|
|
The following table provides an overview of the federal income tax
changes for 2007.
|
Net Income
|
|
Line 115
Line 116
|
Other pensions or superannuation
Elected split-pension amount
(NEW LINE)
• Beginning in 2007, individuals who receive
pension income that qualifies for the $2,000 pension income tax
amount may transfer up to one-half of this income to a spouse or
common-law partner. The allocated amount is included on Line 116
in computing the transferee’s income.
|
|
Line 127
|
Capital gains
• Capital gains arising from gifts of certain
publicly traded securities made after March 18, 2007, to private
foundations qualify for a nil income-inclusion rate.
• The lifetime capital gains exemption
increases from $500,000 to $750,000 for dispositions of
qualifying property occurring after March 18, 2007.
|
|
Line 126
|
Rental net income
• The capital cost allowance rate for
non-residential buildings increases from 4% to 6% for buildings
acquired after March 19, 2007.*
|
|
Line 129
|
RRSP income
• RRSP annuity payments received may be
eligible for pension income splitting.
|
|
Line 130
|
Scholarships and bursaries (other income)
• There is now an income exemption for
scholarships and bursaries awarded to students attending
elementary and secondary schools.
|
|
Lines 135–139
|
Self-employment income
• Long-haul truck drivers may be allowed to
deduct more than 50% of eligible meal expenses.
|
|
Net Income Deductions
|
|
|
Capital cost allowance
• Buildings acquired after March 18, 2007,
are eligible for an additional allowance at the rate of 6% if
they are used 90% or more for manufacturing or processing in
Canada, and at the rate of 2% if they are used 90% or more for
other non-residential purposes.*
• Machinery and equipment used in
manufacturing or processing and acquired after March 18, 2007,
and before 2009 qualify for a 50% straightline rate of
depreciation.*
• Assets acquired after March 18, 2007, that
satisfy the current description of Class 45 are depreciable at
the rate of 55%.*
|
|
Line 208
|
RRSP deduction
• Individuals may now contribute to RRSPs
until age 71 (instead of age 69).
|
|
Line 210
|
Deduction for elected split-pension amount
(NEW LINE)
• Beginning in 2007, individuals who receive
pension income that qualifies for the $2,000 pension income tax
amount may transfer up to one-half of this income to a spouse or
common-law partner. The allocated amount is deducted on Line 210
in computing the transferor’s income.
|
|
Line 213
|
Universal child care benefit (UCCB) repayment
(NEW LINE)
• Any repayment in 2007 of a UCCB that was
included in income in 2006 may be deducted on Line 213.
|
|
Line 214
|
Child care expenses
• Individuals who claim an amount for
children born in 1990 or later on Line 367 may qualify as a
supporting person.
• The net income threshold under which
certain dependants may be considered eligible children for the
purpose of the deduction increases to $9,600.
• Amounts paid for child care services to
individuals who claim an amount for children born in 1990 or
later on Line 367 are not qualifying child care expenses.
• Earned income for the purpose of
calculating the deduction includes certain apprenticeship
incentive grants.
|
|
Line 222
|
Deduction for CPP or QPP contributions on self-employment and
other earnings
• The maximum amount that may be deducted
increases to $1,989.90.
|
|
Line 223
|
Deduction for provincial parental insurance plan (PPIP) premiums
on self-employment income
• The maximum amount that may be deducted
increases to $189.39 (because of the rise in the maximum
insurable earnings from $57,000 to $59,000).
|
|
Line 224
|
Exploration and development expenses
• The resource allowance is no longer
deductible.
|
|
Line 229
|
Other employment expenses
• Long-haul truck drivers may be allowed to
deduct more than 50% of eligible meal expenses.
|
|
Line 235
|
Social benefits repayment
• The repayment threshold amount increases to
$63,511 for old age security benefits, and to $50,000 for
employment insurance benefits.
|
|
Taxable Income
|
|
Line 249
|
Security options deductions
• Gifts of public securities acquired through
an employer stock option arrangement made after March 18, 2007,
to eligible private foundations are eligible for an additional
50% stock option deduction.
|
|
Line 254
|
Capital gains deduction
• The lifetime capital gains deduction
increases from $500,000 to $750,000 for dispositions of
qualifying property occurring after March 18, 2007.
|
|
Federal Tax: Non-Refundable Tax Credits
|
|
Note:
For Lines 300 to 378, the tax credit rate is reduced from 15.25%
to 15%.
|
|
Line 300
|
Basic personal amount
• The amount increases to $9,600 (an
additional increase above indexation).
|
|
Line 301
|
Age amount
• The amount increases to $5,177, and the net
income threshold increases to $30,936.**
|
|
Line 303
|
Spouse or common-law partner amount
• The amount increases to $9,600 (an
additional increase above indexation).
• The threshold above which the dependant’s
net income must be taken into account is eliminated.
|
|
Line 305
|
Amount for an eligible dependant
• The amount increases to $9,600 (an
additional increase above indexation).
• The threshold above which the dependant’s
net income must be taken into account is eliminated.
• Under certain circumstances, the
restriction preventing an individual from making a claim where
he or she is required to pay support is eliminated.
|
|
Line 306
|
Amount for infirm dependants age 18 or older
• The amount increases to $4,019, and the net
income threshold increases to $9,721.**
|
|
Line 308
|
CPP or QPP contributions through employment
• The maximum contribution amount that may be
claimed increases to $1,989.90.
|
|
Line 310
|
CPP or QPP contributions on self-employment and other earnings
• The maximum amount that may be claimed
increases to $1,989.90.
|
|
Line 312
|
Employment insurance premiums
• The maximum amount that may be claimed is
reduced to $720 ($584 for Quebec residents).
|
|
Line 313
|
Adoption expenses
• The amount increases to $10,445.**
|
|
Line 314
|
Pension income amount
• The pension income inclusion from elected
split-pension income may be eligible for the $2,000 pension
income amount.
|
|
Line 315
|
Caregiver amount
• The amount increases to $4,019, and the net
income threshold increases to $17,745.**
|
|
Line 316
|
Disability amount (for self)
• The base amount, supplement amount, and
threshold for allowable child care and attendant care expenses
increase to $6,890, $4,019, and $2,354, respectively.**
|
|
Line 318
|
Disability amount transferred from a dependant
• The maximum amount that may be transferred
increases to $10,909.**
|
|
Line 323
|
Tuition, education, and textbook amounts
• A student enrolled at a foreign university
and taking courses over the Internet may claim a tuition credit
for fees paid to a foreign university.
|
|
Line 330
|
Medical expenses for self, spouse or common-law partner, and
dependent children born in 1990 or later
• The net income threshold increases to
$1,926.**
|
|
Line 331
|
Allowable amount of medical expenses for other dependants
• The net income threshold increases to
$1,926.**
|
|
Line 363
|
Canada employment amount
• The maximum Canada employment amount is
$1,000.
|
|
Line 364
|
Public transit passes amount
• The cost of weekly transit passes may
qualify for the credit.
• The cost of electronic payment cards may
qualify for the credit.
|
|
Line 365
|
Children’s fitness amount
(NEW LINE)
• Starting in 2007, a non-refundable tax
credit is available for eligible amounts paid by parents who
register a child in an eligible program of physical activity.
|
|
Line 367
|
Amount for children born in 1990 or later
(NEW LINE)
• Parents may claim $2,000 for each child who
is under age 18 on December 31, 2007, provided certain
conditions are met (maximum credit is $300 per child).
|
|
Line 375
|
Provincial parental insurance plan (PPIP) premiums paid
• The maximum amount an individual may claim
increases to $245.44 (because of the increase in maximum
insurable earnings from $57,000 to $59,000).
|
|
Line 376
|
PPIP premiums payable on employment income
• The maximum amount an individual may claim
increases to $245.44 (because of the increase in maximum
insurable earnings from $57,000 to $59,000).
|
|
Line 378
|
PPIP premiums payable on self-employment income
• The maximum amount an individual may claim
increases to $245.44 (because of the increase in maximum
insurable earnings from $57,000 to $59,000).
|
|
Line 412
|
Investment tax credit
• Investment tax credits may be available for
businesses that create new child care spaces.
• The deadline for flow-through mining
expenditures’ eligibility for investment tax credits is
extended.
|
|
Federal Tax Payable/Refundable
|
|
|
Federal tax calculation – Brackets and rates
• The lowest personal marginal tax rate is
reduced from 15.25% to 15%.
|
|
|
Minimum tax
• The minimum tax rate is reduced from 15.25%
to 15%.
• No adjustment is made in calculating the
adjusted taxable income for capital gains on gifts of eligible
securities to registered charities or other qualified donees
that are private foundations.
|
|
Line 421
|
CPP contributions payable on self-employment and other earnings
• The maximum amount payable by an individual
increases to $3,979.80.
|
|
Line 422
|
Social benefits repayment
• The threshold amount increases to $63,511
for old age security benefits, and to $50,000 for employment
insurance benefits.
|
|
Line 437
|
Total income tax deducted
• Individuals who elect to split pension
income (on Line 116) must also split the income tax deducted on
pension income.
|
|
Line 448
|
CPP overpayment
• The maximum contribution amount increases
to $1,989.90.
|
|
Line 450
|
Employment insurance overpayment
• The maximum contribution amount decreases
to $720 ($584 for Quebec residents).
|
|
Line 452
|
Refundable medical expense supplement
• The maximum supplement, minimum earning
threshold, and family net income threshold increase to $1,022,
$2,984, and $22,627, respectively.**
|
|
Line 453
|
Working income tax benefit
(NEW LINE)
• The working income tax benefit (WITB) is a
refundable tax credit payable to certain low-income individuals
who earn employment or business income. For 2007, the maximum
base amount for an individual who is single with no dependants
is $500 (for families, the maximum is $1,000). Disabled
individuals may also claim a supplement, up to a maximum of $250
for 2007. The maximum supplement increases to $500 if both the
claimant and his or her spouse or common-law partner are
disabled.
|
|
Administration
|
|
|
Instalments
• Beginning in 2008, the instalment threshold
amount increases to $3,000 ($1,800 for residents of Quebec).
|
|
|
CRA epass services
• Individuals may now use My Account to apply
for child benefits and set up a pre-authorized payment plan for
instalments.
|
Footnotes
* Under proposed legislation.
* Under proposed legislation.
* Under proposed legislation.
* Under proposed legislation.
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
**Amount(s) indexed on the basis of the annual increase in the consumer
price index (2.2% for 2007).
|