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The following is now available on the CRA Web site:

Did you know…

That businesses with an eligible apprentice may be able to claim the apprenticeship job creation tax credit? This is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices for employment after May 1, 2006. The maximum credit is $2,000 per year for each eligible apprentice.

For more information about the credit, visit www.cra-arc.gc.ca/whatsnew/apprenticeship-e.html

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The following is now available on the CRA Web site:

Did you know…

That if you are a tradesperson you may be able to deduct your tool expenses? The newly proposed tradesperson’s tools deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction applies to the total cost of eligible tools in excess of $1,000 acquired by an employed tradesperson after May 1, 2006.

Source: CRA

The following is now available on the CRA Web site..

Did you know…
That you can claim, as a non-refundable tax credit, medical expenses for yourself, your spouse or common-law partner, and your children born in 1989 or later? For 2006, the total expenses have to be more than 3% of your net income, or $1,884, 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 1988 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.

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The following is now available on the CRA Web site:

Tax Tip: The age amount has increased ..

Did you know…

That as of January 1, 2006, the age amount maximum increased from $4,066 to $5,066? If you were 65 or older on December 31, 2006, and your net income was less than $64,043, you can claim the age amount. You may also be able to transfer unused portions of the age amount to your spouse or common-law partner.

For more information, visit our Web site at www.cra.gc.ca.

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There is a Q & A Update about the Tax Credit for Public Transit Passes

Beginning on July 1, 2006, the Government of Canada is offering individuals a non-refundable tax credit to cover the cost of public transit passes. If you have a public transit pass, make sure to read the questions and answers below.

1. What is the tax credit for public transit passes?
The tax credit for public transit passes is a non-refundable tax credit for the cost of buying a monthly (or longer duration) pass for commuting on buses, streetcars, subways, commuter trains and local ferries.

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I thought I would add some clarity to the designation of eligible dividends, as noted in the previous post notice from Canada Revenue Agency .. although you should direct your queries to your own tax preparer or CPA/CA/Accountant for tax professional advice.

Background

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The following is now available on the CRA Web site:

2006-12-20

Canadian resident individuals who receive eligible dividends in 2006 and subsequent years will be entitled to a higher gross-up and dividend tax credit. Corporations have to designate each eligible dividend that they pay, and notify shareholders in writing that the dividend is eligible. A corporation must make every effort to notify shareholders of an eligible dividend. The following are general guidelines for corporations to follow.

A. Notification of Shareholders
For the 2006 Year
All Corporations

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The following is now available on the CRA Web site:

Each year since 2000, personal income tax amounts have been indexed to inflation using the Consumer Price Index data, as reported by Statistics Canada.

Changes to tax bracket thresholds and non-refundable credits will take effect as of January 1, 2007. Adjustments to the Canada Child Tax Benefit (including the National Child Benefit supplement and the Child Disability Benefit) and the Goods and Services Tax Credit will take effect as of July 1, 2007, to coincide with the beginning of the “program year” for these benefits.

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PLEASE NOTE: YOU ARE NOT GOING CRAZY! THAT ENVELOPE DIDN’T ARRIVE YET!

I just received an email from Canada Revenue Agency to advise my clients of the following:

For 2006 and subsequent tax years, taxpayers who had their return prepared by a tax professional in the preceding tax year, and had a resulting nil or debit balance, will no longer receive a tax package from the Canada Revenue Agency (CRA).

This basically means that if you had a no balance owing or received a refund and someone like me EFILED your 2005 tax return .. you will not get that envelope from Revenue Canada that had your name on the sticker with that T7DR(A) .. the non-personalized remittance form used by taxpayers to make their payment on filing either through a bank or to the CRA directly.

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Last year .. on November 27, 2005 .. I blogged about some Year-End Tax Planning Considerations for 2005 that individuals could review and consider.

This year .. I thought I would just post some links “OUT THERE” that I have found around the ‘www … from sources that I frequently read or follow throughout the year.

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