Do not Compromise with cost and do not take a chance.

Are you preparing your Tax Return Yourself? Make sure you are doing it right.

2009 Budget highlights and its impact on you!

First Time Home Buyer's Tax Credit

A new non-refundable tax credit of $5,000 is introduced for the purchase of qualified homes that close after January 27, 2009. This is claimable for the taxation year in which the home is acquired.

Taxpayers qualify as first time home buyers if neither the individual nor his/her spouse or common-law spouse owned and lived in another home in the calendar year of the purchase or any of the four preceding years, which are the same rules as for the Home Buyer's Plan. The home must be occupied no later than one year after acquisition.

The unused portion of the credit can be transferred to a spouse. In the case of joint buyers of the home, the credits claimable by those individuals must not exceed the maximum amount of the credit claimable by any one individual.

Taxpayer who is eligible for the Disability Tax Credit (DTC) may also claim the credit if that home is being acquired for the disabled person to live in a more accessible dwelling.

Increase in basic personal amount can reduce your Tax!

Find out how the Federal Budget could impact your tax return.

Budget 2009: Personal Tax Cuts and Credits for Canadian Taxpayers

The recent Federal Budget introduced a number of tax credits and cuts for just about every Canadian taxpayer. Though the credits will take effect on your 2009 tax return, the tax cuts will mean most Canadians will see a little more on every pay cheque in the spring.

All Canadians will benefit from the increase to the basic personal amount from $9,600 to $10,320 in 2009. The basic personal amount is the income you can earn before paying taxes.

The income threshold on the first tax bracket will increase to $40,726 from $37,885. This means you can earn up to $40,726 and pay 15 per cent tax on this income.

The second tax bracket was also increased from $75,769 to $81,452. So if you earn $81,452, you will be taxed for the first $40,726 at 15 per cent and the rest of your income at 22 per cent.

These tax savings will be handled through payroll deductions through employers. The income thresholds should be updated by Spring 2009. The budget also had some specific tax credits for different groups of Canadian taxpayers:

Starting July 2009, low-income families with two children will see and an increase to the National Child Benefit of up to $436.

Seniors will see an increase to the age amount of $1,000, providing a tax savings of $150.

Homes and home ownership also a prominent role with the following changes:

The existing Home Buyer’s Plan (HBP) has been enhanced to allow a non-taxable withdrawal of $25,000 towards the purchase of a home – up from $20,000. First time home buyers can also claim a new tax credit of up to $5,000 for closing costs.

Home renovation tax credit HRTC? Reduce your tax by $1350!

This is a family based credit. A family is generally considered to include you and your spouse or common-law partner, and your or your spouse's or common-law partner's children who are under 18 years of age at the end of 2009.

The claim can be split among family members but the total amount claimed cannot exceed the maximum allowable.

For existing homeowners, the Home Renovation Tax Credit will provide a 15 per cent tax credit on eligible home renovations in excess of $1,000 and up to $10,000.

This temporary Home Renovation Tax Credit (HRTC) will apply only to the 2009 tax year.

How much credit you can claim?

 A new non-refundable tax credit worth a maximum of $1350 (calculated as 15% on home renovation projects between $1,000 and $10,000) will be available for work performed or goods acquired after Budget Day and before Feb. 1, 2010 to personal residences ordinarily inhabited by the individual, spouse or common-law partners and their minor children.

The credit will apply to expenses in the period January 28, 2009 and before February 1, 2010 (If agreements for work were entered into before January 27, the expenditure will not qualify).

Eligible expenses will include renovations that are of an enduring nature and integral to the eligible building, including labor and professional services, building materials, fixtures, equipment rentals and permits.

Not eligible are purchase of tools, routine repairs, appliances, audio-visual electronics, furniture or drapes.

Unused portions of the credit can be transferred between spouses. Families who share ownership of a dwelling can each claim their own credit, but each family's credit will be determined by their respective expenses over $1,000 but not more than $10,000.

 Business Tax Provisions

Most important amongst the changes is the increase to the annual amount of active business income eligible for the reduced corporate tax rate the small business limit. It has been increased as of January 1, 2009 to $500,000 from its current level of $400,000.

Changes have also been announced to enhance Investment Tax Credits, continue on with accelerated capital cost allowance rates and most notably allow for the 100% write off of computers and software after January 27, 2009 and before February 2011. The latter provisions will not be subject to the half-year rules.

 Seniors Age credit is increased up to $6408.

 An individual who is 65 years of age or older may qualify for the Age Amount.  For 2009, the budget proposes to increase the maximum age from $5,408 to $6,408 (indexed after 2009).

Tax for seniors may be reduced by more than $1200.

The revised amount will be incorporated into your 2009 personal income tax return and may be claimed when you file this return. For 2009, the Age Amount will not be reduced if your income is less than  $32,312 this amount changed?

In case of tax payers entitled to the increased age amount have their income tax with holdings reduced directly from their pension may arrange for a reduction in tax with holdings by filing a revised TD1 form with the payer of the pension.

We can help!

Need your Tax Refund right now?

WE CAN HELP!