With the April 30 deadline for filing your personal income taxes approaching, we have reached the busy peak of tax season. The deadline for filing if you are self-employed is June 15.
General Information
If you’ve changed your name or marital status or moved since you filed last year’s return, your first step is to ensure your info is correct with the Canada Revenue Agency(CRA). Many of these necessary updates can be made instantly online for CRA My Account holders. Other changes, such as a name change of both your first and last names, require contact CRA directly.
- Social Insurance Numbers for you, your spouse, and any dependants (if applicable).
- Dates of birth for family members.
- Net income amounts for your spouse and any dependants for whom you’re claiming credits such as the Canada Caregiver Amount.
- If you plan to accept a tuition transfer, you’ll also need a copy of the student’s return to complete yours.
- The total amount of instalment payments made to CRA.
If you have capital cost allowance balances, or any unused losses or credits you plan to apply, it’s a good idea to have a copy last year’s tax return and your Notice of Assessment nearby.
It is also a good idea to log into your CRA Account and review your file.
You can login or register at: MY ACCOUNT FOR INDIVIDUALS.
TAKE ADVANTAGE OF ALL YOUR TAX CREDITS:
There are many opportunities to reduce the amount you pay to CRA, including many tax credits.
Below is a list to ensure you take full advantage of all these tax credits:
- The Chartered Professional Accountants of Canada provided a list of commonly missed credits to lower personal taxes.
- Do no forget to file a tax return. If you did not file a return, you potentially could miss out on tax benefits such as GST Credits, Canada Child Benefits Credit or Provincial Tax Credits. Also, you can still accumulate RRSP Room for the future when you have earned income.
- If you are married or have children, ensure you take advantage of transfers of income or credits. There are many amounts that can be transferred between tax returns. Seniors can transfer up to 50% of their eligible pension income to a lower income spouse. If you have children in post secondary school, they may be able to transfer some of their tuition credit to you, rather than carry forward unused credits.
- If you missed a credit or deduction in a prior year, you can still claim it: If you find receipts or other information for prior years when doing this year’s return, ask CRA to adjust your prior year’s return. There are exceptions, but you generally cannot just claim the amount this year.
2. The TurboTax tax software people offered this list of tax credits you may have overlooked.
- Medical expenses: Whether it’s a cleaning at the dentist or prescription refills, you may be eligible for a credit. You can also claim expenses for immediate family or other dependents. Also, if you’ve travelled more than 40 kilometres one way to seek medical care, you may be able to claim the travel expense as well.
- Union/professional dues and licensing-exam fees: If you’ve paid any other amounts to a union or professional organization on top of those deducted directly from your paycheck, keep the receipts for tax time. If you’re required to pass a certification or licensing exam for your profession, that cost may qualify as a tuition expense as well.
- Moving expenses: If you move to a location at least 40 km closer to your new place of employment, you can claim related moving costs. Overlooked expenses include vehicle expenses, accommodations and meals, fees for changing your address on documents or IDs and utility hookups.
- Student loans/interest: Interest paid on a student loan is a commonly overlooked credit. This non-refundable credit applies to interest paid on eligible loans. Student loan interest can be carried forward for up to five years.
- Employment expenses: If you have expenses related to your job, you may qualify for a deduction on expenses such as home office costs and trades person’s tools. You’ll need a signed form T2200, which is completed by your employer and outlines exactly what types of expenses you can claim, as well as any reimbursements you’ve received.