ARCHIVED CD 2007-024
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December 14, 2007 (Revised February 27, 2008)
SUBJECT: Federal, Provincial (excluding Quebec) and Territorial Personal Tax Credits -- Effective January 1, 2008
1. PURPOSE
1.1 The purpose of this directive is to provide information concerning changes to the federal, provincial (excluding Quebec) and territorial personal tax credits for the 2008 taxation year.
1.2 A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Who are you? - Public Service Employee" page of the Compensation Sector Web site.
2. BACKGROUND
2.1 Many of the personal tax credit amounts on the federal, provincial and territorial "Personal Tax Credits Return" (TD1) forms have been indexed for 2008. Indexing means that certain personal tax credit amounts will increase based on changes to the Consumer Price Index (CPI). For example, the federal indexing factor for 2008 is 1.9%. To calculate the indexed federal personal tax credit amounts for 2008, multiply the appropriate 2007 personal tax credit amounts by 1.019.
3. POLICY
3.1. FEDERAL PERSONAL TAX CREDITS
The Canada Revenue Agency (CRA) has announced that the following personal tax credit amounts have been indexed by 1.9% for the 2008 taxation year. The 2008 TD1 form has been revised to include these changes to the personal tax credit amounts. This form will be available at district taxation offices and at the CRA Web site at: TD-e
In the Economic Statement announced on October 30, 2007, the basic personal amount, spouse or common-law partner amount and the amount for an eligible dependent were retroactively set at $9,600 (formerly $8,929) effective January 1, 2007. These amounts will also be used for the current 2008 year. All other indexed federal personal tax credit amounts have been increased by the federal indexing factor of 1.9%.
Federal Personal Tax Credit Amounts:
| Amount Effective July 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $8,929 | $9,600 |
| Child amount | $2,000 | $2,038 |
| Age amount | maximum of $5,177 | maximum of $5,276 |
| Disability amount | maximum of $6,890 | maximum of $7,021 |
| Spouse or common-law partner amount | maximum of $8,929 | maximum of $9,600 |
| Amount for an eligible dependant | maximum of $8,929 | maximum of $9,600 |
| Caregiver amount | maximum of $4,019 | maximum of $4,095 |
| Amount for infirm dependants age 18 or older | maximum of $4,019 | maximum of $4,095 |
Non-indexed tax credits are the total of lines 4, 5, 11 and 12 of the TD1 form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9 and 10 of the TD1 form.
3.2. PROVINCIAL AND TERRITORIAL PERSONAL TAX CREDITS
Effective January 1, 2008, the following non-refundable personal tax credit amounts can be claimed by employees based on their province/territory of employment. Some personal tax credit amounts have been indexed for the 2008 taxation year. Each provincial and territorial TD1 form will be revised to include these changes to the personal tax credit amounts. These forms will be available at district taxation offices and at the CRA Web site at: TD-e
Newfoundland and Labrador
| Amount Effective July 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $7,558 | $7,566 |
| Age amount | Maximum of $3,552 | Maximum of $3,556 |
| Disability amount | Maximum of $5,100 | maximum of $5,106 |
| Spouse or common-law partner amount | Maximum of $6,177 | Maximum of $6,183 |
| Amount for an eligible dependant | Maximum of $6,177 | Maximum of $6,183 |
| Caregiver amount | maximum of $2,401 | maximum of $2,402 |
| Amount for infirm dependants age 18 or older | maximum of $2,401 | maximum of $2,402 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NL form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NL form.
Prince Edward Island
| Amount Effective July 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Disability amount | Maximum of $5,400 | Maximum of $6,890 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1PE form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1PE form.
Nova Scotia
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $7,481 | $7,731 |
| Age amount | Maximum of $3,653 | Maximum of $3,775 |
| Pension income amount | Maximum of $1,035 | Maximum of $1,069 |
| Disability amount | Maximum of $4,441 | Maximum of $4,596 |
| Spouse or common-law partner amount | Maximum of $6,352 | Maximum of $6,565 |
| Amount for an eligible dependant | Maximum of $6,352 | Maximum of $6,565 |
| Caregiver amount | Maximum of $4,320 | Maximum of $4,465 |
| Amount for infirm dependants age 18 or older | maximum of $2,468 | maximum of $2,551 |
Non-indexed tax credits are the total of lines 4, 10 and 11 of the TD1NS form. Indexed tax credits are the total of lines 1, 2, 3, 5, 6, 7, 8 and 9 of the TD1NS form.
New Brunswick
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $8,239 | $8,395 |
| Age amount | Maximum of $4,023 | Maximum of $4,099 |
| Disability amount | Maximum of $6,670 | Maximum of $6,797 |
| Spouse or common-law partner amount | Maximum of $6,996 | Maximum of $7,129 |
| Amount for an eligible dependant | Maximum of $6,996 | Maximum of $7,129 |
| Caregiver amount | Maximum of $3,891 | Maximum of $3,965 |
| Amount for infirm dependants age 18 or older | Maximum of $3,891 | Maximum of $3,965 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NB form.
Alberta
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $15,435 | $16,161 |
| Age amount | Maximum of $4,301 | Maximum of $4,503 |
| Pension income amount | $1,189 | $1,244 |
| Tuition and education amounts (full-time) | $475 | $628 |
| Tuition and education amounts (part-time) | $143 | $188 |
| Disability amount | maximum of $7,131 | maximum of $7,466 |
| Spouse or common-law partner amount | Maximum of $15,435 | Maximum of $16,161 |
| Amount for an eligible dependant | Maximum of $15,435 | Maximum of $16,161 |
| Caregiver amount | Maximum of $4,160 | Maximum of $4,355 |
| Amount for infirm dependants age 18 or older | Maximum of $4,160 | Maximum of $4,355 |
Non-indexed tax credits are the total of lines 10 and 11 of the TD1AB form. Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8 and 9 of the TD1AB form.
Ontario
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $8,553 | $8,681 |
| Age amount | Maximum of $4,176 | Maximum of $4,239 |
| Disability amount | maximum of $6,910 | Maximum of $7,014 |
| Pension income amount | $1,183 | $1,201 |
| Tuition and education amounts (full-time) | $461 | $468 |
| Tuition and education amounts (part-time) | $138 | $140 |
| Spouse or common-law partner amount | Maximum of $7,262 | Maximum of $7,371 |
| Amount for an eligible dependant | Maximum of $7,262 | Maximum of $7,371 |
| Caregiver amount | Maximum of $4,031 | Maximum of $4,092 |
| Amount for infirm dependants age 18 or older | Maximum of $4,031 | Maximum of $4,091 |
Non-indexed tax credits are the total of lines 10 and 11 of the TD1ON form. Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8 and 9 of the TD1ON form.
Saskatchewan
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $8,778 | $8,945 |
| Age amount | Maximum of $4,156 | Maximum of $4,235 |
| Senior supplementary amount | $1,097 | $1,118 |
| Disability amount | maximum of $6,890 | maximum of $7,021 |
| Spouse or common-law partner amount | Maximum of $8,778 | Maximum of $8,945 |
| Amount for an eligible dependant | Maximum of $8,778 | Maximum of $8,945 |
| Child amount | $2,743 | $2,795 |
| Caregiver amount | Maximum of $4,019 | Maximum of $4,095 |
| Amount for infirm dependants age 18 or older | Maximum of $4,019 | Maximum of $4,095 |
Non-indexed tax credits are the total of lines 3, 4, 11a and 11b of the TD1SK form. Indexed tax credits are the total of lines 1, 2a, 2b, 5, 6, 7, 8, 9 and 10 of the TD1SK form.
Manitoba
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $7,834 | $8,034 |
| Spouse or common-law partner amount | Maximum of $6,482 | Maximum of $8,034 |
| Amount for an eligible dependant | Maximum of $6,482 | Maximum of $8,034 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1MB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1MB form.
British Columbia
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $9,027 | $9,189 |
| Age amount | Maximum of $4,048 | Maximum of $4,121 |
| Disability amount | maximum of $6,770 | maximum of $6,892 |
| Spouse or common-law partner amount | Maximum of $7,729 | Maximum of $7,868 |
| Amount for an eligible dependant | Maximum of $7,729 | Maximum of $7,868 |
| Caregiver amount | Maximum of $3,949 | Maximum of $4,021 |
| Amount for infirm dependants age 18 or older | Maximum of $3,949 | Maximum of $4,021 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1BC form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1BC form.
Yukon
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $8,929 | $9,600 |
| Age amount | Maximum of $5,177 | maximum of $5,276 |
| Disability amount | maximum of $6,890 | maximum of $7,021 |
| Spouse or common-law partner amount | Maximum of $7,581 | maximum of $9,600 |
| Amount for an eligible dependant | Maximum of $7,581 | maximum of $9,600 |
| Caregiver amount | Maximum of $4,019 | maximum of $4,095 |
| Amount for infirm dependants age 18 or older | Maximum of $4,019 | maximum of $4,095 |
| Effective July 1, 2007, a new Child tax credit of $2,000 was introduced for the Yukon territory. The Yukon TD1 form was not revised effective July 1, 2007, to include this tax credit. Effective January 1, 2008, this tax credit was increased to $2,038 and added to the 2008 Yukon TD1 form on line 2. Due to the Child tax credit being added to the Yukon TD1 form, the line numbers for the remaining tax credits starting with the Age amount have been renumbered.
| Non-indexed tax credits are the total of lines 4, 5, 11 and 12 of the TD1YT form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9 and 10 of the TD1YT form.
Northwest Territories
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $12,125 | $12,355 |
| Age amount | Maximum of $5,931 | maximum of $6,044 |
| Disability amount | maximum of $9,833 | maximum of $10,020 |
| Spouse or common-law partner amount | Maximum of $12,125 | maximum of $12,355 |
| Amount for an eligible dependant | Maximum of $12,125 | maximum of $12,355 |
| Caregiver amount | Maximum of $4,019 | maximum of $4,095 |
| Amount for infirm dependants age 18 or older | Maximum of $4,019 | maximum of $4,095 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NT. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NT.
Nunavut
| Amount Effective January 1, 2007 |
Amount Effective January 1, 2008 |
|
|---|---|---|
| Basic personal amount | $11,149 | $11,360 |
| Age amount | Maximum of $8,361 | maximum of $8,520 |
| Disability amount | maximum of $11,149 | maximum of $11,360 |
| Spouse or common-law partner amount | Maximum of $11,149 | maximum of $11,360 |
| Amount for an eligible dependant | Maximum of $11,149 | maximum of $11,360 |
| Caregiver amount | Maximum of $4,019 | maximum of $4,095 |
| Amount for infirm dependants age 18 or older | Maximum of $4,019 | maximum of $4,095 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NU form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NU form.
4. PROCEDURES/INSTRUCTIONS
4.1 Compensation systems are programmed to automatically reflect the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant.
Employees who wish to change their personal tax credit amounts must complete both the federal and the applicable provincial or territorial TD1 forms. An employee who changes province or territory of employment or moves to another province or territory should complete the appropriate provincial or territorial TD1 form. These forms are available from CRA tax services offices and at the following Internet address: TD-e
5. INQUIRIES
5.1 Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
B. Fortin
Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA 9007-7, 9007-8
- Date modified: