| It's that time of year again, where Canadians must file | | | | after January 27, 2009 that are in excess of $1,000 to |
| their personal income tax returns for the 2009 year by | | | | a maximum of $10,000. You should consult your |
| no later than April 30, 2010. There have been several | | | | Chartered Accountant in Toronto to see whether you |
| new tax breaks for the 2009 year that you should | | | | are eligible for this tax credit. |
| know about. These new tax breaks will increase your | | | | #4. Home Buyers Plan |
| tax refund! | | | | The maximum amount that you can take out of your |
| #1. Basic Personal Amount | | | | RSP's tax free to purchase a home has been |
| The basic personal amount has increased to $10,320. | | | | increased to $25,000 for the 2009 year. This tax |
| This means that the first $10,320 of income is exempt | | | | incentive is know as the home buyer's plan. However, |
| from tax. | | | | you must repay the entire amount that you initially |
| #2. Spouse or Common-Law Partner Amount | | | | withdrew to your RSP over a period of time. The |
| The spouse or common law partner amount has | | | | annual repayment is equal to 1/15th of the amount |
| increased to $10,320. This tax credit is available to the | | | | initially withdrawn. You do not have to make a |
| higher income spouse / common law partner. | | | | repayment in the year of withdrawal nor the following |
| However, it is reduced by the net income of your | | | | year. |
| spouse / common law partner. For example, if your | | | | #5. First Time Home Buyer's Tax Credit |
| spouse has a net income of $3,000, then the spouse | | | | The first time home buyer's tax credit of $5,000 is |
| amount available to you to claim as a credit is $7,320. | | | | available to first time home buyers that intend to live in |
| #3. Home Renovation Tax Credit | | | | the home that they purchase. The credit is only |
| You can claim a tax credit for renovations made to | | | | available for homes purchased after January 27, 2009. |
| your home. The tax credit applies to renovations made | | | | |