General Tax Information
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Canada Caregiver Credit -Starting in 2017 the infirm dependant credit, caregiver credit and family caregiver credit are being consolidated. See Family Caregiver Tax Credit
U.S. Social Security benefits - If you received U.S. Social Security benefits, you may be eligible to claim a deduction of up to 50% of the benefits received. For more information, see the Exempt foreign income section.
Ontario Trillium Benefit Starting July 2012, the Ontario Trillium Benefit (OTB) combines, into one monthly payment, the
• Ontario Energy and Property Tax Credit, and
• Northern Ontario Energy Credit
Starting July 2012, you will be paid monthly rather than having to wait until after you file your tax return next year. You may elect to receive Trillium Benefits either monthly or annually. The election will be made on your tax return however, you must wait for 1 year to receive your annual payment (when current period for monthly payments has ended).
Meal and beverage expenses of long-haul truck drivers are deductible at a higher rate than the 50% permitted for other transportation employees. During eligible travel periods in 2010, meal and beverage expenses are deductible at 75%. This rate will increase by 5% again in 2011 at which time the maximum rate of 80% will be reached. See details at Meal and Beverage Expenses of long-haul truck drivers.
Volunteer Firefighters Tax Credit -For 2011 and subsequent years you may claim a non-refundable tax credit based on an amount of $3,000 for certain volunteer firefighters, see Voluteer Firefighter Tax Credit.
Tax-free savings account (TFSA) - Beginning in 2009, a registered savings account has been introduced and will allow individuals (other than trusts) to earn investment income tax free. For more information visit Tax-free Savings Account.
Donations & capital gains - You may be entitled to an inclusion rate of zero on a capital gain realized from the exchange of certain types of capital property that are donated to a registered charity or other qualified donee. For more information See Pamphlet P113, Gifts and Income Tax.
Pension Income Splitting: - Starting in 2007 if you or your spouse received pension income that is eligible for the pension income amount, you may be eligible to split it for income tax purposes. This may result in substantial tax savings. See Pension Income Splitting.
First-Time Home Buyers' Tax Credit (HBTC) - For 2009 and subsequent years you may claim a new $5,000 non-refundable tax credit for certain home buyers that acquire a qualifying home after January 27, 2009. The credit increased to $10,000 for 2022 and subsequent years. For more information visit First-Time Home Buyers' Tax Credit.
RRSP - Home Buyers' Plan - The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. For more information visit Home Buyers' Plan.
RRSP/RRIF Issues Upon Death - Currently, the value of an individual's RRSP or RRIF at the time of death is generally included in the deceased individual's income for the year of death. This income inclusion does not take into account any decreases in the value that may occur after death and prior to the final distribution from the RRSP or RRIF. For more information visit RRSP/RRIF Issues Upon Death.
NEW CPP Rules starting January 2012
You can continue to work after age 60 and receive CPP benefits. If you continue working while collecting CPP, you have to continue to make CPP contributions until age 65. After age 65 it is your choice to continue paying into the system up to age 70. Additional contributions made into the system will add to your CPP benefits as CPP will continue to recalculate the benefits you are entitled to. If you wish to stop contributing after age 65, you must elect to stop contributing using form CPT30.
Penalty for taking CPP early (before age 65) will increase from 0.50% per month for each month before age 65 to 0.60% (.52% 2012, .54% 2013, .56% 2014, .58% 2015 and .60% for 2016 and onwards). This is an increase in the penalty from 30% to 36% at age 60 in the year 2016.
There is also a boost in benefits for waiting past age 65 (.50% per month 2010, .57% 2011, .64% 2012 and .70% 2013). This is an increase in benefits in delaying your CPP pension from 30% to 42% to age 70 in 2016.
The old breakeven point to make it worth your while to wait until age 65 to collect your CPP was that you had to live beyond age 77. The new breakeven point is approx. age 75 however, this will change with Post-Retirement Benefits and other individual factors.
For more information please click, here.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.