Tax Tips Helpful Information You Should Know

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Tax TipsHelpful Information You Should Know

Reduce the taxes you pay

Manage your family income

Use expenses to best advantage

Consider tax changes

Canada employment credit

Tax credit on employment-related purchases Computers,

uniforms and supplies

Tax relief on the lesser of $500 or annual income

Tradespeople’s tool expense

Claim the cost of new tools

Excess of $1,000 up to a maximum of $500

Certification required from employer

Textbook Tax Credit

Students entitled to tax credit for textbooks

$65 for full-time students

$20 for part-time students

Unused amounts carried forward to a future year

Scholarship and bursary income

Exempt from tax

Amounts received in connection with enrolment

Fitness Tax Credit (2007)

Claim up to $500 for physical activity programs

Children under 16 years of age

Refundable Medical Expense Supplement (RMES)

RMES increased from $767 to $1,000

Reduced when income exceeds $22,140

Transit passes

Tax credit for public transit Local bus,

streetcar, subway, commuter train or bus and local ferry

Publicly-listed securities

Includes mutual funds and segregated funds

Donations to charities have been reduced to zero and are exempt from tax

Canadian fishers

$500,000* lifetime capital gains exemption

Includes real property, fishing vessels, eligible capital property

Tax-deferral on transfers

*The 2007 budget has proposed an increase to this amount

Universal Child Care Benefit (UCCB)

Receive $100 per month

For each child under age 6

Must apply for credit

Taxable income

Important Notes

The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.

Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including: segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts.

Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.