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CD 2006-036
This document has been modified. The changes are identified by a vertical line "|".
Revision (|)
December 6, 2006 (Revised January 15, 2007)
SUBJECT: Federal, Provincial and Territorial Personal Tax Credits (excluding Quebec) -- Effective January 1, 2007
1. PURPOSE
1.1 The purpose of this directive is to provide information concerning changes to the federal, provincial and territorial personal tax credits (excluding Quebec) for the 2007 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 2007. 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 2007 is 2.2%. To calculate the indexed federal personal tax credit amounts for 2007, multiply the appropriate 2006 personal tax credit amounts by 1.022.
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 2.2% for the 2007 taxation year. The 2007 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
| The basic personal amount of $8,639 has been indexed by 2.2% and will be further increased by $100 for the 2007 tax year. The calculation for the basic personal amount is as follows:
| $8,639 x 1.022 + $100 = $8,929.
| The federal spouse or common-law partner amount and the amount for an eligible dependent of $7,335 has been indexed by 2.2% and will be further increased by $85 for the 2007 tax year. The calculation for these tax credits is as follows:
| $7,335 x 1.022 + $85 = $7,581.
| The age amount of $4,066 has been increased to $5,066 effective January 2006 and has been indexed by 2.2% for the 2007 tax year. The calculation for the age amount is as follows:
| $4,066 + $1,000 x 1.022 = $5,177.
| All other indexed federal personal tax credit amounts have been increased by the federal indexing factor of 2.2%.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,639 | $8,929 |
| Age amount | maximum of $4,066 | Maximum of $5,177 |
| Disability amount | maximum of $6,741 | Maximum of $6,890 |
| Spouse or common-law partner amount | maximum of $7,335 | Maximum of $7,581 |
| Amount for an eligible dependant | maximum of $7,335 | Maximum of $7,581 |
| Caregiver amount | maximum of $3,933 | Maximum of $4,019 |
| Amount for infirm dependants age 18 or older | maximum of $3,933 | Maximum of $4,019 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1 form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, and 9 of the TD1 form.
3.2 PROVINCIAL AND TERRITORIAL PERSONAL TAX CREDITS
Effective January 1, 2007, 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 2007 taxation year. Each provincial and territorial TD1 form has been 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
There are no changes to the personal tax credit amounts for the provinces of Newfoundland and Labrador and Prince Edward Island.
Nova Scotia
Nova Scotia has announced that the following personal tax credits will be indexed by 3.46% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $7,231 | $7,481 |
| Age amount | Maximum of $3,531 | Maximum of $3,653 |
| Pension income amount | maximum of $1,000 | Maximum of $1,035 |
| Disability amount | Maximum of $4,293 | Maximum of $4,441 |
| Spouse or common-law partner amount | Maximum of $6,140 | Maximum of $6,352 |
| Amount for an eligible dependant | Maximum of $6,140 | Maximum of $6,352 |
| Caregiver amount | maximum of $4,176 | Maximum of $4,320 |
| Amount for infirm dependants age 18 or older | maximum of $2,386 | maximum of $2,468 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1NS form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1NS form.
New Brunswick
New Brunswick has announced that the following personal tax credits will be indexed by 2.2% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,061 | $8,239 |
| Age amount | Maximum of $3,936 | Maximum of $4,023 |
| Disability amount | maximum of $6,526 | Maximum of $6,670 |
| Spouse or common-law partner amount | Maximum of $6,845 | Maximum of $6,996 |
| Amount for an eligible dependant | Maximum of $6,845 | Maximum of $6,996 |
| Caregiver amount | Maximum of $3,807 | Maximum of $3,891 |
| Amount for infirm dependants age 18 or older | maximum of $3,807 | Maximum of $3,891 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1NB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1NB form.
Alberta
Alberta has announced that the following personal tax credits will be indexed by 3.6% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $14,999 | $15,435 |
| Age amount | Maximum of $4,152 | Maximum of $4,301 |
| Pension income amount | $1,147 | $1,189 |
| Tuition and education amounts (full-time) | $459 | $475 |
| Tuition and education amounts (part-time) | $138 | $143 |
| Disability amount | maximum of $6,883 | maximum of $7,131 |
| Spouse or common-law partner amount | Maximum of $14,999 | Maximum of $15,435 |
| Amount for an eligible dependant | Maximum of $14,999 | Maximum of $15,435 |
| Caregiver amount | Maximum of $4,015 | Maximum of $4,160 |
| Amount for infirm dependants age 18 or older | Maximum of $4,015 | Maximum of $4,160 |
Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 of the TD1AB form.
Ontario
Ontario has announced that the following personal tax credits will be indexed by 2.1% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,377 | $8,553 |
| Age amount | Maximum of $4,090 | Maximum of $4,176 |
| Pension income amount | $1,158 | $1,183 |
| Tuition and education amounts (full-time) | $451 | $461 |
| Tuition and education amounts (part-time) | $135 | $138 |
| Disability amount | maximum of $6,768 | maximum of $6,910 |
| Spouse or common-law partner amount | Maximum of $7,113 | Maximum of $7,262 |
| Amount for an eligible dependant | Maximum of $7,113 | Maximum of $7,262 |
| Caregiver amount | Maximum of $3,948 | Maximum of $4,031 |
| Amount for infirm dependants age 18 or older | Maximum of $3,948 | Maximum of $4,031 |
Indexed tax credits are the total of lines 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 of the TD1ON form.
Saskatchewan
Saskatchewan has announced that the following personal tax credits will be indexed by 2.2% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,589 | $8,778 |
| Age amount | Maximum of $4,066 | Maximum of $4,156 |
| Senior supplementary amount | $1,074 | $1,097 |
| Disability amount | maximum of $6,741 | maximum of $6,890 |
| Spouse or common-law partner amount | Maximum of $8,589 | Maximum of $8,778 |
| Amount for an eligible dependant | Maximum of $8,589 | Maximum of $8,778 |
| Child amount | $2,684 | $2,743 |
| Caregiver amount | Maximum of $3,933 | Maximum of $4,019 |
| Amount for infirm dependants age 18 or older | Maximum of $3,933 | Maximum of $4,019 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1SK form. Indexed tax credits are the total of lines 1, 2a, 2b, 5, 6, 7, 8, 9, 10, 11a and 11b of the TD1SK form.
Manitoba
Manitoba has announced that the following personal tax credit will be revised for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $7,734 | $7,834 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1MB form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1MB form.
British Columbia
British Columbia has announced that the following personal tax credits will be indexed by 1.9% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,858 | $9,027 |
| Age amount | Maximum of $3,972 | Maximum of $4,048 |
| Disability amount | maximum of $6,644 | maximum of $6,770 |
| Spouse or common-law partner amount | Maximum of $7,585 | Maximum of $7,729 |
| Amount for an eligible dependant | Maximum of $7,585 | Maximum of $7,729 |
| Caregiver amount | Maximum of $3,877 | Maximum of $3,949 |
| Amount for infirm dependants age 18 or older | Maximum of $3,876 | Maximum of $3,949 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1BC form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1BC from.
Yukon
Yukon has announced that the following personal tax credits will be indexed by 2.2% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $8,328 | $8,929 |
| Age amount | Maximum of $4,066 | Maximum of $5,177 |
| Disability amount | maximum of $6,741 | maximum of $6,890 |
| Spouse or common-law partner amount | Maximum of $7,071 | Maximum of $7,581 |
| Amount for an eligible dependant | Maximum of $7,071 | Maximum of $7,581 |
| Caregiver amount | Maximum of $3,933 | Maximum of $4,019 |
| Amount for infirm dependants age 18 or older | Maximum of $3,933 | Maximum of $4,019 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1YT form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1YT form.
Northwest Territories
The Northwest Territories has announced that the following personal tax credits will be indexed by 2.2% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $11,864 | $12,125 |
| Age amount | Maximum of $5,803 | Maximum of $5,931 |
| Disability amount | maximum of $9,621 | maximum of $9,833 |
| Spouse or common-law partner amount | Maximum of $11,864 | Maximum of $12,125 |
| Amount for an eligible dependant | Maximum of $11,864 | Maximum of $12,125 |
| Caregiver amount | Maximum of $3,933 | Maximum of $4,019 |
| Amount for infirm dependants age 18 or older | Maximum of $3,933 | Maximum of $4,019 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1NT. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1NT.
Nunavut
Nunavut has announced that the following personal tax credits will be indexed by 2.2% for 2007.
| Amount Effective January 1, 2006 |
Amount Effective January 1, 2007 |
|
|---|---|---|
| Basic personal amount | $10,909 | $11,149 |
| Age amount | Maximum of $8,181 | Maximum of $8,361 |
| Disability amount | maximum of $10,909 | maximum of $11,149 |
| Spouse or common-law partner amount | Maximum of $10,909 | Maximum of $11,149 |
| Amount for an eligible dependant | Maximum of $10,909 | Maximum of $11,149 |
| Caregiver amount | Maximum of $3,933 | Maximum of $4,019 |
| Amount for infirm dependants age 18 or older | Maximum of $3,933 | Maximum of $4,019 |
Non-indexed tax credits are the total of lines 3 and 4 of the TD1NU form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 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
Acting Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA 9007-7, 9007-8
