January 27th the Federal Government unveiled the 2009 budget. Regardless of your political affiliation, you undoubtedly watched with interest to see how the Harper government would attempt to support the Canadian economy in a time of great uncertainty.
Canada's Economic Action Plan, designed to "protect Canadians during the global recession, to create new, good jobs for the future, and to equip our country for success in the years ahead."
One of the strategies - $20 billion in tax relief:
- Basic personal amount will increase in 2009 to $10,320 from $9,600 in 2008 (worth about $66 for a person with an income of $30,000 to $150,000).
- The upper limit for the first income-tax bracket (15%) will increase to $40,726 from $37,885, allowing more income to be taxed at 15%; the upper limit for the second tax bracket (22%) will increase to $81,452 from $75,769 (total savings of $133 for a two-income family earning $80,000 with two children).
- Up to $150 in annual tax savings for seniors through a $1,000 increase -— to $6,408 -— in the age credit amount.
- Low-income families can earn an extra $1,894 and still receive the maximum National Child Benefit supplement, providing additional benefits of up to $436 annually.
For more information on how the new budget will effect your tax situation, or to begin planning to take advantage of these changes, contact us to arrange a meeting.