New Tax Numbers for the year 2013

Change in Tax Numbers

With the beginning of New Year, Canadians have to get geared for a new set of tax numbers. Tax payers will have to bear an indexation increase of 2%. The new tax numbers are effective from January 1, 2013.

Some of the changes are mentioned below:

Change in Basic Personal Amount:

For the year 2013 the basic personal amount is $11,038 which is eligible for a non-refundable tax credit. Most of the non-refundable tax credits have been kept at 15%.

Federal Tax brackets:

The taxes would be charged at the rate starting with 15% which is the minimum and the maximum being 29%. For an amount up to $43,561 the percentage would be 15. For an amount between $43,561 to $87, 12 it would be 22%. For any amount beyond $135,054 the percentage would be 29.

Changes in Canada Pension Plan

In the year 2013, the pensionable earning would be $1,000 more than last year and the exact amount would be $51,100.  An employee-employer can make a maximum contribution of $2,356 whereas a self-employed person can make a maximum contribution of $4,712.

Change in TFSA contribution limit

In 2013, the maximum limit to make contributions in this account would be $5,500 which was $5,000 till last year. The increase has been made to make things easier for the contributors and account holders.

Preparation to be done by the tax payers

Tax payers should approach the right consultant and make sure that their planning for the year is done right in the first few months so that when they actually have to pay the taxes they don’t feel burdensome.

A consultant would give you the right kind of guidance on calculating the exact amount of tax you may need to pay while filing your returns.

The changes may not look to be quite significant but they may have a bigger impact on your earnings and savings too.

At this juncture, the best approach is to get prepared so that the contributions can be made accordingly and also you can have a control on your expenditure. Change in tax numbers has multifarious impact on a person’s earnings, expenditure and savings too. So, one need to make a careful study about the changes, in order to avoid any difficult situation at the end of the year.