Canada Employment Credit
For 2007, taxpayers with employment income will see an increase from $250 to $1,000 for this non-refundable tax credit for work-related expenses. The maximum amount on which it is calculated will be the lesser of the taxpayer’s employment income and $1,000. This will provide a maximum tax savings of $150 this year. In future years the maximum Canada employment amount will be indexed to inflation. Note that all income included on Lines 101 and 104 qualify for the Canada employment amount. This includes benefits reported to retirees such as premiums to a life insurance plan paid by a former employer. That is because these benefits are technically considered to be a benefit from employment even though the taxpayer is no longer working.
