The Canada Employment Credit was introduced in 2006 in recognition of work-related expenses incurred by employees. For 2007, the tax credit provides tax relief on the lesser of $1,000 and the individual's employment income for the year.
The tax credit for a particular taxation year is calculated at the lowest personal tax rate for the year. For 2007 this rate is 15 per cent, yielding a maximum tax savings of $150.
Remember to take advantage of this and all other tax credits available to you.
Information for Tax Tips is provided as a public service by the Chartered Accountants of British Columbia.