Filing Your Return

Line 363 Canada Employment Amount Tax Credit

Income Tax Act s. 118(10)

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 2011 and 2012) by the lesser of the base amount and total employment income.

Yukon also provides a non-refundable tax credit for the Canada employment amount.  The tax credit is calculated the same way as the federal credit, but using the lowest Yukon tax rate.  To see the base amounts and 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 base amount is indexed for inflation each year, and is $1,095 for 2012 ($1,065 for 2011), 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: February 18, 2012