Filing Your Return

Canada employment amount tax credit

A non-refundable tax credit is available for the first $1,000 of employment income earned.  The credit is based on the lesser of

The tax credit is calculated by multiplying the lowest federal tax rate (15% for 2009) by the lesser of $1,000 and total employment income.

Yukon also provides a non-refundable tax credit for the Canada employment amount.  The tax credit is calculated by multiplying the lowest Yukon tax rate by the lesser of $1,000 and total employment income.  To see the tax rate for non-refundable tax credits for Canada and all provinces and territories except Québec, see the tables of non-refundable tax credits.

The Canada employment amount is indexed for inflation each year, so is $1,044 for 2009, both for the Federal and Yukon tax credit amount.

The Federal tax credit is claimed on line 363 of Schedule 1.  The Yukon tax credit is claimed on line 5834 of Schedule YT428.

No other provinces or territories provide a Canada employment amount tax credit at this time.

Revised: July 19, 2010