Tax tips Helpful information you should know

1. Tax tipsHelpful information you should know

2. Child tax credit

3. Universal Child Care Benefit • $100 a month per child under age 6 • Non-refundable tax credit of $2,000 for each child under 18 • Tax savings of up to $300* per child *Reflects the reduction to 15% (from 15.5%) in the lowest personal federal tax rate as announced in the October 30, 2007 federal Economic Statement.

4. Spousal and other amounts

5. Tax credit • Increased from $7,581 to $9,600* for 2007 • Credit amounts will increase to match increases in basic personal amount *Reflects the increase to $9,600 (from $8,929) as announced in the October 30, 2007 federal Economic Statement.

6. Registered Educations Savings Plans (RESPs)

7. Providing more flexibility • Annual contribution limit of $4,000 has been eliminated • Lifetime RESP contribution limit increased to $50,000 from $42,000

8. Canada Education Savings Grant (CESG) • Maximum annual RESP contribution to qualify for the 20% CESG has increased to $2,500 from $2,000 • Maximum annual CESG per beneficiary increased to $500 from $400 per year • Maximum CESG for a year has increased to $1,000 from $800 • Lifetime CESG limit of $7,200 has not changed

9. Registered Disability Savings Plans (RDSPs)

10. Introducing • RDSPs, the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) • Those who qualify for disability tax credit may establish RDSP • Contributions are not deductible • May qualify for a CDSG and a CDSB • Maximum lifetime contribution is $200,000

11. Investment income on contributions • Will accumulate tax-free • Only investment growth, CDSG & CDSBs will be included in beneficiary’s income • Payments will not affect other benefits • Beneficiary or legal rep. entitled to receive payments • Contributors not entitled to a refund

12. Lifetime capital gains exemption

13. 2007 Federal Budget • Proposed to increase amount to $750,000 from $500,000 • Apply to small business corporation shares & farm or fishing property • Occurring on or after March 19, 2007 At time of printing this proposal had not yet passed into law.

14. Reducing tax deductions at source

15. Reduce tax deducted if you have: • Non-payroll RRSP contributions • Child care expenses • Interest expenses on investment loans • Alimony • Maintenance or support payments • Charitable donations or rental losses

16. Notify payroll by submitting one of these documents • A revised TD1 form found on the CRA website or, • The Child Amount Notice www.cra-arc.gc.ca

17. Quebec residents • Application for a Reduction in Source Deductions of Income Tax • www.revenu.gouv.qc.ca

18. Important notes • The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation. • Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including: segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts. • Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.