ARCHIVED CD 2009-031
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December 15, 2009
SUBJECT: Federal, Provincial (excluding Quebec) and Territorial Personal Tax Credits -- Effective January 1, 2010
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 2010 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 2010. 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 2010 is 0.6%. To calculate the indexed federal personal tax credit amounts for 2010, multiply the appropriate 2009 personal tax credit amounts by 1.006.
3. POLICY
3.1. FEDERAL PERSONAL TAX CREDITS
3.2 The Canada Revenue Agency (CRA) has announced that the following personal tax credit amounts have been indexed by 0.6% for the 2010 taxation year. They also have announced that the basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant will be set at $10,382, effective January 1, 2010. The 2010 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
| Federal Personal Tax Credit amounts (indexing factor is 0.6%) | ||
|---|---|---|
| Amount effective in 2009 | Amount effective January 1, 2010 | |
| Basic personal amount | $10,375 | $10,382 |
| Child amount | $2,089 | $2,101 |
| Age amount | maximum of $6,658 | maximum of $6,446 |
| Disability amount | maximum of $7,196 | maximum of $7,239 |
| Spouse or common-law partner amount |
maximum of $10,375 | maximum of $10,382 |
| Amount for an eligible dependent |
maximum of $10,375 | maximum of $10,382 |
| Caregiver amount | maximum of $4,198 | maximum of $4,223 |
| Amount for infirm dependents age 18 or older |
maximum of $4,198 | maximum of $4,223 |
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.
3.3. PROVINCIAL AND TERRITORIAL PERSONAL TAX CREDITS
Effective January1,2010, 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 2010 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
| Provincial Personal Tax Credit amounts (indexing factor is 0.7%) | ||
|---|---|---|
| Amount effective in 2009 | Amount effective January 1, 2010 | |
| Basic personal amount | $7,778 | $7,833 |
| Age amount | maximum of $3,655 | maximum of $3,681 |
| Disability amount | $5,249 | $5,285 |
| Spouse or common-law partner amount |
maximum of $6,356 | maximum of $6,400 |
| Amount for an eligible dependant |
maximum of $6,356 | maximum of $6,400 |
| Caregiver amount | $2,470 | $2,487 |
| Infirm dependent amount | $2,470 | $2,488 |
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.
Nova Scotia
The government of Nova Scotia announced that the basic personal amount has been increased by $250 and the remaining tax credits have been increased approximately by 3%.
| Provincial Personal Tax Credit amounts | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $7,981 | $8,231 |
| Age amount | maximum of $3,897 | maximum of $4,019 |
| Pension income amount | maximum of $1,104 | maximum of $1,138 |
| Disability amount | maximum of $4,738 | maximum of $4,887 |
| Spouse or common-law partner amount |
maximum of $6,778 | maximum of $6,989 |
| Amount for an eligible dependant |
maximum of $6,778 | maximum of $6,989 |
| Caregiver amount | maximum of $4,610 | maximum of $4,753 |
| Amount for infirm dependants age 18 or older |
maximum of $2,633 | maximum of $2,716 |
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.
Prince Edward Island
There are no changes to the personal tax credit amounts for the province of Prince Edward Island.
New Brunswick
| Provincial Personal Tax Credit amounts (indexing factor is 2%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $8,605 | $8,777 |
| Age amount | maximum of $4,202 | maximum of $4,286 |
| Disability amount | maximum of $6,966 | maximum of $7,106 |
| Spouse or common-law partner amount |
maximum of $7,307 | maximum of $7,453 |
| Amount for an eligible dependant |
maximum of $7,307 | maximum of $7,453 |
| Caregiver amount | maximum of $4,064 | maximum of $4,145 |
| Amount for infirm dependants age 18 or older |
maximum of $4,064 | maximum of $4,146 |
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.
Ontario
| Provincial Personal Tax Credit amounts (indexing factor is 0.7%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $8,881 | $8,943 |
| Age amount | maximum of $4,336 | maximum of $4,336 |
| Pension income amount | $1,228 | $1,237 |
| Tuition and education amounts (full-time) | $478 | $481 |
| Tuition and education amounts (full-time) | $143 | $144 |
| Disability amount | maximum of $7,175 | maximum of $7,225 |
| Spouse or common-law partner amount |
maximum of $7,541 | maximum of $7,594 |
| Amount for an eligible dependant |
maximum of $7,541 | maximum of $7,594 |
| Caregiver amount | maximum of $4,186 | maximum of $4,216 |
| Amount for infirm dependants age 18 or older |
maximum of $4,186 | maximum of $4,215 |
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.
Manitoba
There are no changes to the personal tax credit amounts for the province of Manitoba.
Saskatchewan
| Provincial Personal Tax Credit amounts (indexing factor is 0.6%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $13,269 | $13,348 |
| Age amount | maximum of $4,340 | maximum of $4,366 |
| Senior supplementary amount | $1,146 | $1,153 |
| Disability amount | maximum of $8,395 | maximum of $8,445 |
| Spouse or common-law partner amount |
maximum of $13,269 | maximum of $13,348 |
| Amount for an eligible dependant |
maximum of $13,269 | maximum of $13,348 |
| Child amount | $4,915 | $4,944 |
| Caregiver amount | maximum of $8,395 | maximum of $8,445 |
| Amount for infirm dependants age 18 or older |
maximum of $8,395 | maximum of $8,445 |
Non-indexed tax credits are the total of lines 4, 5, 12 and 13 of the TD1SK form. Indexed tax credits are the total of lines 1, 2, 3, 6, 7, 8, 9, 10 and 11 of the TD1SK form.
Alberta
| Provincial Personal Tax Credit amounts (indexing factor is 0.3%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $16,775 | $16,825 |
| Age amount | maximum of $4,675 | maximum of $4,689 |
| Pension income amount | $1,292 | $1,296 |
| Tuition and education amounts (full-time) | $652 | $654 |
| Tuition and education amounts (full-time) | $196 | $196 |
| Disability amount | maximum of $12,940 | maximum of $12,979 |
| Spouse or common-law partner amount |
maximum of $16,775 | maximum of $16,825 |
| Amount for an eligible dependant |
maximum of $16,775 | maximum of $16,825 |
| Caregiver amount | maximum of $9,711 | maximum of $9,739 |
| Amount for infirm dependants age 18 or older |
maximum of $9,710 | maximum of $9,740 |
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.
British Columbia
In its Budget Update 2009, the government of British Columbia announced an increase to the basic personal amount ($11,000) and the spouse or common-law partner amount ($9,653) for 2010
| Provincial Personal Tax Credit amounts (indexing factor is 0.4%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $9,373 | $11,000 |
| Age amount | maximum of $4,203 | maximum of $4,220 |
| Disability amount | maximum of $7,030 | maximum of $7,058 |
| Spouse or common-law partner amount |
maximum of $8,026 | maximum of $9,653 |
| Amount for an eligible dependant |
maximum of $8,026 | maximum of $9,653 |
| Caregiver amount | maximum of $4,101 | maximum of $4,118 |
| Amount for infirm dependants age 18 or older |
maximum of $4,101 | maximum of $4,118 |
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
The Yukon tax credit amounts will be harmonized with all federal personal amounts. Therefore, the basic personal amount, the spouse or common-law partner amount and the amount for an eligible dependant will be set at $10,382.
| Territorial Personal Tax Credit amounts (indexing factor is 0.6%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $10,375 | $10,382 |
| Child amount | $2,089 | $2,101 |
| Age amount | maximum of $6,658 | maximum of $6,446 |
| Disability amount | maximum of $7,196 | maximum of $7,239 |
| Spouse or common-law partner amount |
maximum of $10,375 | maximum of $10,382 |
| Amount for an eligible dependant |
maximum of $10,375 | maximum of $10,382 |
| Caregiver amount | maximum of $4,198 | maximum of $4,223 |
| Amount for infirm dependants age 18 or older |
maximum of $4,198 | maximum of $4,223 |
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
| Territorial Personal Tax Credit amounts (indexing factor is 0.6%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $12,664 | $12,740 |
| Age amount | maximum of $6,195 | maximum of $6,232 |
| Disability amount | maximum of $10,270 | maximum of $10,332 |
| Spouse or common-law partner amount |
maximum of $12,664 | maximum of $12,740 |
| Amount for an eligible dependant |
maximum of $12,664 | maximum of $12,740 |
| Caregiver amount | maximum of $4,198 | maximum of $4,223 |
| Amount for infirm dependants age 18 or older |
maximum of $4,198 | maximum of $4,223 |
Non-indexed tax credits are the total of lines 3, 4, 10 and 11 of the TD1NT form. Indexed tax credits are the total of lines 1, 2, 5, 6, 7, 8 and 9 of the TD1NT form.
Nunavut
| Territorial Personal Tax Credit amounts (indexing factor is 0.6%) | ||
|---|---|---|
| Amount effective in 2009 | Amount Effective January 1, 2010 | |
| Basic personal amount | $11,644 | $11,714 |
| Age amount | maximum of $8,733 | maximum of $8,786 |
| Disability amount | maximum of $11,644 | maximum of $11,714 |
| Spouse or common-law partner amount |
maximum of $11,644 | maximum of $11,714 |
| Amount for an eligible dependant |
maximum of $11,644 | maximum of $11,714 |
| Caregiver amount | maximum of $4,198 | maximum of $4,223 |
| Amount for infirm dependants age 18 or older |
maximum of $4,198 | maximum of $4,223 |
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
- Date modified: