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 and exemption 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.
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Notice to the reader
This measure has received Royal Assent.
On December 9, 2019, the Government 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.
Employers and payers who need time to implement these changes should refer to Question 7.
Question and answers
1. 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
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