CTP13_Chapter_04

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Unformatted text preview: Amount if infirm – Maximum = $1,656 or $1,962 (If FCA) Copyright © 2014, Clarence Byrd Inc. 11 Canadian Tax Principles 2013 Personal Tax Credits 2013 • Amount For Eligible Dependant ITA 118(1)(b) – Same amount as spouse or common-law partner Copyright © 2014, Clarence Byrd Inc. 12 Canadian Tax Principles Amount For Eligible Dependant • Conditions: you are single, divorced, separated, or widowed and Conditions: you supported a dependant: you • • • • • who is under 18 (unless parent, grandparent, or infirm) living with the individual related by blood, marriage, or adoption resident of Canada (except child) dependent on individual for support Copyright © 2014, Clarence Byrd Inc. 13 Canadian Tax Principles 2013 Personal Tax Credits • Child Tax Credit Child – ITA 118(1)(b.1) ITA • [(15%)($2,234)] = $335 – Gets The $2,040 Family Caregiver Amount if infirm • [(15%)($4,274)] = $641 – For each child under 18 at end of year – No income threshold – Can take eligible dependant and this credit for the same Can child. child. – If eligible dependant, take family caregiver only for child If credit credit Copyright © 2014, Clarence Byrd Inc. 14 Canadian Tax Principles Caregiver • Conditions – Maintain Household With Dependant Over 17 – Resident Of Canada (Unless Child Or Grandchild) – Infirm (Unless Parent Or Grandparent 65 Or Older) – Not Available If Eligible Dependant Credit Available Copyright © 2014, Clarence Byrd Inc. 15 Canadian Tax Principles Caregiver • Value – [(15%)($4,490)] • Maximum = $674 – Gets The Family Caregiver Amount if infirm • [(15%)($4,490 + $2,040)] to maximum of $980 – Reduced By 15% Of Dependant’s Income In Excess Of Income $15,334 $15,334 Copyright © 2014, Clarence Byrd Inc. 16 Canadian Tax Principles Infirm Dependant Over 17 Infirm – ITA 118(1)(d) • Dependants: Dependants: – Child – Grandchild – Parent Parent – Grandparent Grandparent – Brother – Sister – – – – – Sister Aunt Uncle Niece Nephew Nephew [ITA 118(6)] [ITA Copyright © 2014, Clarence Byrd Inc. 17 Canadian Tax Principles Infirm Dependant Over 17 Infirm - ITA 118(1)(d) ITA • Conditions – Reach 18 Before End Of Year – Mentally Or Physically Infirm Mentally • (15%)($6,530) = $980 • Always includes the Family Caregiver Amount – Not Available If Eligible Dependant Or Caregiver Credits Not Available Available Copyright © 2014, Clarence Byrd Inc. 18 Canadian Tax Principles Age - ITA 118(2) • • • Reach 65 In The Year $1,028 = [(15%)($6,854)] Reduction – 15% Of Income > $34,562 – $80,255 - $34,562 = $45,693 – [($45,693)(15%)] = $ 6,854 Copyright © 2014, Clarence Byrd Inc. 19 Canadian Tax Principles Pension Income – ITA 118(3) • Amount = 15% Of 1st $2,000 = $300 Copyright © 2014, Clarence Byrd Inc. 20 Canadian Tax Principles Pension Income – ITA 118(3) • Qualifying Amounts – Age 65 Or Older At End Of Year • Most Non-Government – < Age 65 At End Of Year • Life An...
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This note was uploaded on 09/19/2013 for the course COMM 355 taught by Professor Trancheung during the Fall '10 term at The University of British Columbia.

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