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Nov 13, 2013

CRA announces 2014 indexation adjustment for personal income tax, benefit amounts, annual limit for TFSAs

Indexation increases by 0.9 per cent in 2014
    
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Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index (CPI) data as reported by Statistics Canada.

Increases to tax bracket thresholds, amounts relating to non refundable credits, and most other amounts will take effect on Jan. 1, 2014. However, increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax credit will take effect on July 1, 2014, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2013 and 2014 tax years. It reflects an indexation increase of 0.9 per cent for 2014.

2014

2013

Tax bracket thresholds

Taxable income above which the 22 per cent bracket begins

$43,953

$43,561

Taxable income above which the 26 per cent bracket begins

$87,907

$87,123

Taxable income above which the 29 per cent bracket begins

$136,270

$135,054

Amounts relating to non-refundable tax credits

Basic personal amount

$11,138

$11,038

Age amount

$6,916

$6,854

Net income threshold

$34,873

$34,562

Spouse or common-law partner amount (maximum)

$11,138

$11,038

Spouse or common-law partner amount (maximum if eligible for the family caregiver amount)

$13,196

$13,078

Amount for an eligible dependant (maximum)

$11,138

$11,038

Amount for an eligible dependant (maximum if dependant eligible for the family caregiver amount)

$13,196

$13,078

Amount for children under age 18 (maximum per child)

$2,255

$2,234

Amount for children under age 18 (maximum per child eligible for the family caregiver amount)

$4,313

$4,274

Canada employment amount (maximum)

$1,127

$1,117

Infirm dependant amount (maximum per dependant)

$6,589

$6,530

Net income threshold

$6,607

$6,548

Caregiver amount (maximum per dependant)

$4,530

$4,490

Caregiver amount (maximum per dependant eligible for the family caregiver amount)

$6,588

$6,530

Net income threshold

$15,472

$15,334

Disability amount

$7,766

$7,697

Supplement for children with disabilities (maximum)

$4,530

$4,490

Threshold relating to allowable child care and attendant care expenses

$2,654

$2,630

Adoption expenses (maximum per adoption)

$11,774

$11,669

Medical expense tax credit — three per cent of net income ceiling

$2,171

$2,152

Refundable medical expense supplement

Maximum supplement

$1,152

$1,142

Minimum earnings threshold

$3,363

$3,333

Family net income threshold

$25,506

$25,278

Old age security repayment threshold

$71,592

$70,954

Certain board and lodging allowances paid to players
on sports teams or members of recreation programs

Income exclusion (maximum per month)

$338

$335

Tradesperson’s tools deduction

Threshold amount relating to cost of eligible tools

$1,127

$1,117

Goods and services tax/harmonized sales tax credit

Adult maximum

$268

$265

Child maximum

$141

$139

Single supplement

$141

$139

Phase-in threshold for the single supplement

$8,685

$8,608

Family net income at which credit begins to phase out

$34,872

$34,561

Canada child tax benefit

Base benefit

$1,446

$1,433

Additional benefit for third child

$101

$100

Family net income at which base benefit begins to phase out

$43,953

$43,561

National child benefit (NCB) supplement

First child

$2,241

$2,221

Second child

$1,982

$1,964

Third child

$1,886

$1,869

Family net income at which NCB supplement begins to phase out

$25,584

$25,356

Family net income at which NCB supplement phase-out is complete

$43,953

$43,561

Child disability benefit (CDB)

Maximum benefit

$2,650

$2,626

Family net income at which CDB supplement begins to phase out

$43,953

$43,561

Children’s special allowances (CSA)

CSA Base Amount

$3,687

$3,654

Tax-Free Savings Account (the indexed amount has been rounded to the nearest $500)

Annual TFSA dollar limit

$5,500

$5,500

Source: Statistics Canada

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