Department of Finance personal tax relief updates

* Increasing the basic personal amount-the amount that an individual can earn without paying federal personal income tax-so that it grows each and every year and remains above previously legislated levels in 2006 and 2007. The basic personal amount will be $8,929 in 2007 and will continue to increase incrementally, reaching at least $10,000 in 2009.
* Permanently reducing the lowest personal income tax rate from 16 per cent to 15.5 per cent effective July 1, 2006.
* Providing all Canadians a break on work-related expenses under the new Canada Employment Credit. This measure took effect July 1, 2006, and recognizes the cost of work-related expenditures such as home computers, bus passes, uniforms and supplies.
* Creating a Children’s Fitness Tax Credit to cover eligible fees up to $500 for enrolment in a physical activity program, effective January 1, 2007.
This tax incentive Encourages Parents to Take Advantage of the Children's Fitness Tax Credit http://www.fin.gc.ca/news07/06-002e.html
* Providing students with a new textbook tax credit, effective January 1, 2006, to provide better tax recognition for the cost of textbooks for students.
Canada’s Tax Fairness Plan, announced on October 31, 2006, built on the tax cuts announced in the budget by proposing significant positive measures to help Canadian seniors by:
*Increasing the age credit amount by $1,000 retroactive to January 1, 2006.
* Introducing income splitting for pensioners to increase the rewards from retirement saving effective as of the 2007 taxation year.

These tax relief excerpts are from the Department of Finance. If you’d like more details you can select the following link: http://www.fin.gc.ca/news06/06-088e.html