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COMPENSATION DIRECTIVE: 2004-025
Information Notice to Employees
December 17, 2004
| SUBJECT: |
Federal, Provincial and Territorial Personal Tax Credits (excluding Quebec) -- Effective January 1, 2005 |
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1 |
PURPOSE |
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1.1 |
The purpose of this directive is to provide information concerning changes to the federal, provincial and territorial personal tax credits (excluding Quebec) for the 2005 taxation year. |
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1.2 |
In this text, use of the masculine is generic and applies to both men and women. |
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1.3 |
A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Who are you? - Public Service Employee" page of the Compensation Sector Web site.
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2 |
BACKGROUND |
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2.1 |
Many of the personal tax credit amounts on the federal, provincial and territorial "Personal Tax Credits Return" (TD1) forms have been indexed for 2005. Indexing means that certain personal tax credit amounts will increase based on changes to the Consumer Price Index (CPI). For example, the federal indexing factor for 2005 is 1.7%. To calculate the indexed federal personal tax credit amounts for 2005, the appropriate personal tax credit amounts will be multiplied by 1.017.
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3 |
POLICY |
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Effective January 1, 2005, the following non-refundable personal tax credit amounts can be claimed by employees based on their province of employment. |
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3.1 |
FEDERAL PERSONAL TAX CREDITS |
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The Canada Revenue Agency (CRA) has announced that the following personal tax credit amounts have been indexed by 1.7% for the 2005 taxation year. The 2005 TD1 form has been revised to include these changes to the personal tax credit amounts. This form will be available at district taxation offices and at the CRA Web site at:
http://www.ccra-adrc.gc.ca/menu/AFAF_T_TD-e.html#ti |
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| Federal Personal
Tax Credit Amounts (indexing factor 1.7% ) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$8,012 |
$8,148 |
| Age amount |
maximum of $3,912 |
maximum of $3,979 |
| Disability amount |
$6,486 |
$6,596 |
| Spouse or common-law partner amount |
maximum of $6,803 |
maximum of $6,919 |
| Amount for an eligible dependant |
maximum of $6,803 |
maximum of $6,919 |
| Caregiver amount |
maximum of $3,784 |
maximum of $3,848 |
| Amount for infirm dependants age 18 or older |
maximum of $3,784 |
maximum of $3,848 |
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The amount of the non-indexed tax credits to be input into the Regional Pay System (RPS) in Element 80 (Federal Tax Credit Non Indexed Amount) is the total of lines 3, 4, 10 and 11 of the TD1 form. The amount of the indexed tax credits to be input into the RPS in Element 81 (Federal Tax Credit Indexed Amount) is the total of lines 1, 2, 5, 6, 7, 8, and 9 of the TD1 form. |
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3.2 |
PROVINCIAL AND TERRITORIAL PERSONAL TAX CREDITS |
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Some personal tax credit amounts have been indexed for the 2005 taxation year. Each provincial and territorial TD1 form has been revised to include these changes to the personal tax credit amounts. These forms will be available at district taxation offices and at the CRA Web site at:
http://www.ccra-adrc.gc.ca/menu/AFAF_T_TD-e.html#ti |
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There are no changes to the personal tax credit amounts for the provinces of Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Manitoba.
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New Brunswick |
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New Brunswick has announced that the following personal tax credits will be indexed by 1.7% for 2005. |
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| Provincial Personal
Tax Credit Amounts (indexing factor 1.7%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$7,756 |
$7,888 |
| Age amount |
$3,787 |
Maximum of $3,851 |
| Disability amount |
$6,279 |
$6,386 |
| Spouse or common-law partner amount |
$6,586 |
Maximum of $6,698 |
| Amount for an eligible dependant |
$6,586 |
Maximum of $6,698 |
| Caregiver amount |
$3,663 |
Maximum of $3,725 |
| Amount for infirm dependants age 18 or older |
$3,663 |
Maximum of $3,726 |
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Alberta |
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Alberta has announced that the following personal tax credits will be indexed by 1.3% for 2005. |
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| Provincial Personal
Tax Credit Amounts (indexing factor 1.3%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$14,337 |
$14,523 |
| Age amount |
maximum of $4,022 |
Maximum of $4,074 |
| Pension income amount |
$1,111 |
$1,126 |
| Tuition and education amounts (full-time) |
$445 |
$450 |
| Tuition and education amounts (part-time) |
$133 |
$135 |
| Disability amount |
$6,668 |
$6,755 |
| Spouse or common-law partner amount |
maximum of $14,337 |
Maximum of $14,523 |
| Amount for an eligible dependant |
maximum of $14,337 |
Maximum of $14,523 |
| Caregiver amount |
maximum of $3,890 |
Maximum of $3,940 |
| Amount for infirm dependants age 18 or older |
maximum of $3,890 |
Maximum of $3,940 |
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The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 of the TD1AB form.
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Ontario |
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Ontario has announced that the following personal tax credits will be indexed by 1.9% for 2005. |
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| Provincial Personal
Tax Credit Amounts (indexing factor 1.9%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$8,044 |
$8,196 |
| Age amount |
maximum of $3,928 |
Maximum of $4,002 |
| Pension income amount |
$1,112 |
$1,133 |
| Tuition and education amounts (full-time) |
$433 |
$441 |
| Tuition and education amounts (part-time) |
$130 |
$132 |
| Disability amount |
$6,499 |
$6,622 |
| Spouse or common-law partner amount |
maximum of $6,830 |
Maximum of $6,960 |
| Amount for an eligible dependant |
maximum of $6,830 |
Maximum of $6,960 |
| Caregiver amount |
maximum of $3,791 |
Maximum of $3,863 |
| Amount for infirm dependants age 18 or older |
maximum of $3,791 |
Maximum of $3,863 |
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The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 of the TD1ON form.
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Saskatchewan |
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Saskatchewan has announced that the following personal tax credits will be indexed by 1.7% for 2005. |
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| Provincial Personal
Tax Credit Amounts (indexing factor 1.7%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$8,264 |
$8,404 |
| Age amount |
maximum of $3,912 |
Maximum of $3,979 |
| Senior supplementary amount |
$1,033 |
$1,051 |
| Disability amount |
$6,486 |
$6,596 |
| Spouse or common-law partner amount |
maximum of $8,264 |
Maximum of $8,404 |
| Amount for an eligible dependant |
maximum of $8,264 |
Maximum of $8,404 |
| Child amount |
$2,583 |
$2,626 |
| Caregiver amount |
maximum of $3,784 |
Maximum of $3,848 |
| Amount for infirm dependants age 18 or older |
maximum of $3,784 |
Maximum of $3,848 |
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The amount of the non-indexed tax credits to be input into the RPS in Element 86 (Provincial Tax Credits Non Indexed Amount) is the total of lines 3 and 4 of the TD1SK form. The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2a, 2b, 5, 6, 7, 8, 9, 10, 11a and 11b of the TD1SK form.
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British Columbia |
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British Columbia has announced that the following personal tax credits will be indexed by 1.8% for 2005. |
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| Provincial Personal
Tax Credit Amounts (indexing factor 1.8%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$8,523 |
$8,676 |
| Age amount |
maximum of $3,822 |
Maximum of $3,891 |
| Disability amount |
$6,392 |
$6,507 |
| Spouse or common-law partner amount |
maximum of $7,298 |
Maximum of $7,429 |
| Amount for an eligible dependant |
maximum of $7,298 |
Maximum of $7,429 |
| Caregiver amount |
maximum of $3,730 |
Maximum of $3,796 |
| Amount for infirm dependants age 18 or older |
maximum of $3,730 |
Maximum of $3,797 |
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The amount of the non-indexed tax credits to be input into the RPS in Element 86 (Provincial Tax Credits Non Indexed Amount) is the total of lines 3 and 4 of the TD1BC form. The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1BC form.
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Yukon |
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Yukon has announced that the following personal tax credits will be indexed by 1.7% for 2005. |
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| Territorial Personal
Tax Credit amounts (indexing factor 1.7%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$8,012 |
$8,148 |
| Age amount |
maximum of $3,912 |
Maximum of $3,979 |
| Disability amount |
$6,486 |
$6,596 |
| Spouse or common-law partner amount |
maximum of $6,803 |
Maximum of $6,919 |
| Amount for an eligible dependant |
maximum of $6,803 |
Maximum of $6,919 |
| Caregiver amount |
maximum of $3,784 |
Maximum of $3,848 |
| Amount for infirm dependants age 18 or older |
maximum of $3,784 |
Maximum of $3,848 |
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The amount of the non-indexed tax credits to be input into the RPS in Element 86 (Provincial Tax Credits Non Indexed Amount) is the total of lines 3 and 4 of the TD1YT form. The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1YT form.
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Northwest Territories |
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The Northwest Territories has announced that the following personal tax credits will be indexed by 1.7% for 2005. |
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| Territorial Personal
Tax Credit Amounts (indexing factor 1.7%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$11,415 |
$11,609 |
| Age amount |
maximum of $5,583 |
Maximum of $5,678 |
| Disability amount |
$9,257 |
$9,414 |
| Spouse or common-law partner amount |
maximum of $11,415 |
Maximum of $11,609 |
| Amount for an eligible dependant |
maximum of $11,415 |
Maximum of $11,609 |
| Caregiver amount |
maximum of $3,784 |
Maximum of $3,848 |
| Amount for infirm dependants age 18 or older |
maximum of $3,784 |
Maximum of $3,848 |
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The amount of the non-indexed tax credits to be input into the RPS in Element 86 (Provincial Tax Credits Non Indexed Amount) is the total of lines 3 and 4 of the TD1NT. The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1NT.
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Nunavut |
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Nunavut has announced that the following personal tax credits will be indexed by 1.7% for 2005. |
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| Territorial Personal
Tax Credit Amounts (indexing factor 1.7%) |
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Amount Effective
January 1, 2004 |
Amount Effective
January 1, 2005 |
| Basic personal amount |
$10,495 |
$10,674 |
| Age amount |
maximum of $7,871 |
Maximum of $8,005 |
| Disability amount |
$10,495 |
$10,674 |
| Spouse or common-law partner amount |
maximum of $10,495 |
Maximum of $10,674 |
| Amount for an eligible dependant |
maximum of $10,495 |
Maximum of $10,674 |
| Caregiver amount |
maximum of $3,784 |
Maximum of $3,848 |
| Amount for infirm dependants age 18 or older |
maximum of $3,784 |
Maximum of $3,848 |
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The amount of the non-indexed tax credits to be input into the RPS in Element 86 (Provincial Tax Credits Non Indexed Amount) is the total of lines 3 and 4 of the TD1NU form. The amount of the indexed tax credits to be input into the RPS in Element 87 (Provincial Tax Credits Indexed Amount) is the total of lines 1, 2, 5, 6, 7, 8, 9, 10 and 11 of the TD1NU form.
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4 |
PROCEDURES/INSTRUCTIONS |
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4.1 |
Compensation systems are programmed to automatically reflect in the proper element the basic personal amount, the spouse or common-law partner amount, and the amount for an eligible dependant. |
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Employees who wish to change their personal tax credit amounts must complete both the federal and the applicable provincial or territorial TD1 forms. An employee who changes province or territory of employment or who moves to another province or territory should complete the appropriate provincial or territorial TD1 form. These forms are available from CRA tax services offices and at the following Internet address:
http://www.cra-arc.gc.ca/menu/AFAF_T_TD-e.html#ti |
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The Personnel-Pay Input Manual (PPIM) will be updated to incorporate the relative information contained in this Compensation Directive.
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5 |
INQUIRIES |
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5.1 |
Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
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| Original Signed by
R. Jolicoeur |
R. Jolicoeur
Director General
Compensation Sector
Finance, Accounting, Banking and Compensation
Reference(s): CJA 9007-7, 9007-8
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[Print Version]