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Home » Employee Info

Changes to Federal Personal Exemptions for 2020

Submitted by on 2020/02/05 – 8:30 am

On December 9, 2019, the Government of Canada tabled a Notice of Ways and Means Motion that proposes to amend the Income Tax Act to increase the Basic Personal Amount to $15,000 by 2023. The increase would be phased in starting in 2020. As a result, the Canada Revenue Agency (CRA) has recently released updated versions of the following:

What is the Basic Personal Amount?

  • The Basic Personal Amount (BPA) is a non-refundable tax credit that can be claimed by all individuals. The purpose of the BPA is to provide a full reduction from federal income tax to all individuals with taxable income below the BPA. It also provides a partial reduction to taxpayers with taxable income above the BPA.
  • A non-refundable tax credit reduces what you may owe. However, if your total non-refundable tax credits are more than what you owe, you will not get a refund for the difference.

Who is impacted by the Notice of Ways and Means Motion and what action should I take as a MacEwan University employee?

All employees who earn an income over $150,000 are encouraged to complete the 2020 Personal (Federal)Tax Credits Return (TD1). By doing so, your income tax will be calculated accurately as a result of this new legislative change. Please return the form(s) to Payroll Services at 10-600 (University Service Centre) or send a scanned copy by email to biweeklypay@macewan.ca.

If you have any questions, please contact Payroll Services at 780-497-4222.