The Citizen, 1999-01-13, Page 7THE CITIZEN, WEDNESDAY, JANUARY 13,1999. PAGE 7.
Tips help jump start income tax filing
(NC)—Effective July 1, 1998,
single taxpayers with annual
income under $20,000 may qualify
for a supplementary personal credit
of up to $500 a year - those
supporting a family with less than
$40,000 in total income may
qualify for up to $1,000. The
maximum credit is restricted in
1998 to $250 for a single taxpayer,
and $500 for a family.
In 1999 the maximum $500 and
$1,000 gross amounts translate into
federal tax credits of $85 and $170,
respectively, for single and family
taxpayers, designed to supplement
the existing basic personal, spousal
and equivalent-to-spouse credits.
The potential $500 maximum
credit for single taxpayers is
reduced by four per cent of net
income exceeding $6,956. Married
taxpayers have the $1,000 credit
further reduced by the lesser of $85
or 17 per cent of their spouses’ net
income exceeding $6,956.
This supplemental credit
increases to $6,956 (from $6,456)
the amount of income that an
individual must eliminate in excess
tax liability before being eligible to
transfer any unused non-refundable
credits to a spouse.
Canada child tax benefit
Effective July 1998, a new, non-
taxable Canada Child Tax Benefit
(CCTB) and CCTB National Child
Benefit Supplement replaces the
Child Tax Benefit (CTB) and
Working Income Supplement
(WIS). This package provides
families earning up to $20,921 per
year benefits of $1,625 for their
first child and $1,425 for each
additional child. The CCTB
National Child Benefit
Plastic needs vacation
(NC)—If the bliss of a family
vacation is typically followed by
the sorrow of unmanageable credit
card statements upon your return,
there may be a better way to
finance your next holiday.
To pay for your next trip to
Disney or Bora Bora, consider
applying for a line of credit from
your bank or financial institution.
A personal line of credit typically
offers more flexible repayment
options than credit cards — you
can even choose to pay interest-
only each month. And, since
interest rates are typically much
lower, you can save money by
paying off credit card balances with
financing from the credit line.
While you have instant access to
funds up to a pre-set limit, you only
pay interest on credit you’ve used
at any given time so there’s no cost
until you use it. Funds are available
any time — for any purpose —
without having to re-apply for a
loan.
Your credit limit will depend on
your personal financial situation,
individual needs, and whether or
not you want to use personal assets
such as a home as security for your
credit line.
Ask for details about Royal
Credit Line at your Royal Bank
branch, call 1-800 ROYAL™ 9-9
(1 800 769-2599) or check out the
Royal Bank web site at
www.royalbank.com/personalloans
/rcl.html.
- News Canada
Supplement, which provides $605
for the first child, $405 for the
second child and $330 for each
additional child, replaces the WIS
and will be reduced as net family
income rises above $20,921.
Education tax credit enhanced
In 1998, full-time students at a
designated post-secondary
educational institution are eligible
to claim credits of $200 per month,
increasing from $150 a month in
1997.
Commencing in 1998, students
undertaking in part-time studies—a
minimum of 12 hours of course
work per month in a program
lasting at least three consecutive
weeks at a designated educational
institution in Canada—are able to
claim an education credit of $60 a
month. This credit features the
same transfer and carry forward
provisions applicable to full-time
students.
Child care expense deduction
increased
Effective 1998, the maximum
child care expense deduction
increases from $5,000 to $7,000 for
children under seven, and from
$3,000 to $4,000 for children
between seven and 16.
The 1998 budget proposes that
child care provisions be extended
allowing single parents to claim a
deduction for child care expenses
during months spent pursuing part-
time education at a designated
institution. In two-parent families
(where one spouse is working
while the other is studying part-
time) the working spouse is eligible
to claim a deduction equal to the
lesser of: the actual amount paid;
two-thirds of their earned income;
or $175 per child under the age of
seven, plus $100 per child between
the ages of seven and 16, for each
month a part-time education credit
is claimed.
Seniors benefit scrapped
Plans for a proposed Seniors
Benefit (1996 federal budget) to
replace the Old Age Security and
Guaranteed Income Supplement
(effective 2001) were scrapped.
The preceding 1998 changes
affecting individuals are from CGA
Ontario’s 1998/99 Personal Tax
Planning booklet. Copies are now
available at participating public
libraries and Business Depot stores
throughout Ontario.
- News Canada
RRSP's$$
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357-4378 335-3979
e-mail: ak1ins@wcl.on.ca
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