Fact sheet

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The Government of Canada has introduced a wide range of income tax relief measures to help you save on your taxes. Also, find out about our quick, easy, and secure electronic services.

Lowest tax rate – The lowest tax rate for 2008 is 15%. This rate also applies when calculating federal non-refundable tax credits.

Amount for children born in 1991 or later – You may be able to claim $2,038 for each of your or your spouse's or common-law partner's children if they lived with you throughout 2008 and were under the age of 18 at the end of the year.

Children's fitness amount – You may be able to claim up to $500 in eligible fees paid in 2008 to register each of your or your spouse's or common-law partner's children in a prescribed program of physical activity.

Northern residents deductions – For 2008, the residency deduction has increased to $8.25 per day if you are entitled to only the basic residency amount, or $16.50 per day if you are entitled to both the basic and the additional residency amounts.

Pension income splitting – Individuals who received eligible pension income in the year may be able to allocate up to half of that income to their spouse or common-law partner. To make this election, individuals must complete Form T1032, Joint Election to Split Pension Income.

Public transit amount – Individuals can claim the cost of monthly or longer duration public transit passes for travel within Canada. The passes must permit unlimited travel on local buses, streetcars, subways, commuter trains or buses, and local ferries. The cost of shorter duration passes can also be claimed if each pass entitles the user to unlimited travel for an uninterrupted period of at least five days and the user purchases enough of these passes so that the user is entitled to unlimited travel for at least 20 days in any 28-day period. Individuals can also claim the cost of electronic payment cards when used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days.

Registered Retirement Income Funds (RRIF) withdrawals – Under proposed changes, the required minimum RRIF withdrawal amount was reduced by 25 per cent for 2008. This measure applies to all RRIF holders, regardless of age. Individuals who opt to make a re-contribution can do this up to March 1, 2009, or 30 days after the proposed legislative changes are enacted by Parliament, whichever is later. Re-contributions are deductible for the 2008 tax year.

Tradesperson's tool deduction – On their 2008 income tax returns, employed tradespersons (including apprentice mechanics) may be able to claim a deduction of up to $500 based on the cost of eligible tools in excess of $1,019 that they acquired during 2008.

Working Income Tax Benefit (WITB) – When filing their income tax returns, individuals and families with low incomes may be able to claim the WITB, which includes a supplement for individuals who are entitled to the disability tax credit. Eligible individuals and families can also apply for advance payment of up to one half of their estimated 2009 WITB using Form RC201, Working Income Tax Benefit Advance Payments Application for 2009.

To ensure the best service possible, it is very important for the Canada Revenue Agency (CRA) to have, on file, your current mailing address and financial account information.

The Government has also introduced the following measures to help Canadians:

Apprenticeship Incentive Grant – For information, go to www.servicecanada.gc.ca/apprenticeship.

Registered disability savings plan (RDSP) – The deadline for opening an RDSP, making contributions and applying for the matching grant and the income-tested bond for the 2008 contribution year has been extended to March 2, 2009 from December 31, 2008. The 2009 RDSP contribution year will begin March 3, 2009.

Remember to file your income tax return before the deadline at midnight on April 30, 2009. Tax returns can be submitted to the CRA electronically using NETFILE or EFILE, or by phone using TELEFILE, your return will be processed faster and if you are entitled to a refund, you will receive it earlier. If you are filing a paper return, mail it to the CRA using the envelope included in your tax package.

For more information on tax topics, go to www.canada.gc.ca/taxinfo.

This document is also available for download in PDF format.

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Date modified:

2014-12-03