Did you know that February 29, 2008 will be the final day to make RRSP contributions for 2007?
Did you know you can split pension income with your
spouse?
50% of eligible
pension income can now be split with your spouse/common-law partner. Advantages
include shifting income to a lower tax bracket, reducing the clawback of Old
Age Security and the Age Amount Credit and, additional access to the $2,000
pension credit.
Did you know that you can get a tax credit for all
your children under the age of 18?
You or your
spouse/common-law partner can now get a $2,000 tax credit for each child who
was under 18 years of age at the end of the year.
Did you know that you can get a tax credit for
enrolling your children in fitness programs?
You can claim,
up to a maximum of $500 per child, the fees paid in 2007 that relate to the
cost of registering your or your spouse/common law partner’s child in a
prescribed program of physical activity. The child must have been under 16
years of age at the beginning of the year.
Did you know you can now contribute to your RRSP
account until the age of 71?
The maturity
age of RRSP’s has been increased from 69 to 71 years of age, giving you a
couple more years to save for your retirement.
Did you know that you can now contribute $50,000 to
each child’s RESP account?
You are now
able to contribute $50,000 to save for your child’s post secondary education. The
previous annual RESP contribution limit of $4,000 has been eliminated. In
addition to your own contributions, you can receive up to $500 per year in the
form of Canada Education Saving Grants.
Did you know that starting in 2008 you will be able to
contribute to a Registered Disability Savings Plan?
Effective 2008,
families of disabled individuals will be able to contribute up to $200,000 to a
Registered Disability Savings Plan (RDSP). The plan will mirror the current
RESP plan, except that the contributions will belong to the beneficiary, and
not the contributor. Along with family contributions, the RDSP will qualify for
Canada Disability Savings Grants; and in certain circumstances, the Canada
Disability Savings Bonds.
Did you know that low income individuals and families
may now qualify for a REFUNDABLE Working Income Tax Credit?
All individuals
with Employment or Business Income in excess of $3,000 will qualify for a 20%
refundable tax credit (maximum annual credit of $500 for individuals with no
dependents and $1,000 for families). The credit will be reduced on income in
excess of $9,500 for individuals with no dependents and $14,500 for families.
Fernando Catala, CMA, is a supervisor with Wolrige
Mahon LLP, Chartered Accountants in Vancouver, BC.
