Thursday, March 6, 2008

Another nice tax surprise

After last week's realization that Ms. Loonie would owe $2,500 less than expected on her 2007 tax return, I've been on the lookout for other hidden gems in the income tax rules.

Well, faithful reader, you will be delighted to learn that I've found another unexpected tax credit for which I (and many other Canadians) will qualify: the Canada employment amount. This is a federal non-refundable tax credit for taxpayers who received employment income for the year. You can claim the lesser of $1,000 or your total employment income (lines 101 and 104 of your tax return).

I earned just a smidge over $1,000 in 2007, so I'll be claiming the full $1,000 credit. At a tax rate of 15%, this translates to an additional $150 in my pocket.

Given that I stopped commuting to work just after the public transit amount came into effect, it's nice to have one of these new credits actually apply to me.

Who doesn't love finding $150?

2 comments:

Big Cajun Man said...

Do you have active kids? If so, you get the up to $500 credit for kids in sporting activities.

Do you have a Safety Deposit Box? Remember that goes in Carrying Charges area.

Did you give to a charity? Maybe you forgot one?

Some ideas -c8j

Wooly Woman said...

I had no idea about this deduction, but I just checked and UFile had added it for me. Nice to find one of those hidden deductions.