General Filing Numbers
The current family loan rate is 1%.
Medical Expenses Threshold
For the 2020 tax year, the maximum is 3% of net income or $2,397, whichever is less. For 2021, the max is 3% or $2,421, whichever is less.
Basic Personal Amount
2020 - ranges between $12,298 - $13,229
2021 - $13,808 for taxpayers with net income of $151,978 or less. At income levels above $151,978, the basic personal amount is gradually clawed back until it reaches $216,511.
(line 300 on your tax return)
Working Tax Filers
Maximum RRSP Contribution Room
18% of your previous year’s earned income to a maximum of:
2020 - $27,230 *Reminder: contributions to be applied to your 2020 tax return must be made by March 1, 2021.
2021 - $27,830
TFSA Contribution Limit
The annual limit for 2021 remains $6,000. The total room available for someone who has never contributed before and has been eligible since TFSA’s were introduced in 2009 is $75,500.
Maximum Pensionable Earnings
2020 - $58,700
2021 - $61,600
*The basic exemption amount remains $3,500
Maximum EI Insurable Earnings
2020 - $54,200
2021 - $56,300
Lifetime Capital Gains Exemption
2020 - $883,384
2021 - $892,218
Home Buyers' Amount
If you purchased a home last year, you may be eligible to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750. The Home Buyer's Plan withdrawal limit is $35,000.
This can be claimed if you were 65 years of age or older on December 31st of the taxation year. The maximum amount that can be claimed for 2020 is $7,637 and for 2021, $7,713.
Pension Income Amount
If you reported eligible pension, superannuation or annuity income you may be entitled to claim up to $2,000.
OAS Recovery Threshold - "Clawback"
If your net world income exceeded $79,054 for 2020 ($79,845 for 2021), you may have to repay part of, or the entire amount of OAS pension collected. This is commonly referred to as the OAS “clawback”.
Filers with Dependents
Canada Caregiver Amount
If you have a dependent under the age of 18 who is physically or mentally impaired, you may be able to claim up to an additional $2,273 for 2020 ($2,295 for 2021) in calculating certain non-refundable tax credits.
For infirm dependents 18 or older, the amount for 2020 is $7,276 and $7,348 for 2021.
2020 - $8,576 (non-refundable credit), with a supplement up to $5,003 for those under 18 (the amount is reduced if child care expenses are claimed).
2021 - $8,662 (non-refundable credit), with a supplement up to $5,053 for those under 18 (the amount is reduced if child care expenses are claimed).
Child Disability Benefit
2020 – up to $2,886 (tax-free benefit) for families who care for a child under age 18 with a severe and prolonged impairment in physical or mental functions.
2021 – up to $2,915.
Canada Child Benefit (CCB)
The maximum CCB benefit for 2020 (non-taxable) is $6,765 per child under age 6 and up to $5,708 per child aged 6 through 17.
For 2021 the amounts are $6,883 per child under age 6 and up to $5,765 per child aged 6 through 17.
The benefit is based on your family net income.
As always, it is recommended that you consult with a professional to ensure your taxes are filed accurately to maximize the credits and strategies available to you. The team at Zebroski and Associates completes annual tax returns for many of our clients, a service which is conveniently facilitated through our office. If you would like more information, please do not hesitate to contact us.
Zebroski and Associates is an independent company. Industrial Alliance have no liability for activities outside of HollisWealth.
Source: Staff. "Essential Tax Numbers." Advisor.ca . N.p., 02 Dec. 2020. Web. 08 Dec. 2020.
Posted In: Taxes