Did you know that you may be able to claim your child care expenses your income tax return? To qualify, you must have incurred the expenses in order to work or attend school. When there are two parents, the parent with the lower net income usually has to make the claim.
If your child is under the age of seven and you qualify, you may be able to claim up to $7,000 a year. For each child over the age of seven but under the age of sixteen, you may be able to claim up to $4,000. There is no age limit for a disabled child and you may be able to claim up to $10,000.
What payments can you claim?
You can claim payments for child care expenses made to:
Caregivers providing child care services
Day nursery schools and daycare centres
Educational institutions, for the part of the fees that relate to child care services
Day camps and day sports schools where the primary goal of the camp is to care for children (an institution offering a sports study program is not a sports school)
Boarding schools, overnight sports schools, or camps where lodging is involved
You are even able to claim advertising expenses and placement agency fees paid to locate a child care provider.
Did you know that if you file your income tax return electronically, you may get your refund within eight business days? If you file electronically and use direct deposit, you will get your refund even faster!
Filing electronically is convenient and environmentally friendly. If you use EFILE we receive an immediate confirmation that your return has been accepted and you have no mailing costs. You don’t need to send any receipts unless the Canada Revenue Agency asks for them.
If you want the government to deposit your refund directly into your bank account, we will send a request for direct deposit to the Canada Revenue Agency.
For more information on electronic filing and direct deposit please get in contact with us.
As a student enrolled in an institution offering post secondary education, you may be able to claim your tuition and education amounts on your tax return.
You can claim an education amount up to $400 for each month you attended school and up to $65 per month for textbooks. If you have unused tuition and education tax credits, these credits can be carried forward to the next year. You can also choose to transfer up to $5000 of unused credits to a spouse or parent.
These amounts are for the Federal credits. The provincial and territorial amounts may vary. Other amounts are available for part-time students.
For more information on how filing your tax return will benefit you as a student, please refer to “Keeping the Taxman at Bay“, published by Allan Fefergrad, CGA.
If you have investments, you may be able to claim related carrying costs and investment expenses. Carrying costs include fees such as a safety deposit box rental or fees paid to an investment advisor. You can also claim interest expenses on the money that you borrow to for certain investments.
You can deduct interest and carrying charges incurred to earn income from securities, bonds and other investments, if they are earning investment income. The requirement of earning income generally means that the investments should be paying interest or dividends.
Are you a new resident of Canada? If yes, then you will find these tax tips very interesting.
If you are a newcomer to Canada, you can be authorized to receive payments such as the Canadian Child Tax Benefit (CCTB) or the goods and the services/harmonized sales tax (GST/HST) credit. To receive these credits, you must report your income from all the sources, including money earned worldwide and within Canada. Like all the Canadians, you have the right and the responsibility to file your income tax every year.
A Registered Retirement Savings Plan (RRSP) can help you save for retirement, an education or even buy your first home. You have until February 29, 2012 to contribute to your RRSP so that you can reap the benefit of a tax deduction on your 2011 tax year. To retrieve your RRSP deduction limit for 2011, please refer to your 2010 Notice of Assessment. You can also use the new online service offered to you by the CRA named “My Account”.
My Account lets you obtain the information on your RRSP contribution limits, contribution requirements for the Home Buyers Plan and contribution requirements for the Lifelong Learning Plan. You can also receive information on your Child Tax Benefits and your GST/HST payment information.
The income tax filing for your children can be very beneficial to them in the future. For the 2011 tax year, if your child has income of less than $10,527 there is no tax to pay. However, by producing an income tax return for your child, he/she will reap the benefit of creating RRSP contribution room which can be used in the future.
Also if your child is above the age of 18, they can be entitled to the GST/HST credit. The only way your child can profit from this is to produce an income tax return.
Whether you like it or not, tax season is fast approaching…
On a regular basis, we post Tax Tips and advice. We feel that it’s very important to keep all Canadians advised on their tax matters. Starting February 1, 2012 and continuing throughout the month of February, we will be posting one new tax tip daily!
Happy New Year! The Government is imposing various tax increases for all Quebecers in 2012. An increase in the QST, increase in the QPP contribution rate, increase in the health contribution fund, increase in gas tax, etc…
Now, more than ever it’s extremely important to seek professional advice and take advantage of all possible tax deductions available to you.
For more information on the various tax increases, please watch this short video.
March 3, 2014 - RRSP contribution deadline March 3, 2014 - Deadline for 2013 Home Buyer Plan repayments April 30, 2014 - Personal Tax Return deadline April 30, 2014 - Payment to the CRA for your 2013 balance owing including Self-Employed June 16, 2014 - Self-Employed Tax Return deadline