1ST CHOICE Income Tax Service

For information on a variety of tax news, tips and budget information, follow the links below or visit one of these helpful sites:

CANADA REVENUE AGENCY         or      TAXTIPS.CA

The following are proposed measures announced in the 2009 budget on January 27, 2009, but that have not yet been enacted by Parliament.

The CRA will continue to communicate tax changes through its Web site, its forms and publications, its phone enquiries services and other communication channels, as the information becomes available.

In the meantime, consult the Web site of the Department of Finance Canada to find out more or click the links below to visit CRA's site.

• AGE AMOUNT- The budget proposes to increase the maimum age amount by $1,000 to $6,408 (indexed after 2009)
• FIRST-TIME HOME BUYERS' TAX CREDIT (HBTC) - The budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009.
• HOME BUYERS' PLAN - The budget proposes to increase the maximum withdrawal amount to $25,000 from $20,000 for withdrawals made after January 27, 2009.
• HOME RENOVATION TAX CREDIT - This proposed tax credit has everyone asking about it!! Visit the CRA information page.

• REGISTERED EDUCATION SAVINGS PLANS (RESP's) - More flexibility in RESP's include:The time an RESP remains open has increased to 35 years from 25 years, and the contribution period will be increased by 10 years. There is no annual contribution limit for 2007 and subsequent years and the lifetime contribution limit isincreased to $50,000.
• NORTHERN RESIDENTS DEDUCTION - The residency component of the Northern Resident's Deduction will be increased by 10%.
• TAX BACK GUARANTEE - $2 BILLION in annual interest savings by 2009/10 will be dedicated to ongoing personal income tax reductions!
• AUTOMOBILE EXPENSES - Simplifying the record keeping for the Automobile Expenses Deduction will allow self-employed and those claiming auto expenses more time to focus on their business!
• THE GUARANTEED INCOME SUPPLEMENT for  will see the exemption for employment earnings rise from $500 to $3500.

• TAX FREE SAVINGS ACCOUNT (TFSA): The TFSA is now available. Learn about contribution limits, withdrawals, taxes payable, etc.
• REGISTERED DISABILITY SAVINGS PLANS: RDSP's were introduced in the 2007 Budget and are now available.
• LIFE INCOME FUNDS: The Life Income Fund (LIF) permits retirees to transfer a lock-in Registered Pension Plan to a pension plan that offers more flexibility in retirement and tax planning.
• WORKING INCOME TAX BENEFIT: Learn more about this refundable credit or download the form RC201 to apply for advance payments.
• PENSION INCOME SPLITTING: Pensioners and their spouses may benefit from this election introduced in 2007. Download form T1032 from this link
• HEALTH & MEDICAL RELATED ISSUES
• TAX RATES FOR 2008