Here are some essential tax tips that will help you whether you are a landed immigrant/permanent resident in Canada, Parents with Students, Single Parent, or Newly separated. It is important that you organize your personal affairs with the goal of minimizing and deferring income tax liabilities to maximize your income tax return. Here are some tax tips to help you:
Basic Strategy To Minimize Taxes
• File as a family and strategically transfer deductions between spouses where possible
• Include eligible employment deductions
• Minimize tax by maximizing your RRSP contribution
• Claim eligible deductions for tuition, membership dues such as unions and professions
• Claim non-refundable tax credits such as the Family Caregiver amount or medical expenses
• Include eligible employment deductions
• Minimize tax by maximizing your RRSP contribution
• Claim eligible deductions for tuition, membership dues such as unions and professions
• Claim non-refundable tax credits such as the Family Caregiver amount or medical expenses
Tax Planning Strategy
• Utilize a deferral strategy to push having to pay tax now into future years
• Tax Sharing involves equalization of tax rates between spouses and family members
• Exploit options for Income-splitting to minimize tax
• Tax Minimization by recognizing all eligible deductions
• Tax Sharing involves equalization of tax rates between spouses and family members
• Exploit options for Income-splitting to minimize tax
• Tax Minimization by recognizing all eligible deductions
Investment Income Strategies
• Review the different types of investment income (interest, dividends, capital gain) to determine the combination that produces least tax and maximum retention
• Claim carrying charges and interest paid to earn income from investments
• Claim the principal residence deduction on the sale of a home
• Claim carrying charges and interest paid to earn income from investments
• Claim the principal residence deduction on the sale of a home
RRSP & Retirement Strategies
• Maximize your RRSP contribution
• Take advantage of the spousal RRSP deduction
• You can make tax-free Rollovers to RRSPs
• Take advantage of TFSA opportunities
• Take advantage of the spousal RRSP deduction
• You can make tax-free Rollovers to RRSPs
• Take advantage of TFSA opportunities
Employment Income and Expenses Tax Tips
• You may deduct employment expenses to earn commission if certain conditions are met
• You may deduct Moving Expenses if your home is at least 40 km closer to your place of work or school
• You may deduct Moving Expenses if your home is at least 40 km closer to your place of work or school
Child and Family Benefits Tax Tips
• You may be entitled to a tax-free monthly payment that helps eligible families with the cost of raising children under the age of 18
• The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay. To receive this credit, you must file an income tax and benefit return every year, even if you did not receive income in the year. If you have a spouse or common-law partner, only one of you can receive the credit
• If you have children under the age of 18, you may be entitled to this taxable benefit, which supports child care choices for families. The CRA uses information from your income tax and benefit return to calculate how much your CCB payments will be. Benefits are paid over a 12-month period from July of one year to June of the next year.
• The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay. To receive this credit, you must file an income tax and benefit return every year, even if you did not receive income in the year. If you have a spouse or common-law partner, only one of you can receive the credit
• If you have children under the age of 18, you may be entitled to this taxable benefit, which supports child care choices for families. The CRA uses information from your income tax and benefit return to calculate how much your CCB payments will be. Benefits are paid over a 12-month period from July of one year to June of the next year.
Savings Plans Tax Tips
• For the 2017 tax year, the annual TFSA contribution limit is $5,500. All Canadian residents, aged 18 or older, can contribute to a TFSA
• If you saved for your retirement by contributing to an RRSP, you may be able to deduct the amount of your contributions to reduce your income
• You can start saving for your child’s future now. An RESP is a contract between you (the subscriber) and another individual or organization (the promoter) that allows you to make contributions toward your child’s future education. Programs such as the Canada education savings grant (CESG) and the Canada learning bond (CLB) are other great incentives to create an RESP for your child
• If you saved for your retirement by contributing to an RRSP, you may be able to deduct the amount of your contributions to reduce your income
• You can start saving for your child’s future now. An RESP is a contract between you (the subscriber) and another individual or organization (the promoter) that allows you to make contributions toward your child’s future education. Programs such as the Canada education savings grant (CESG) and the Canada learning bond (CLB) are other great incentives to create an RESP for your child
Other Amounts and Programs
• Did you, your spouse or common-law partner or your children use public transit? You may be able to claim the cost of certain public transit passes or electronic payment cards for this 15% non-refundable tax credit
• Did you buy a home? You may be able to claim a non-refundable tax credit for the purchase of a qualifying home
• You may be able to claim a non-refundable tax credit based on the medical expenses paid for you, your spouse or common-law partner, and your or your spouse’s or common-law partner’s children born in 1999 or later for any 12-month period, ending in 2017
• You can claim the tuition fees paid to attend your post-secondary educational institution for the tax year in question. You may be able to transfer the unused amount to a parent, grandparent, or to the parent or grandparent of your spouse or common-law partner. Form T2202A issued by the institution allows you to claim the tax credit
• You may be able to claim an amount for the interest paid on your student loan for post-secondary education after your education is completed
• Did you buy a home? You may be able to claim a non-refundable tax credit for the purchase of a qualifying home
• You may be able to claim a non-refundable tax credit based on the medical expenses paid for you, your spouse or common-law partner, and your or your spouse’s or common-law partner’s children born in 1999 or later for any 12-month period, ending in 2017
• You can claim the tuition fees paid to attend your post-secondary educational institution for the tax year in question. You may be able to transfer the unused amount to a parent, grandparent, or to the parent or grandparent of your spouse or common-law partner. Form T2202A issued by the institution allows you to claim the tax credit
• You may be able to claim an amount for the interest paid on your student loan for post-secondary education after your education is completed
