Apr
08

Attention parents! Don’t forget to claim these on your tax returns. . .

Home renovations – Now is the time to collect your Home Renovation Tax Credit for the home renovations you did before February 1, 2010. Child Amount – parents can claim $2,089 for each child below age of 18 in 2009. Children’s fitness tax credit – parents can generally claim up to $500 per year for eligible fitness expenses paid for each child.  Tuition, education & textbook amounts Child Care Expenses Canada Employment Amount – claim any employment-related expenses such as computers and supplies.
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Apr
07

Tax Saving Tips for Seniors

Aside from Pension Income Splitting, seniors can consider these tax saving techniques when filing for their tax returns: Remember to claim all non-refundable tax credits including your basic personal amount Claim credits for eligible medical expenses paid that ended in 2009 not claimed in 2008 File CRA form T1213, Request to Reduce Old Age Security Recovery Tax at Source, if your OAS has been clawed back due to too much income made from one-time income-generating event.
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Apr
06

Pension Income Splitting

Pension Income Splitting is one of the ways seniors could save significant amounts of tax when filing for their tax returns.  Married or common-law couples should consider using pension income splitting by completing CRA form T1032, Joint Election to Split Pension Income. The following are the primary benefits of Pension income splitting: Saves tax by moving up to half of a spouse’s pension income to the spouse with the lower tax bracket Returns of some of the Old Age Security (OAS) benefits that have been clawed back if net income was over $66,335 in 2009
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Mar
19

A review of the T1 jacket part 2

Let’s get back into reviewing the important sections of the T1 Jacket.The 3rd page of the T1 Jacket is where all your tax deductions are claimed.  After deducting all your Tax Deductions from your income, we are left with your “Taxable income” or the amount that will be taxed. The 4th and last page of the T1 Jacket is where the final tax balance is calculated.  Line 420-428 is where the federal tax payable, the provincial tax payable, CPP payable on self employment and any social benefits repayment is calculated.  The sum of these is on Line 435 and is called “Total Payable.”   Lines...
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