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"WEEKEND STAR" FRIDAY, MARCH 9, 2001 - 1 Here's a quick look at some of the changes A few changes to consider when doing your taxes Disability Tax Credit Eligibility for the dis- ability tax credit has been extended to individuals who must undergo therapy totalling at least 14 hours per week in order to sus- tain their vital functions. Examples of individuals who may benefit from this extension include those with severe kidney dis- ease requiring dialysis in order to prevent renal fail- ure. There is also a new $2,941 supplement to the disability amount for dis- abled children under the age of 18 at the end of the year. This will increase their maximum claim to $7,234. However, the sup- plement is reduced by child care expenses and attendant care expenses in excess of $2,000 that are claimed in respect of the child. The list of relatives to whom the unused portion of a disability tax credit may be transferred has also been expanded to include brothers, sisters, aunts, uncles, nieces and nephews. The maximum deduc- tion for child care expens- es has also been increased SCUGOG FINANCIAL _| TH THE DRIVE TQ PORT PERRY! ~GUARANTEEDIINVESTMEN.TIS. weer eo Annual Rates ° GIC RRSP 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 1 YEAR CASHABLE 4.750% 4.900% 5.100% 5.200% 5.450% 4.400% 4.750% 4.900% 5.100% 5.200% 5.450% AFTER 60 DAYS MINIMUM $1,000. Rates Effective 07/03/01 - Subject to change without notice. 250 Queen Street, Port Perry 985-3832 (next to Shoppers Drug Mart) ASSOCIATED WITH 1-888-595-4413 Serving Scugog for over 25 years "SHEPHERD & POWELL The bad news is the government may have kept too much of your money last year. The good news is we can help you get it back. When we prepare your 2000 return, we'll check last year's return for free. If you should' ve gotten more money back, we'll prepare an adjustment for a small fee. H&R BLOCK 174 Perry St., Port Perry (905) 985-9803 from $7,000 to $10,000 for disabled children. - Medical Expenses Qualifying medical expenses now include costs relating to the con- struction of a principal place of residence where the taxpayer lacks normal physical development or has a severe and pro- longed mobility impair- ment. The expenses must have been incurred to enable the taxpayer to gain access to or be mobile or functional within the home. Previously such expenses only qualified if they related to the renova- tion of an existing dwelling. Attendant Care Deduction The deduction for attendant care expenses has been extended to dis- abled taxpayers who require an attendant in order to attend school or Lindsay (705) 324-3579 Uxbridge (905) 852-9714 ROGER B. MOASE CHARTERED ACCOUNTANT Income Tax Return Preparation Electronic Filing Individuals, Small Business, Farms, Corporations "Personal, Confidential Service... and a Real Person Answers the Phone" Le) 175 North Street, Port Perry (905) 985-8893 Email: rbmoaseca@sympatico.ca an educational institution. Previously the deduction was only available for tax- payers who needed an attendant to work. The deduction is limited to 2/3 of earned income plus, where the taxpayer is attending a school or edu- cational institution, 2/3 of the lesser of: o The taxpayer's income from other sources (to a maximum of $15,000); and 0 $375 multiplied by the number of weeks in atten- dance of the school or edu- cational institution. You must complete Form T929 if you are claim- ing attendant care expens- es. Offsetting of Interest on Income Tax Overpayments and Underpayments Although refund inter- est is included in income for tax purposes, a deduc- tion is not allowed for arrears interest owed to ...you can create pension income for your spouse by contributing to a SPOUSAL RRSP? IBDO BDO Dunwoody LLP Chartered Accountant and Consultants the government. This inequity has been partially remedied by a new rule that makes refund interest taxable only to the extent that it exceeds any arrears interest that accrued over the same period. Exemption for Scholarships The exemption for the first $500 of scholarship income has been raised to $3,000. However, the $2,500 increase will only apply if you are enrolled in a program that qualifies for the education tax credit. Investment Tax Credit for mineral exploration expenses A temporary 15 per cent investment tax credit has been introduced for min- eral exploration expenses incurred in. Canada pur- suant to a flow-through share - agreement. The credit may be claimed in respect , of incurred by a corporation after Oct. 17, 2000 and before 2004 that are renounced in favour of an individual taxpayer pur- suant to a flow-through expenses, . share agreement. Your cumulative Canadian exploration expense pool for 2001 will be reduced by any credits claimed in 2000. Provincial Tax-On- Income (TONI) The provinces may now base their tax rates on tax- able income as opposed to a percentage of basic . federal tax. British Columbia, Manitoba, New Brunswick, Nova Scotia and Ontario have switched to the tax-on-income sys- tem for the 2000 taxation year. The remaining provinces will switch in 2001 (except for Quebec, which will continue to administer its own tax sys- tem). The territories will continue with the tax-on- tax system. The new system allows the provinces to set their own tax brackets and, with- in certain limitations, cre- ate their own set of non- refundable tax credits. 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