eBook Summary – Chapter 19

Taxes Payable – Personal

Definition Summary of federal tax calculation Special calculations

Marginal tax rate: Total federal income tax on taxable income $xxx Special calculations for:
tax rate that is payable on an Subtract Non-refundable tax credits xxx  Medical expenses
-
additional dollar of income. Federal dividend tax credit - xxx  Donation tax credit
Non-refundable tax credits: Basic federal tax $xxx  Dividend tax credit
direct reduction of tax Subtract Federal foreign tax credit - xxx  Foreign business and non-
payable; cannot be carried Federal political tax credit - xxx business income tax credit
forward if not used in the year. Other federal tax credits - xxx  Political contribution tax credit
Federal tax before OAS clawback or other $xxx
Refundable tax credits: repayment
direct reduction of tax Add OAS clawback + xxx
payable; if tax payable is nil, EI repayment + xxx
any leftover credit is refunded. CPP payable on self-employment earnings xxx
+
Total federal tax $xxx

Common non-refundable credits

 CPP/QPP if amount paid

 Basic — all individuals
 Age — if age 65 prior to end of
taxation year
 Spousal — if supports spouse or
common law partner
 Eligible dependant — if not
entitled to spousal but supports
an eligible dependent
 Canada caregiver — if
supporting an infirm adult relative
 CPP/QPP if amount paid
 EI – if amount paid
 Canada Employment – if earning
employment income
 Disability – impairment restricting
 EI — if amount paid
 Canada employment — if
earning employment income
 Disability — impairment
restricting basic activity of daily
living
 Adoption — if adopt a child
 Medical — for expenses of self,
spouse and children <18
 Medical expenses of other
dependents
© 2019 Chartered Professional Accountants of Canada
 Home accessibility — if >65 and
eligible for disability credit
 Home buyers’ amount — if
acquire a qualifying home
 Pension — if >65 and have
eligible pension
 Interest on student loans — if
amount paid, no max
 Tuition — if eligible tuition