It’s “Tax Time” again. Filing your taxes is the only way to ensure you receive all Government credits that you are entitled to. Please remember that it is important to file a tax return even if you, or someone you know, has little or no income. You must file a return to apply and/or qualify for certain benefits.
Here are the major changes for the 2014 Tax Year:
Children's Fitness Amount - increased to $1,000.00/per child under the age of 16
(your savings will be a maximum of $150.00)
Family Tax Cut– this is a non-refundable federal tax credit of up to $2,000. It is available to eligible couples with children under the age of 18. Up to $50,000 of an individual's taxable income can be transferred to the individual's eligible spouse or common-law partner. This will take advantage of a spouse's lower income tax bracket.
Universal Child Care Benefit (UCCB) - this benefit is being increased for children under the age of six. Effective January 1, 2015, parents will be eligible for a benefit of $160 per month for each eligible child under the age of 6 - up from $100 per month. Under proposed changes to expand the UCCB, parents may also receive a benefit of $60 per month for eligible children ages 6 through 17. Payments of the additional amount and expanded amount will start in July of 2015.
GST/HST credit - You no longer have to apply for the goods and services tax/harmonized sales tax (GST/HST) credit. When you file your return, the Canada Revenue Agency (CRA) will determine your eligibility and will advise those who are eligible to receive the credit. If you have a spouse or common-law partner, only one of you can receive the credit.
Online mail – Starting this year you can register for on line mail. In doing so, you'll have instant access to your tax records anytime, anywhere. Choose to receive an email notification that your notice of assessment or reassessment is available online. You can provide the CRA with an email address on your T1 return or register directly online starting February 2015 at www.cra.gc.ca/myaccount.
DIRECT DEPOSIT - the Government of Canada is switching from cheques to direct deposit (by April 2016) for all government payments. If you are currently receiving benefit payments via cheque, you will need to enrol for direct deposit. With direct deposit, the Government of Canada deposits payments automatically into your account. It's an easy way to receive your payments without any postal delay. Again, I can easily assist you in setting this up.
Other common tax deductions and/or credits that you may be able to claim:
Children's Arts Amount - (up to $500.00). Your savings will be a maximum of $75.00
Child Care Expenses - in addition to day care expenses, you may also be able claim day camps/summer camps
Caregiver Amount - did you care for a dependent who was physically or mentally impaired?
Disability Tax Credit for self – if you have a severe and prolonged impairment in physical or mental functions, you may qualify for this non-refundable credit.
Disability Tax Credit (dependent) – if you have a dependent who qualifies for the Disability Tax Credit (see above), you may be able to claim all or part of this credit.
Medical expenses - total for the family
Moving Expenses - if you moved 40 kilometres closer to your place of work you may be able to deduct a number of expenses related to your move
Carrying Charges - the most commonly missed deduction is for your safety deposit box. Also consider fees paid to manage your investments and or interest paid on investments ( to earn income)
Charitable Donations - again one amount per family to maximize your tax savings
Transit expenses - monthly and/or weekly passes (at least 5 consecutive days)
First Time Home Buyers Tax Credit
- Tuition Fees