Tax brackets, figures and details for your practice (the 2009 edition)

It’s that time of year again — step right up and get your downloadable tax bracket, personal amount and federal tax credit information here. Personal income tax amounts are indexed to inflation, using Consumer Price Index data reported by Statistics Canada. This year, changes reflect index increases of 2.5% for 2009.

[Click here to download this 2008-2009 fact sheet]

Tax planning is a perennial issue and topic of coverage here. Each year in November we kick off the season with an annual package that includes new updates to know about, document checklists, case studies, client template letters you can download and customize and more.

Skip to related tax planning articles from Advisor.ca:

Documentation checklist Up to speed: An overview of tax changes in 2008 Ahead of the pack: Tax tips for 2008 Back-filing and tips for past tax years

	2009 ($)	2008 ($)
Tax bracket thresholds
Taxable income above which the 22% bracket begins	38,832	37,885
Taxable income above which the 26% bracket begins	77,664	75,769
Taxable income above which the 29% bracket begins	126,264	123,184
Amounts relating to non refundable tax credits
Basic personal amount (See note 1.)	10,100	9,600
Age amount	5,408	5,276
Net income threshold	32,312	31,524
Spouse or common-law partner amount (maximum) (See note 1.)	10,100	9,600
Amount for an eligible dependant (maximum) (See note 1.)	10,100	9,600
Amount for children under age 18 (maximum per child)	2,089	2,038
Canada employment amount (maximum)	1,044	1,019
Infirm dependant amount (maximum per dependant)	4,198	4,095
Net income threshold	5,956	5,811
Caregiver amount (maximum per dependant)	4,198	4,095
Net income threshold	14,336	13,986
Disability amount	7,196	7,021
Supplement for children with disabilities (maximum)	4,198	4,095
Threshold relating to allowable child care and attendant care expenses	2,459	2,399
Adoption expenses (maximum per adoption)	10,909	10,643
Medical expense tax credit-3% of net income ceiling	2,011	1,962
Refundable medical expense supplement
Maximum supplement	1,067	1,041
Minimum earnings threshold	3,116	3,040
Family net income threshold	23,633	23,057
Old Age Security repayment threshold	66,335	64,718

Old Age Security Benefit Payment Rates January-March 2009 (See note 2.)
Type of benefit	Recipient	Average monthly benefit (October 2008)	Maximum monthly benefit	Maximum annual income
Old Age Security pension	All recipients	$489.83	$516.96	See note 3.
Guaranteed Income Supplement	Single person	$452.04	$652.51	$15,672
	Spouse of pensioner	$284.18	$430.90	$20,688
	Spouse of non-pensioner	$445.44	$652.51	$37,584
	Spouse of allowance recipient	$372.18	$430.90	$37,584
Allowance	All recipients	$391.54	$947.86	$28,992
Allowance for the survivor	All recipients	$587.79	$1,050.68	$21,120

Canada Pension Plan (CPP) Payment Rates
Type of benefit	Average monthly benefit (October 2008)	Maximum monthly benefit (2009)
Disability benefit	$798.02	$1,105.99
Retirement pension (at age 65)	$489.72	$908.75
Survivors benefit (under age 65)	$358.62	$506.38
Survivors benefit (age 65 and over)	$292.25	$545.25
Children of disabled contributors benefit	$208.77	$213.99
Children of deceased contributors benefit	$208.77	$213.99
Combined survivors & retirement benefit (pension at age 65)	$696.63	$908.75
Combined survivors & disability benefit	$937.30	$1,105.99
Death benefit (max lump sum)	$2,243.44	$2,500.00

Notes 1. Changes announced in the 2007 Economic Statement increase the basic personal amount, the maximum spouse or common-law partner amount and the maximum amount for an eligible dependant to $9,600 for the 2007 and 2008 tax years, and to $10,100 for 2009.

The net income threshold has also been eliminated for 2007 and subsequent tax years. Spouse or common-law partner amounts and the amount for an eligible dependant are calculated by subtracting the net income of the spouse or common-law partner or the dependant, as applicable, from the maximum amount ($10,100 for 2009, $9,600 for 2007 and 2008).

2. Where CPP and tax brackets are adjusted annually, OAS numbers are adjusted quarterly in response to inflation numbers.

3. Pensioners with an individual net income above $66,335 must repay part or all of the maximum Old Age Security pension amount. The repayment amounts are normally deducted from their monthly payments before they are issued. The full OAS pension is eliminated when a pensioner’s net income is $107,692 or above.

Documentation checklist Do you have the right documents ready? Use this handy checklist to make sure you have everything covered. Read more.

Up to speed: An overview of tax changes in 2008 Need a little tax tutorial before plunging into another RRSP season? Bring yourself up to speed with our overview of this year’s tax changes. Read more.

Ahead of the pack: Tax tips for 2008 The focus for investors this time of the year should be on tax — realizing capital gains, filing tax returns, donating to charity — but the volatile markets have probably forced your clients to worry about their stocks. Your clients might be wondering whether to buy or sell, but it’s important to remind them that tax season is coming regardless of how the country’s economy is faring. With that in mind, Advisor.ca has compiled its annual Ahead of the Pack tax package, in which we outline everything you need to know about the 2008 tax year. Read more.

Tax tips for past years:

Tax brackets, figures and details for your practice (2007-08)

Talking to clients: Tax changes for 2007

(01/07/09)