Income Tax - What's new for 2012?

Article written by Jennifer Black and Dedicated Financial Solutions.

Income Tax – What’s new for 2012?

What’s new for 2012. We list the major changes below, including income tax changes that have been announced but were not law at the time of printing. If they become law as proposed, they will be effective for 2012 or as of the dates given. For more information about these and other changes, follow the links below to the CRA website.

Employees profit sharing plan (EPSP) (lines 229 and 418) – You may have to pay a new tax if you are a specified employee and contributions your employer made to an EPSP and allocated to you for the year exceed a threshold. If you are subject to this new tax, you may be eligible for a deduction on line 229. For more information, see Employees profit-sharing plan (EPSP) and Tax on excess employees profit sharing plan (EPSP) amounts.

Canada Pension Plan (CPP) working beneficiaries contributions – (line 308) – As of January 1, 2012, the rules for contributing to the CPP changed. The changes apply to you if you are an employee or self-employed, you are 60 to 70 years of age, and you are receiving a CPP or Quebec Pension Plan retirement pension. For more information, go to Changes to the Canada Pension Plan (CPP). To find out how the changes may affect your CPP benefits, go to Service Canada, Changes to the Canada Pension Plan (CPP).

Medical expenses (lines 330 and 331) – Prescribed blood coagulation monitors for individuals who require anti-coagulation therapy are now eligible as medical expenses. For more information, see Guide RC4064, Medical and Disability Related Information.

Investment tax credit (line 412) – Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2013. For more information, see Investment tax credit.

Family caregiver amount – If you have a dependent with an impairment in physical or mental functions, you could be eligible for an additional amount of $2,000 in the calculation of certain non-refundable tax credits. For more information, see Family caregiver amount (FCA).

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