New in taxes for 2010

Here are the major changes per CRA guide:

Universal Child Care Benefits (UCCB): A single parent can choose to include all UCCB amounts in the dependant’s income.

Elect to defer Security option benefits: If you exercised an option and bought eligible securities, the election to defer the benefits will no longer be available.

Special relief for tax deferral elections on security option benefits: You may elect for special relief in respect of gains from a disposition of eligible securities on which you elected in a previous year to defer the option benefits.

Scholarship exemption and Education amount: Programs consisting mainly of research are eligible for scholarship exemption and the education amount only if they lead to a college or university degree. Post-doctoral fellowships are taxable. For a scholarship received with a part-time program for which you can claim the part-time education amount, scholarship exemption is equal to the amount of tuition paid plus the cost of related materials.

U.S. Social Security benefits: You may be eligible to claim a deduction of 50% of the benefits received.

Employment Insurance premiums on self employment and other eligible earnings: You may be able to enter into an agreement with the Employment Insurance Commission to participate in the new EI Measures for the Self Employed People.

Medical expenses: Cosmetic procedures qualify as medical expense only if they are required for medical or reconstructive purposes.

Investment tax credit: Eligibility for the mineral and exploration tax credit has been extended to flow-through shares agreements up to April1, 2011.

Rollover of RRSP proceeds to a registered disability savings plan (RDSP): The existing RRSP rollover rules will be extended to allow a rollover of a deceased individual’s RRSP proceeds to the RDSP of the deceased individual’s financially dependant infirm child or grandchild.