Can some one please explain this in a little more detail?
"Taxpayers with employment income will be allowed a non refundable tax credit to compensate for employment related expenses such as work clothes and commuting expenses for wich they are not allowed specific deductions
"For 2006 the ammount on wich the credit is based will be the lesser of:
~the taxpayer's employment income,
~$250"
I understand the ammount on wich the credit is based. Is this something I am going to need to provide reciepts for? Is it just an extra $250 on your refund?
Im in BC but this is Federa taxes
2007-01-19 21:01:31 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Canada
Please don't tell me to go to a tax specialist. I am in a tax course now but we are doing 2005 taxes for now and that credit is new this tax season
2007-01-19 21:03:53 · update #1
it is not a pecentage of the income, it IS your income OR $250. Wich ever is less.
2007-01-19 21:21:28 · update #2
Yes, this is new for 2006. Anyone with employment income can claim this credit. So on line 363, you simply put $250 OR the amount of your income if it is less than $250. It just gets added onto your non-refundable tax credits in the federal tax portion of your tax return to reduce your tax liability. It is a non-refundable credit so, if you don't make enough income to be taxable, it doesn't really count and you can't carry it forward like tuition amounts. And then the amount gets multiplied by 15.25% so you really only see about $38 of that $250. You do not need to provide receipts. As long as you have a T4 that shows employment income, you are eligible for this credit. I hope this helps. The income tax guide for 2006 really doesn't give any more info than you already have, so I hope this helps. =)
2007-01-20 09:33:46 · answer #1 · answered by LaLa 6 · 0⤊ 0⤋
Simple answer - you can claim a 'credit' (reduce your tax liability) if you had to pay for work-related clothing or commuting charges.
The limit is $250 (or less if you made less than $250 during the year)
Receipts are usually a good idea for audit purposes.
2007-01-21 02:21:14 · answer #2 · answered by p_rutherford2003 5 · 0⤊ 0⤋
no, this is not extra $250 refund. this is a tax credit. i dont know the calculation, but the credit is a % of the income (maximum amount of $250). so it will be a small amount. it will credited against any tax you owe. if you dont owe any tax, it will not be refunded to you however.
2007-01-20 05:17:12 · answer #3 · answered by tma 6 · 0⤊ 0⤋
This is a non refundable tax credit. You will not have to provide receipts. It acts like a deduction on your taxable income.
2007-01-20 11:49:30 · answer #4 · answered by Hamish 7 · 0⤊ 0⤋