Personal Grants Benefits

If you are like so many other Canadians you are probably seeing all sorts of large grants being awarded to big businesses and government funded agencies, and wondering where the benefits are for people like you. Well, rest assured there are personal grants benefits and stimulus incentives to be had; you just need to know how to spot them. Below are just a handful of the most recent government tactics to help stimulate the economy and keep families on their feet.

Employment Insurance Special Benefits for the Self-Employed

Effective January 2010 self-employed Canadians are able to apply for EI maternity, parental/adoption, sickness and compassionate care benefits on a voluntary basis. It takes a full year of making premium payments into the plan before you can start claiming self-employed EI benefits, but as a transitional measure, individuals who opt in as of April 1, 2010 are eligible to receive benefits starting January 2011. This money is awarded as a means to support these independent workers when there is an interruption to their earnings in accordance with one of the above categories.

Upgrades to the Working Income Tax Benefit

Many low-income workers have traditionally felt like there was no point to working since the amount that they were making was much the same as the amount of money that they could be claiming through welfare. Thus in order to give these workers incentive to get a job the Canadian government is offering an increased working income tax benefit (WITB) that will ensure increased earnings to those who work. The enhancement provides additional tax relief of $580 million for 2009 and subsequent taxation years.

Personal Income Tax Relief

For the 2009-2010 tax year the Canadian government gave $1,885 million in tax relief, and Canadian can expect that number to increase to $1,950 million in the 2010-2011 tax year. How will the average Canadian notice these changes?

Well, the government has increased the personal tax brackets to allow Canadians in the first two tax brackets to make more money before being thrust into that next category. Canadians will see this change reflected either in their pay stubs, or when they file their tax return for 2009.
The new categories are as follows:

  • $ 0.00 – $10,320 (formerly $ 9,600) – No Federal Income Tax
  • $ 10,321 – $ 40,726 (formerly $ 37,885) – Federal Income Tax at rate of 15%
  • $ 40,727 – $ 81,452 (formerly $ 75,769) – Federal Income Tax Rate of 22%

*Anything above this has a Federal Income Tax Rate of 26%