, unless the separation from your spouse or common-law partner occurred in 2008 due to a breakdown in your relationship.
In this case, you can claim either: the caregiver amount plus any allowable amounts as an eligible dependant and / or an eligible disability OR eligible support payments paid to your spouse or common-law partner.

OR CLAIM: Infirm Dependant Amount
You can claim an amount up to a maximum of $4,095 for each of your or your spouse or common-law partner's dependent children or grandchildren only if that child or grandchild was physically or mentally infirm and was born in 1989 or earlier. You can also claim an amount for more than one person as long as each one meets all of the following conditions. The person must have been:
your or your spouse or common-law partner's parent, grandparent, brother, sister, aunt, uncle, niece or nephew. born in 1989 or earlier;
physically or mentally infirm;
dependent on you, or on you and others, for support; and
a resident of Canada at any time in the year.
You cannot claim this amount for a person who was only visiting you.
Notes: - A parent is someone on whom you were completely dependent and who had custody and control of you when you were under 19 years of age. A child can be someone older than you who has become dependent on you. You can claim an amount only if the dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) is less than $5,811. If you were required to make support payments for that child, you cannot claim an amount for that child. However, if you were separated from your spouse or common-law partner for only part of 2008 due to a breakdown in your relationship, you can still claim an amount for that child as long as you do not claim any support amounts paid to your spouse or common-law partner. You can claim whichever is better for you.

f) Medical Expense Credit - Qualified expenses can be accumulated for any 12 month period ending in 2008. If you travel more than 40Km you may even qualify to deduct the cost of travel to obtain medical services. Go to :-Travel Expenses for Medical Expense
You can claim, as a non-refundable tax credit, medical expenses for yourself, your spouse or common-law partner, and your children born in 1990 or later. Total Medical Expenses have to be more than 3% of your net income, or $1,962, whichever is less.
You may also be able to claim medical expenses for the following persons if they depend on you for support:
- you or your spouse or common-law partner's child or grandchild who was born in 1989 or earlier; and
- you or your spouse or common-law partner's parent or certain close relatives who lived in Canada at any time in the year.
Alberta provides a special worksheet to calculate allowable medical expenses.

NOTE: Qualifying (You will have to be careful here, there are extensive modifications.) expenses must exceed the lesser of $1,962 or 3% of Net Income. Spouses should consider combining their claim for medical expenses. They can then choose the correct spouse to make the claim in order to achieve tax savings. For 2008 there have been restrictions placed on the deduction of medical expenses of dependents. In addition to travel insurance, prescriptions, dental and other medical expenses; reasonable expenses to build, renovate or alter a building to accomodate a person with medical difficulties IF PRESCRIBED BY A MEDICAL PRACTITIONER. This includes interest paid on loans taken for this purpose. Tuition fees in circumstances where a student requires special support not provided in the public school system can be deducted if certified by a qualified person. Other deductible items could include some weight loss programs, and cosmetic treatments where provided by a medical practioner. Best to save all receipts and review them carefully before inclusion in your return.
Nursing Home - All fees paid to a nursing home including food, care, administration, and social activities qualify as medical expenses. Other personal expenses that can be itemized separately may not qualify (i.e. hairdresser).
A refundable medical expense tax credit is available (Max $1,041 in 2008)in circumstances where there are high medical expenses and lower family income.

g) CHILD CARE
CRA's PDF file -Child and Family Benefits explains programs available.
To determine what deductions are available go to CRA's site - T778 Child Care Expenses Deduction for 2008 A federal child care deduction is available for eligible children under 16 years of age at some time in the year:
-Deductible by the lower income spouse or other eligible individual.
-Limit of $4,000 (Ages 7- 16), $7,000 (under 7) paid per child ($10,000 if under 7 or infirm (a disability tax credit has been claimed)) to a maximum of 2/3 earned income.
-Retain receipts with Name and Social Insurance Number (if applicable) of child care provider. Make sure all child care payments for 2008 are paid before December 31, 2008.

ALSO) CRA's PDF file -Day Care Operators (Click Here) should read the booklet.:

h) Legal Fees - Now expanded to include the collection of Spousal alimony and child support in some cases.

i) Political Contribution Credit
- Available for contributions to Registered political parties. The Tax credit (Federal) is 75 % of the first $400, 50% on next $350, 33.3% on next $525. Contribution for maximum credit of $650 toward federal tax only is a donation of $1,275. . The Provincial (Alberta AT-1 Sch 8) credit is 75% of first $200, 50% of next $900, and 33.3% on all donations from $1,100 to $2,300 Maximum credit of $1,000 toward provincial taxes only is reached with a donation of $2,300. Spouses can maximize credit by each spouse contributing at the higher rate levels rather than one spouse receiving a progressively lower rate. For example if both spouses wish to contribute a total of $800 (Federal) it would be better to give $400 each than for one spouse to give $800.

j) Adult Dependents - If you are caring (in home) for certain qualified elderly relatives/dependents you can access a non refundable credit.

k) Students An Interest tax credit based on interest payments made in the year is available on approved student loans. The credit is non-refundable but eligible for carry forward for 5 years. Tuition fees continue to qualify for an Education credit for full and part time enrollment. Unused education and tuition fees (May possibly include internet course fees) can be transferred to an eligible spouse, parent, grandparent or carried forward by the student to be claimed in any subsequent tax year. For 2008 there is also a textbook tax credit. It will be based on the time spent in school (like the education tax credit noted above) not on books purchased. Certain bursaries and Scholarships will be tax free to $ 3,000 per year. See IT-75R4 for CRA's info.For student loan information you can call 1-888-815-4514 for public university, college or technical institution borrowers OR 1-866-587-7452 for private trade school, vocational institution, career college borrowers or visit the HRDC website at - Human Resources Development Canada.

NOTE : Students can deduct moving expenses from the taxable amount of scholarships, bursaries or research grants that they receive, or against employment or business income, so save those moving expense receipts.
The Apprenticeship Job Creation Tax Credit is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice. It is available to any business that hires an "eligible apprentice".Apprenticeship Job Creation Tax Credit
In Alberta there are other funding sources Go to - www.studentawards.com AND/OR
ALIS Alberta's Student Site.

m) RESP'S-Registered Education Savings Plan. Registered Education Savings Plans (RESPs)
There are several different forms of these plans but the intention is to provide a method of saving funds for the education of your children. The contributions to the fund are NOT tax deductible but the income earned by the fund is tax-free until withdrawn. The beneficiary of the plan is usually the student who will be taxed at a low marginal rate. If the child does not pursue post-secondary education, another beneficiary may be appointed or it is possible to roll the funds into an RRSP (special circumstances apply). The contribution limit is $50,000/lifetime for each beneficiary.

NEW - Alberta Centennial Education Savings Plan - FREE MONEY for children born in 2005 or later. Go to For more Info. You must apply for the grant through an RESP plan provider.

n) CESG'S-Canada Education Savings Grants. - If you are interested in this program you should contact one of the financial institutions that offer this product for further information. Note: The beneficiary MUST have a SIN. Information on SIN's are available at Human Resources Development Canada (495-6802) or on the internet at: - Social Insurance Number (SIN) Application Form . Also, see our site - It contains general RESP / CESG Information.

February 29, 2009

- T4040 RRSPs and Other Registered Plans for Retirement - 2008- Can be purchased anytime in 2008 and within 60 days thereafter for deduction on your 2008 Income Tax Return. Try and do this a bit ahead as the line ups can get frustrating in the last few days. CRA has notified you of their calculation of your 2008 contribution limit on your 2007 tax assessment notice. You can verify your allowable maximum over the internet or by phone using an automated system dial 1-800-267-6999 and use the keypad on your phone to respond to the automated operator. Internet help is also available from CRA here.

Unused contribution room (when you didn't buy your maximum) arising after 1991 may be carried forward. Also, if you make a contribution but do not claim the full amount of the contribution on your return (e.g. if your tax rate is low) you can carry forward the unclaimed amount indefinitely and claim it as a deduction in a future year, subject to your deduction limit for that year. See additional information on over-contributions in "d" below. There is a lot of flexibility in RRSP's but you must be careful to choose the options that are right for you. Also, see the RRSP Home Buyers' Plan and Lifelong Learning Plan below.

NOTE: For 2008 the maximum dollar limit is $20,000 less benefits accrued to you as a member of a Registered Pension or Deferred Profit Sharing Plan. It will increase to $21,000 for 2009. All other items remain the same.

Additional RRSP Contributions

a) Retiring Allowances received from your employer on retirement or for a loss of office can be transferred to your RRSP subject to the following limits: For Years of service prior to 1989 $2,000 for each year for which RPP or DPSP have vested; $3,500 for all other years with that employer. For years of service after 1988 and before 1996 $2,000 for each year of service. The 1995 Budget eliminated this transfer for periods of service after 1995.

b) Lump Sum Receipts out of an RPP or DPSP can be transferred directly to an RRSP. Note if you receive the funds personally this direct transfer is not applicable.

c) Spousal RRSP's can be used to achieve income splitting in later years. Your contribution to both your personal RRSP and your spousal plan is restricted to your maximum indicated above. However, when the funds are withdrawn in later years (subject to certain timing rules) they are taxed in the hands of the annuitant. Be careful when purchasing spousal RRSP's. The selling institutions don't always pay enough attention when completing the forms. The person purchasing the RRSP is called the "CONTRIBUTOR" on the forms and is the person who must qualify to purchase the RRSP and the person that gets the deduction. The "ANNUITANT" is the person who must pay tax when the RRSP is cashed in. In the case of a spousal plan the Contributor and Annuitant are different names. In the case of a personal purchase (non-spousal) only the name of the contributor is usually shown. The definition of spouse allows a taxpayer to purchase a spousal RRSP in a common-law relationship.

d) The over-contribution limit is $2,000. (penalties are imposed for exceeding this amount) Professional advice is suggested if you are involved in over-contributions to your RRSP.

e) Transfers from one RRSP plan to another are allowed provided the funds go directly to the new plan. Be sure that you will not incur penalties as some RRSP's are locked in for a specific term, or other restrictions.

f) Persons turning 70 and 71 by the end of last year should be aware that NEW RULES have been implemented to do with RRSPs and RIFs. The age at which RRSPs must be converted to RIFs has changed to 71. Persons between 69 and 71 have transitional provisions available to them even where they have been receiving RIF payments during 2008. For more info go to: 2007 Budget - Questions and Answers
RETIRED ?

Click this Link Retired Persons - for a variety of related subjects

CRA WARNING RE: RRSPs From CRA
Fraudulent RRSP arrangements
We would like to warn taxpayers as well as industry professionals about a type of registered retirement savings plan (RRSP) arrangement that continues to be a compliance concern. These arrangements promise a tax-free withdrawal of RRSP funds.
The promoter, who claims to have discovered a loophole in the tax rules, entices taxpayers to convert their RRSP savings into a self-directed RRSP. The promoter then directs taxpayers to use the funds in their self-directed RRSP to purchase investments that are non-qualified, worthless, or non-existent. The funds may not be recoverable, and the taxpayers could also end up having to include an amount equal to the purchase price of the investment in their income.
For an RRSP trust that holds non-qualified investments, the annuitant is required to include the fair market value of the investment in income for the year of acquisition, according to subsection 146(10) of the Income Tax Act. In cases where the annuitant has not been assessed under subsection 146(10), the trust is required to pay a 1% tax per month on the fair market value of the investment, as outlined in subsection 207.1(1). In cases where the trust does not have marketable assets to pay this tax, the trustee can be held personally liable for the tax, as indicated in subsection 207.2(2).
Taxpayers should consult a knowledgeable tax advisor before they consider such an arrangement.
If you have questions or information on this type of arrangement, please call our telephone enquiries service."

Click this Link Homeowners - for a variety of related subjects

The Home Buyers' Plan permits first-time home buyers to withdraw up to $20,000 from an RRSP to finance the purchase of a home. An individual will be considered to be a first-time home buyer if neither the individual nor the individual's spouse owned a home and lived in it as their principal residence in any of the preceding five calendar years.

Specific formalities must be followed to ensure that CCRA is advised of your intention to participate in the plan. This is accomplished by completing form T1036 in advance of any withdrawal. Consider deferring your withdrawal until after December 31, if possible, as this will extend your time period for purchasing your home and repaying the RRSP by one year.

If you withdraw funds from your RRSP under the Home Buyers' Plan, a home must be acquired by October 1 of the year following the year of withdrawal. There will be no tax withheld on RRSP withdrawals made under this plan. The withdrawn funds must be repaid to your RRSP over a period not exceeding 15 years. For withdrawals made after 1994, this 15-year repayment period will commence in the second calendar year after withdrawal. CCRA will provide an annual statement informing you of your minimum repayment requirement. To the extent that the minimum repayment is not made, the short-fall is required to be included in your income for that year. Individuals may repay more than the scheduled annual repayment in any year (form T1037 will report this in your tax return). For 1995 and subsequent years annual repayments may be made within the first 60 days of the following year. A contribution made to an RRSP fewer than 90 days before it is withdrawn is generally not deductible except to the extent that the RRSP balance after withdrawal is more than the amount of such contributions.

The Lifelong Learning Plan - permits individuals to withdraw up to $10,000 per year (Max $20,000.) from an RRSP (other than a locked-in RRSP) provided they, or a spouse are enrolled in a qualifying education program for at least three months during the year. The withdrawls will be repayable in equal instalments over a period of ten years. Also consider that earnings may be lower, and student may have tuition and education credits so that a "taxed" withdrawl may make sense. Form RC96 is used to participate in the program.

The Lifelong Learning guide is available electronically through our internet site in the small business section or from CCRA's site - LifeLong learning Plan Guide and Form. It is also available in printed format by mail by phoning CCRA Forms at 1-800-959-2221.

MARCH 15, 2009 First 2010 Tax Instalment due if required (See instalments below).

MARCH 31, 2009 Other Returns DUE