Line 300: Basic Personal Amount

by Tax Guy - Burlington Accountant on March 14, 2012 Print This Post Print This Post

The basic personal amount is a tax credit available to anyone who paid income tax during the tax year. The impact of this tax credit is that any income you earned up to the amount of the credit is essentially tax free.

For the 2011 tax year, the federal Basic Personal Amount was $10,527 and will reduce the amount of tax payable on the first $10,527 by $1,579. Therefore, the first $10,527 of income earned in 2011 will not be taxed.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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{ 20 comments }

The Rat March 23, 2010 at 11:29 pm

Interesting, I didn’t know it was that specific amount. Did CRA raise that level a bit over the past few years? I could have sworn that the basic personal amount was below the $10,000 mark not long ago.

Tax Guy March 25, 2010 at 9:07 pm

Last year the basic personal amount increased above $10,000. It generally increases annually.

Cristina March 28, 2010 at 5:51 am

You say that “The basic personal amount is a tax credit available to anyone who paid income tax during the tax year”.
I want to ask if this amount is also available for someone who received social help and didn’t pay any income tax?

Tax Guy March 29, 2010 at 9:11 pm

Hi Cristina,
The credit is non-refundable so if no tax was payable to begin with, the credit will not create a refund. However, someone who received social assistance should sill file a return as there may be some provincial refundable credits. Filing also entitles you to the GST credit as well as some other social assistance for seniors.

Andreea March 10, 2011 at 2:43 pm

Do you still have to pay CPP for that amount?

Tax Guy March 10, 2011 at 4:53 pm

CPP is based on pensionable self-employment earnings. Line 303 is a tax credit.

casey January 26, 2012 at 10:00 am

In 2009, I earned a “total income” of $8481 (line 150) with taxable income of $4756 (line 260).
My total refundable tax credits were $3,330 (line 350).
So, in light of the explanation of “basic personal amount” above, my question is about why, on line (C)/404, it says “tax on taxable income”. If my total earnings were well below the basic personal amount, what does this “taxable income” refer to please? Thanks.

casey January 26, 2012 at 10:00 am

In 2009, I earned a “total income” of $8481 (line 150) with taxable income of $4756 (line 260).
My total refundable tax credits were $3,330 (line 350).
So, in light of the explanation of “basic personal amount” above, my question is about why, on line (C)/404, it says “tax on taxable income”. If my total earnings were well below the basic personal amount, what does this “taxable income” refer to please? Thanks.

casey January 26, 2012 at 10:01 am

In 2009, I earned a “total income” of $8481 (line 150) with taxable income of $4756 (line 260).
My total refundable tax credits were $3,330 (line 350).
So, in light of the explanation of “basic personal amount” above, my question is about why, on line (C)/404, it says “tax on taxable income”. If my total earnings were well below the basic personal amount, what does this “taxable income” refer to please? Thanks.

casey February 23, 2012 at 2:01 pm

In 2009, I earned a “total income” of $8481 (line 150) with taxable income of $4756 (line 260).
My total refundable tax credits were $3,330 (line 350).
So, in light of the explanation of “basic personal amount” above, my question is about why, on line (C)/404, it says “tax on taxable income”. If my total earnings were well below the basic personal amount, what does this “taxable income” refer to please? Thanks.

Tax Guy February 24, 2012 at 12:28 pm

Your taxable income is your taxable income. The basic tax before credits is based on this amount.

The credits then reduce the tax to zero.

Ebu March 20, 2012 at 3:53 pm

Last year my my total income on line 150 was $ 40,174 and my wife was $2003. She was a student and she also transfer her tuition credit to me which was about $ 2000. My money I received from CRA was $ 2900. This year my income was $38,000(line 150) and my wife did several summer job and made $ 8000(line 150) but some of the jobs took very little tax on her check.
When I did my return this year which I did not send yet, I only get 600 dollar and she got 300. Last year I did my tax with an efile service provider but this year I decided to do it on my own with turbo tax..I am wondering If I there is something wrong or maybe the reason been my wife did not pay much tax for the year…Thanks

Tax Guy March 20, 2012 at 4:53 pm

Last year you got part of her basic personal credit plus education and tuition. This year the spousal credit is less because she made more.

Miiockm March 31, 2012 at 3:27 pm

I have found a lot of people don’t know this and think everything they make is taxed at the highest tax bracket.

Tax Guy March 31, 2012 at 9:35 pm

It is a very common misconception.

pearl April 1, 2012 at 8:56 pm

My husband passed away last year in March. His only income was the disability amount, which I transferred it to me. Can I also use his personal basic amount??? If yes where do I enter that amount, because I’m not getting anything from his side. I’m using Ufile for our income tax returns. I would really appreciate your help.

Tax Guy April 2, 2012 at 3:28 pm

Hi Pearl,
I’m not sure I understand the question. The disability amount is not income but rather it is a tax credit. Are you saying that your husband was receiving a CPP Disability pension? If so, there are no additional credits.

pearl April 3, 2012 at 8:15 pm

You’re right, I wasn’t clear. I meant using the basic personal amount as credit… and I have your answer. Thank you very much for your prompt reply.

Krista April 9, 2012 at 1:58 pm

Could someone please tell me how far back can I claim rsp’s against a sole-proprietorship?
I am currently helping someone with their 2001 taxes and working my way up to this year.
Many thanks!

Ray October 2, 2012 at 10:14 pm

My total income listed on line 150 is $7000. What is my basic personal amount?

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