We list the major changes below. For more details on these and other changes, see the areas outlined in red in this guide.

Employment Insurance - Throughout this guide, we refer to the new "Employment Insurance" (EI) program. These references also include the previous program, called "Unemployment Insurance" (UI).

Repayment of EI benefits (line 235) - The income level above which you may have to repay all or part of your EI benefits has been reduced to $48,750.

Disability amount (line 316) - If you are making a new application for this amount, we will now review your claim before we assess your return to determine whether you are eligible. Once approved, you will be able to claim this amount, as long as your circumstances do not change.

Line-by-line changes

This guide and return package includes the following income tax changes that have been announced, but were not law at the time of printing. If they become law as proposed, they will be effective for 1996, or as of the dates indicated.

Foreign property - There are new rules for reporting ownership of foreign property. See page 9 for details.

Child support payments (lines 128 and 220) - New rules, which do not affect your 1996 tax return, may apply to child support payable after April 30, 1997.

Registered pension plans (RPPs), registered retirement savings plans (RRSPs), and deferred profitsharing plans (DPSPs) - The latest allowable maturity date for your RPP (line 207), RRSP (line 208), or DPSP has changed.

Unused RRSP deduction room (line 208) - You can now carry forward indefinitely your unused RRSP deduction room accumulated after 1990.

Child care expenses (line 214) - You can claim expenses for a child under 16 at any time in the year. There are also new circumstances under which you can claim expenses for child care.

RRSP and registered retirement income fund (RRIF) administration fees (line 221) - You cannot deduct amounts you paid after March 5, 1996, for administration services for any RRSP or RRIF.

Amount for infirm dependant age 18 or older
(line 306) - The maximum amount you can claim has been increased to $2,353. In addition, the dependant's net income can now be up to $4,103, without reducing the amount of your claim. If you are claiming an amount on line 305 for a dependant, you may also be able to claim part of the line 306 amount for that dependant.

Education amount (line 322) - The monthly amount has been increased to $100.

Tuition fees and education amount transferred from a child (line 324) or spouse (line 326) - The transfer limit has been increased to $5,000.

Charitable donations (line 340) - The maximum amount you can claim has been increased to 50% of your net income, plus 50% of the taxable capital gains included in your taxable income from capital property you donated in the year. For deceased individuals, the limit for both the year of death and the year before death has been increased to 100% of net income.

Labour-sponsored funds tax credit (lines 413 and 414) - The calculation of the maximum credit has changed for shares acquired, or irrevocably subscribed to and paid for, after March 5, 1996.

Visually impaired persons can get information on services available to them, and can order publications in braille or large print, or on audio cassette or computer diskette, by calling 1-800-267-1267 weekdays between 8:15 a.m. and 5:00 p.m. (Eastern Time).

Direct Deposit

Why not have your income tax refund, your goods and services tax (GST) credit, and your Child Tax Benefit payments deposited directly into your account at a financial institution? For details, see page 37 of this guide.

Your opinion counts!

We review our publications every year. If you have any comments or suggestions that would help us improve them, we would like to hear from you. Please send your comments on our publications to:

Client Services Directorate
Revenue Canada
400 Cumberland Street
Ottawa ON K1A 0L5

La version française de cette publication est intitulée Guide d'impôt général 1996.