Tax Tips straight from CRA

Canada Revenue Agency has offered the following top ten ways to help people prepare for their taxes and meet their financial obligations, take note of these strategies and credits:

1.       Plan ahead – Submitting your income tax and benefit return before the tax-filing deadline means you can avoid having to pay late-filing penalties.

2.       Families – Save those receipts! All the activities you have been paying for throughout the year (piano, karate, tutoring, hockey, and more) may save you money at tax time.

3.       Tax-free savings account – A tax-free savings account (TFSA) is a great way to save money since you don’t pay tax on any income you earn from investments in your TFSA.

4.       Registered retirement savings plan – Any income that you earn in an Registered retirement savings plan (RRSP) is exempt from tax, as long as the funds stay in the plan.  RRSPs help you save for your retirement and give you a break at tax time too.

5.       Public transit tax credit – If you or someone in your family is a regular user of public transit, then you may be able to claim a non-refundable tax credit based on the cost of eligible transit passes.

6.       Pension income splitting – If you receive income from a pension, you can split up to 50% of eligible pension income with your spouse or common-law partner to reduce the taxes that you pay.

7.       Students – Students can claim the tuition, education, and textbook amounts.  Have you graduated recently? You may be eligible to claim the interest that you paid on your student loans.

8.       Child care expenses – If you have children, you may be able to claim childcare expenses that you or your spouse or common-law partner paid so that either of you could work, do research or go to school.

9.       Home buyer’s tax credit – If you’re a first-time homebuyer you may be eligible to claim $5000 on the purchase of you new home, which can save you up to $750.

10.   Self-employed individuals – Hiring an apprentice can help with taxes since the salary paid to an employee registered in a prescribed trade, in the first two years of his or her apprenticeship contract, qualifies for a non-refundable tax credit for the employer.

If you need help doing you taxes give me a call, if I can’t help you; I know a great accountant!

Have a great weekend,

Tracey

Source:  Advisor.ca