Oh boy, its here again. Tax season. This can be a difficult and stressful time for some people, but it doesn’t have to be. That is why we have good people like Daniel Foster looking out for you in the tax world. He has 4 great tips on how to save some extra money on your taxes this season.
Although no one enjoys paying taxes, it is every Canadian’s civic duty to do so. Federal tax rates range from 15 percent on the first $40,970 of income to 29 percent on amounts over $127,021. Provinces and territories also collect additional taxes. A number of steps will help you minimize your federal tax liability.
Declare Tax Credits
Public transit users are eligible for a tax credit of up to $100.
The Canada Revenue Agency provides a wide range of credits for taxpayers. One example is the Home Renovation Tax Credit (HRTC). If you purchase home improvement materials or hire someone to fix up your home, and you spent between $1,000 to $10,000, you qualify for the HRTC. The credit pays for 15 percent of the cost, up to $1,350. Another popular credit is the Child Disability Benefit (CDB), available to families with a child younger than 18 who has a severe physical or mental handicap. It covers up to $2,044 of care-related expenses. Credits are also available for caregivers and public transit users. New credits take effect every year, and some expire. Unlike expenses, tax credits subtract directly from the amount you owe–so if you owed $10,000 in taxes and declared $2,500 in credits, you’d only pay $7,500. Check the status of a tax credit with the Canada Revenue Agency (see Resources) or a tax professional before filing.
(more…)
prudentplan 