Now that most of us have filed our 2011 Income tax returns, here are the 2012 Federal rates:

• 15% on the first $42,707 of taxable income, +
• 22% on the next $42,707 of taxable income (on the portion of taxable income over $42,707 up to $85,414), +
• 26% on the next $46,992 of taxable income (on the portion of taxable income over $85,414 up to $132,406), +
• 29% of taxable income over $132,406.

Click here to see 2012 Combined Federal and Ontario Personal Tax Rates available in our Library!

Elite Accounting is proud to support awareness for Organ and Blood donations by sponsoring a fundraising campaign this tax season! We have already made an initial contribution and will also be donating $3 for each Individual Income tax return prepared from now until April 30, 2012 to support Helene Campbell @alungstory. Donations can also be made directly at www.alungstory.ca. Register as an organ donor in Ontario at beadonor.ca and visit blood.ca!

There seems to be a lot of confusion around when the deadline is for contributing to an RRSP within the first 60 days of the following year.

The deadline to contribute to an RRSP and claiming the contribution on your 2011 tax return is February 29th, 2012.

If you are not sure what to contribute, connect with us and we can to assist you.

Be sure not to miss the deadline!

CPP Maximum 2012 | CPP Rates for the Year 2012
The maximum CPP contribution to the plan for 2012 will be increased by $89.10 to $2,306.70, representing an increase of about 4% over the last year and the maximum self-employed CPP contribution for 2012 will be $4,613.40. The CPP maximums for the Year 2011 were $2,217.60 and $4,435.20. The CPP Rates, effective January 1, 2012, forecast to remain unchanged at 4.95% of pensionable earnings. The basic exemption amount for 2012 expects to remain $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

 EI Maximum 2012 | EI Rates for the Year 2012
Your rate of EI premiums (excluding employees working in the province of Quebec), for the 2012 taxation year forecasts to remain at 1.73% of insurable earnings. The annual maximum insurable earnings will be increasing from $44,200 to $45,900. The maximum EI contribution to the plan for 2012 will be $839.97. The EI maximum for the Year 2011 was 786.76. Once you reach the annual maximum premium deduction of your EI maximum in 2012, you will see an increase in the amount of your net pay as there will no longer be EI deductions withheld from your pay.