Now that the RRSP season is behind us, Canadians turn their attention to the deadline for filing their 2009 income tax return; April 30th 2010. Depending on your situation, here are a number of non-refundable federal tax credits that can help reduce your tax base, minimizing the amount of income tax you are required to pay for the 2009 fiscal year:

Home Renovation Tax Credit (HRTC):

• A temporary tax credit, for costs incurred after January 27, 2009 and before February 1, 2010.
• Credit is 15% of eligible expenditures for renovations or alterations of an enduring nature, and is integral to, or built into an eligible dwelling.
• Applies to expenditures over $1,000, up to $10,000. The maximum tax credit amount is $1,350 per family ($9,000 x 15%).

Pension Income Tax Credit:

• Some pension income may qualify for a federal and provincial/territorial pension income tax credit.
• Can be transferred to a spouse or common-law partner if it is not fully used by the taxpayer.
• If a taxpayer is under the age of 65 and receiving pension income eligible for the pension tax credit (qualified pension income) and splits their income with their spouse or common-law partner, the latter will also be eligible for the pension tax credit, regardless of age.
• Pension income at age 65 can be converted from RRSPs to RRIFs or purchased as an annuity.

Spouse or Common-Law Partner Amount:

• If your spouse or common-law partner earned less than $10,320, follow the calculation on line 303 of your return to see what amount you can claim.
• If you were single, divorced, separated, or widowed you can claim a maximum amount of $10,320 minus the income for any dependent. This amount is called the “Amount for an eligible dependent” and is found on schedule 5 of your return.

Tax Credit for Public Transit:

• To help cover the cost of passes for buses, streetcars, subways, commuter trains and local ferries.
• Can be claimed by the taxpayer, their spouse or common-law partner, or their children under age 19.
• The pass must display: duration (one month at least or longer), date or period of validity, name of the issuing transit authority/organization, amount paid, identity of the rider (either by name or unique identifier).

Children’s Fitness Tax Credit:

• Available to individuals for registration and membership costs of up to $500 per child who is, under 16 years of age at the beginning of the taxation year, or under 18 for a child with a disability.
• Calculated using the lowest tax rate (15% for 2009) – maximum tax credit per child for 2009 is $75.
• For prescribed programs of physical activity which must contribute to cardio-respiratory endurance of the child and to one or more of the following: muscular strength, muscular endurance, flexibility, and balance.

Tuition and Education Amounts:

• Claim fees paid for post-secondary courses of $100 or more for each educational institution; the institution must provide you with an official tax receipt or a form T2202A.
• A portion of the education amounts can also be transferred from spouses and children; complete the calculation on the back of your T2202A or schedule 11 in your income tax forms to find out what amount is eligible.

Medical Expenses:

• Transferable between spouses.
• Medical expenses can include amounts paid outside of Canada.
• They must be more than 3% of your net income or $2,011, whichever is less.
• The spouse with the lowest income should claim all expenses.
• Claim the expenses of all immediate family members including parent, grandparent, brother, uncle, niece, who depended upon you for support during the tax year; the total of these expenses must be more than the lesser of $2,011 or 3% of the dependent’s net income for the year up to a maximum of $10,000.
• Claim medical expenses paid in any 12-month period ending in 2009 that were not claimed in the previous year.

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