Tax Credit for Transit Passes
You can claim a new non-refundable tax credit for the cost of public transit passes purchased in respect of transit on or after July 1, 2006. Transit will include transit by local bus, streetcar, subway, commuter train, commuter bus and local ferry. The pass must be valid for a period of at least one month. The credit may be claimed by either the taxpayer or the taxpayer's spouse or common-law partner for transit costs incurred by themselves and their dependent children under the age of 19.Make sure you keep your passes or receipts so that you can substantiate the amount you spent.

Universal Child Care Benefit
Effective July, 2006, a new Universal Child Care Benefit was provided to eligible families; a monthly payment of $100 per month for each child under the age of six. These payments will be taxable in the hands of the lower-income spouse or common-law partner. However, they will not be taken into account in determining eligibility for income-dependent programs delivered through the tax system and will not be included in the net income threshold for clawing back Old Age Security or EI benefits.

Children's Fitness Tax Credit
Effective 2007 taxation year, a new non-refundable tax credit will be introduced for fees incurred in enrolling children under the age of 16 in an eligible program of physical activity. There will be a maximum amount of $500 that may be claimed.

Textbook Tax Credit
Post-secondary students are eligible for a new non-refundable tax credit for textbooks for the 2006 taxation year. The amount on which the credit is based will be calculated as: $65 for each month the student qualifies for the full-time education amount; and $20 for each month the student qualifies for the part-time education amount. Proof of textbooks purchased is not required. Unused amounts may be transferred or carried forward in the same way as unused tuition and education amounts.

Scholarship, Fellowship and Bursary Income
Effective for 2006 and subsequent years, income from scholarships, fellowships and bursaries will be completely exempt from income tax if they are received in respect of a program that entitles the student to the education amount.

Pension Income Amount and Age amount
Pension income amount has been increased from $1,000 to $2,000. The age amount will increase to $5,066 from $3,979.

Adoption Expenses
A non-refundable tax credit for adoption expenses can be claimed by the adopting parents.

Medical Expenses Supplement
The base amount of the refundable medical expense supplement has been increased to $1,000 for the 2006.

Trades people’s Tool Deduction
Trades persons can claim a deduction for the cost of eligible tools acquired by an employed tradesperson in excess of $1,000. Maximum claim amount is $500. The deduction will apply to eligible tools acquired after May 1, 2006. The employee will also be able to claim the GST/HST rebate on the deductible portion of the tools' cost. The employer must certify that the tools are required for use in the employment.

Donations of Publicly Traded Securities & Ecologically Sensitive Land
The capital gain on resulting from donating publicly listed securities and ecological sensitive land will not be taxable effective 2006.

Enhanced Dividend Tax Credit for Dividends from Large Corporations
The government will proceed with measures announced by the previous government on November 23, 2005 to provide an enhanced dividend tax credit for dividends received from large corporations. These dividends from large corporation will be grossed up by 45% (eg. $100 will be reported as $145 for calculation of income) but you will receive a credit of 11/18 of the grossed up amount to be applied against federal tax payable.

Non-Capital Losses
Non-capital losses incurred after 2005 can now be carried forward up to 20 years. The carry back period remains the same 3 years as before.

Note: The above changes are for your information only. Please consult with us prior to implementing any of these changes.

Your Personal Tax Checklist Print YOU NEED YOUR PREVIOUS YEAR'S NOTICE OF ASSESSMENT FROM REVENUE CANADA & THE FOLLOWING SLIPS/RECEIPTS
INCOME T4 Employment Income T4A Other Income TT4AP Canada Pension T4AOAS Old Age Security T4RSP- RRSP Withdrawls Other T-Slips - T3, T5, T600, T4E T5007 Social Assistance or WSIB Income Rental Income Professional/ Business/ Commission Income Alimony/Child Support Received Sale of Shares, Real Estate, Stocks Other Income Slips	DEDUCTIONS RECEIPTS RRSP Contribution Union & Prof. Dues Child Care/Camp Fees Moving Expenses Public transit passes from July 1/06 Alimony Paid Investment Loans Interest Employment Expenses Form T2200 Disability Certificate T2201 Tuition Receipt T2202 Safety Deposit Box Charitable Donations Political Contributions Medical Expenses Property Taxes/ Rent Employment Expenses
OTHER RRSP Home Buyers Loan Repayment Student loan interest paid RRSP - Home Buyers Plan Required Repayment Life Long Learning Plan Required Repayment Personal Tax Installments Paid A Void Cheque For Direct Deposit Of Refund,      GST & Child Tax Benefit	ANY OTHER MATTERS _____________________________ _____________________________ _____________________________

Employment Expenses Checklist Print