Are you looking for more smart tax tips? As promised, we’re providing you with additional tax tips every Canadian should know.
One tax break overlooked by many Canadians is medical expenses. Most people assume that their medical expenses won’t add up enough to result in a large tax break, but upon closer inspection this isn’t always true. Your receipts must total $1,844 or three percent of your net income (whichever is the lesser total). These receipts can also include any healthcare premiums you pay at work.
Are you claiming all of your childcare expenses on your taxes? The claim must be two-thirds of your earned income or the total of individual maximums for each child ($7,000 for each child under the age of 7 or $4,000 for children ages 7 to 16). Even if you are just paying a friend or neighbour to watch your children, ask for a receipt so you can claim it towards childcare expenses. If your household income is less than $35,595, you may be eligible for the Child Tax Benefit. Do your children play sports? The Children’s Fitness Tax Credit can be used towards sports program fees.
If you file taxes separately from your spouse, combine your charity donations onto one tax return. You’ll receive a 15.5% tax credit for the first $200 in donations and 29% for anything over that. You will also save money on taxes by having the lower-income spouse act as the investor of the family. The return on investments will be taxed at a lower rate this way.
Check out full article, “20 Smart Tax Tips for Canadians”
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