Major changes for the 2006 tax year

Universal Child Care Benefit (line 117) - Since July 2006, if you are an eligible individual responsible for the care of a child under 6 years of age, you are eligible to receive $100 per month for each qualified dependant. See Universal Child Care Benefit and line 117 for details.

Provincial parental insurance plan (lines 119, 223, 375, 376, 378, and 450) - This is a new income replacement plan for residents of Quebec. See your guide from Revenu Québec for details.

Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations (line 120) - There are now two types of dividends. See line 120 for details.

Taxable capital gains (line 127) - After May 1, 2006, the capital gains inclusion rate for donations of publicly-listed securities and ecologically-sensitive land to qualified donees is zero. See Pamphlet P113, Gifts and Income Tax, for details.

Other income (line 130) - Certain scholarships, fellowships, and bursaries are excluded from income if you are entitled to claim the education amount. See line 130 for details.

Tradesperson's tools expenses (line 229) - A portion of the cost of eligible tools acquired by you as an employed tradesperson after May 1, 2006, is deductible. See Guide T4044, Employment Expenses, for details.

Non-capital losses of other years (line 252) - For non-capital losses incurred in tax years after December 31, 2005, the loss carry forward period has been extended to 20 years.

Capital gains deduction (line 254) - After May 1, 2006, a capital gain resulting from the disposition of qualified fishing property is eligible for this deduction. See Guide T4037, Capital Gains, for details.

Age Amount (line 301) - The maximum amount is increased to $5,066.

Canada employment amount (line 363) - All employees are eligible to claim this credit. See line 363 for details.

Public transit passes amount (line 364) - You can claim the cost of public transit passes after June 30, 2006. See line 364 for details.

Pension income amount (line 314) - The maximum amount of eligible pension income that can be used to calculate the credit is increased to $2,000.

Textbook amount (line 323) - You can now claim an amount for textbooks if you are entitled to claim the education amount. See Textbook amount for details.

Investment tax credit (line 412) - The deadline to claim a tax credit for renounced Canadian exploration expenses has been extended. See line 412 for details.

For investment tax credits earned in a year that ends after 2005, the carry forward period has been extended to 20 years.

An apprentice job creation tax credit is available if you are a self-employed individual who employs an eligible apprentice in your business. See Form T2038(IND), Investment Tax Credit (Individuals) for details.

Federal dividend tax credit (line 425) - There are new calculations for this credit. See line 425 for details.

Refundable medical expense supplement (line 452) - The maximum amount is increased to $1000. See line 452 for details.

Date modified:

2009-02-24