TORONTO, March 24 /CNW/ -
- In October 2007, the Federal Government retroactively changed the
lowest tax rate to 15 percent and increased the personal amount. It
means most taxpayers have overpaid their income taxes. For example,
if your taxable income is more than $37,178, the change in the tax
rate will mean a tax savings of $186.
- Families will benefit from a new $2,000 Child Tax Credit for each
child under the age of 18 at the end of 2007. This will result in a
federal tax saving of $300 per child. And if one parent cannot use
the entire amount to lower their tax payable, the unused amount can
be transferred to a spouse or common-law partner.
- This is the first year parents can claim the Children's Fitness
Amount. The non-refundable credit is worth up to $500 for children
under the age of 16 enrolled in an eligible program of physical
activity. Not every program meets the eligibility guidelines so you
need to ensure you know the requirements. Make sure you keep your
receipts. Disabled children will also qualify for the credit if they
are under 18.
- Starting with the 2007 tax return, seniors will be allowed to split
up to half of their eligible pension income with a spouse or common-
law partner. Income splitting will allow some seniors to take
advantage of a significant tax break. In the situation where the
lower-income spouse has very little income, the tax savings will be
- The last Federal Budget increased the age limit to 71 from 69 for
Registered Retirement Savings Plans.
- The eligibility rules for the Transit Pass Credit have been expanded
to include new electronic fare products and weekly passes purchased
over a period of four consecutive weeks. Remember to keep your
receipts in order to claim this credit.
- The rules for Registered Education Saving Plans (RESPs) have changed
for this year. Designed to help save for a child's post-secondary
education, the RESP amount has been raised to $50,000 lifetime
contribution. There are also no longer any annual limits on RESP
contribution. Canada Education Savings Grant (CESG) per year has been
increased from $400 to $500.
A local H&R Block tax associate can talk about other changes to your 2007
About H&R Block Canada
H&R Block Canada prepares nearly two million tax returns annually, making
it Canada's leading tax preparation firm. Headquartered in Calgary, Alberta,
the company serves Canadian taxpayers in more than 1,000 offices across the
country. H&R Block Canada Inc. is a subsidiary of H&R Block, Inc., a
diversified company with subsidiaries providing a wide range of financial
products and services. Additional information about H&R Block Canada is
available at 1-800-HRBLOCK or visit www.hrblock.ca for more tax tips.
For further information:
For further information: Tina Quelch, Calador Communications, (416)