Basic Personal Amount to Rise to $10,822 in 2012

The federal government has announced increases to federal tax brackets, non-refundable and refundable credits based on an indexing increase of 2.8% for 2012. This brings the Basic Personal Amount, Spousal Amount and Amount for Eligible Child up to $10,822. The latter two amounts will be further increased to $12,822 under the new Family Caregiver Tax Credit. The indexing adjustment also raises the top tax bracket up to $132,406; this is the amount of taxable income that will be subject to the top federal tax rate of 29%.

Planning for tax free zones, income ceilings for income-tested programs andinter-family use of transferrable tax creditswill be the subject of the January T1 Tax Update. For more information see Distinguished Advisor Workshop