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5 Tax Tips for Canadians

It’s that time of year again: tax time. Tax season can be stressful as we watch our hard earned dollars be ‘given away’ to the government. If you’re tired of watching your money slip through your fingers and want to save on taxes, here are 5 great tax tips to help you do just that:

 

1. Be Generous – Not only is this a great life philosophy but it also comes in handy around tax time. Although it varies from province to province, the tax credit you receiving can often increase as you give more. (Just remember to get a receipt when you do give!)

2. File on Time – Filing your taxes on time can save you cash. Being late will mean being dinged.  You can be charged five percent of your owing balance plus one percent for each month that your balance is late. Avoid that! Note: Personal tax must be filed by April 30 – 2012, Small Businesses by June 30 – 2012

3. RRSPs – Contributions to your RRSPs can mean tax deferral. Take advantage! During the year consider having your RRSP contributions come out of your bank account automatically. Having it done automatically will not only shorten your to-do list but also help to ensure that you invest as much as you plan to.

4. Be Accurate – As much fun as getting a fat cheque from the governenment can be, essentially what you’ve done is given them an interest free loan on your money! That money is money that you could and should be investing! Make your money make money and don’t be over on your taxes (or under). Try to be as accurate as possible.

5. Claim Medical Expenses – You may claim medical expenses for yourself, your dependents, and your spouse. To claim the expenses must exceed 3% of your net income. So, keep those medical receipts and count them up!

 

For more information on how to save money on your taxes visit the Canada Revenue Agency Page

 

How are you saving money this tax season?

Expert Canadian Tax Tips for Parents

Canadian Tax Tips

Check out these Canadian tax tips from Certified General Accountant, Marilyn Benninger.

Whether you like it or not, tax season is upon us. Marilyn Benninger, Certified General Accountant (CGA) and tax expert representing Canadian tax software giant, UFile, provides busy parents with tips for filing taxes:

  • Does your child love hockey, soccer, baseball AND swimming? Parents can claim up to $500 for children activities aimed at keeping fit.
  • Tax filing is a “family affair”. If you are married and/or have dependants, prepare the returns for yourself, your spouse and dependants at the same time. Only then can you (or your software) accurately prepare your tax returns and find the deductions, credits and transfers that can get you a better tax refund.
  • Two plus two makes five? Little wonder that the most frequent mistakes the Canada Revenue Agency finds on tax returns prepared by hand are due to mathematical error. To avoid such errors, use quality tax software.
  • Are you taking care of a parent aged over 65? If so, you may be able to claim the “caregiver amount” on your tax return for each parent living with you who is infirm. To do so, your parent need not be “Disabled” under the Tax Act but they must be dependent on you.
  • Working from home can mean substantial tax savings. When you have a home office that is clearly set apart from the rest your home and you have no office space dedicated to you by your employer, you may claim home office expenses such as telephone, equipment and electricity and heat according to the space dedicated to your office.

Canadian Tax Tips

Do you have any tips for filing taxes that aren’t mentioned above? We’d love to hear them! We’d also be interested to learn how you do your taxes: do you file them on your own, use Canadian tax software, or hire a pro to take care of them for you?

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