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Canada and the United States

Canadian Tax Changes for 2012

There are relatively minor changes for the 2012 tax year. Certain seniors with self-employment income may want to make a CPP election on Schedule 8.

Mandatory Electronic Filing
Starting in January 2013 (for 2012 tax returns), CRA requires tax preparers paid to prepare more than 10 returns in a year (T1 or T2) to eFile those returns.

Canada Pension Plan Election
If you were 60-70 years old in 2012, receiving a CPP benefit, and earning employment and/or self-employment income, you may need to make CPP contributions under the new rules that came into effect on Jan. 1, 2012. An employee would have had contributions withheld from their salary, while a self-employed person calculates and remits contributions with their tax return.

However, taxpayers aged 65 or over during 2012 can elect to stop paying CPP contributions. An employed person would have submitted Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election to their employers. Taxpayers earning self-employment income (only) can elect to stop paying CPP contributions on Schedule 8 of their 2012 tax return, by entering the month the election begins in box 372 (more info).

Family Caregiver Amount
An additional $2,000 non-refundable tax credit is available if you have a dependant with an impairment in physical or mental functions. The credit is calculated on Schedule 5 and carried to the appropriate line on Schedule 1 (more info).

Other Changes
There are adjustments to Medical Expenses, the Investment Tax Credit, and Employees Profit Sharing Plans (more info).


The information on this website, and the use of this website, are both provided without warranty of any kind. Income tax rules change every year and some information may be out of date. All readers wishing to take advantage of the information offered here should consult a qualified income tax preparer. In no event will Brad Howland, Howland Tax Services, or this website be liable for any damages, including lost profits, arising out of the information offered on this website, or the usage of this website. All material on this website Copyright © 2001-2017 by Howland Tax Services, Inc. Please contact us for permission to use this material in any form. Website designed and maintained by Brad Howland.