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Filing Your Return -> Line 31260 Canada Employment Amount Tax Credit

Line 31260 Canada Employment Amount Tax Credit

Note: Before tax year 2019, line 31260 was line 363.

Income Tax Act s. 118(10)

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

bullet base amount of $1,000, indexed for inflation each year after 2007; and
bullet total employment income reported on lines 10100 and 10400 (prev. lines 101 and 104) of the tax return.

The tax credit is calculated by multiplying the lowest federal tax rate 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.

The Canada employment base amount is $1,245 for 2020 ($1,257 for 2021), both for the Federal and Yukon tax credit amount.

The Federal tax credit is claimed on line 31260 of Schedule 1.  The Yukon tax credit is claimed on line 58310 (was line 5834) of Schedule YT428.

To see the base amounts and tax rate for most non-refundable tax credits for Canada and all provinces and territories except Quebec, see the tables of non-refundable tax credits.  These tables also show the lowest tax rate in effect for the year.

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

Revised: January 30, 2021

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