Whats New for 2012 Tax Return

1. Employee's profit-sharing plan (EPSP) (lines 229 and 418) - You may have to pay a new tax if you are a specified employee and the contributions that your employer made to your EPSP for the year exceed a threshold. If you are subject to this new tax, you may be eligible for a deduction on line 229. For more information, see pages 28 and 50.

2. Canada Pension Plan (CPP) working beneficiary contributions (line 308) - As of January 1, 2012, the rules for contributing to the CPP changed. The changes apply to you if you are an employee or self-employed individual, if you are 60 to 70 years of age, and if you are receiving a CPP or Quebec Pension Plan retirement pension. For more information, see page 37, or go to www.cra.gc.ca/cpp. To find out how the changes may affect your CPP benefits, go to www.servicecanada.gc.ca/cppchanges.

3. Medical expenses (lines 330 and 331) - Prescribed blood coagulation monitors for individuals who require anti-coagulation therapy are now eligible as medical expenses. For more information, see Guide RC4064, Medical and Disability-Related Information.

4. Investment tax credit (line 412) - Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2013. For more information about investment tax credits, see page 49.

5. Family caregiver amount - If you have a dependent with any physical or mental impairment, you could be eligible for an additional amount of $2,000 in the calculation of certain non-refundable tax credits. For more information, see page 33. -Information from www.cra-arc.gc.ca

Author: Ann Guo