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It’s tax time
2-11-2014
Here’s some information you should know about your taxes, including ways to save money at tax time.
For individuals
1. Plan ahead – Register for My Account and sign up for direct deposit, so you’ll be ready when you file your income tax and benefit return. You can use My Account to view your tax slip information, your RRSP deduction limit, your TFSA contributions, and more. Also, be sure to file on time to avoid late-filing penalties and fees and to make sure your benefit and credit payments are not interrupted.
2. Tax-free savings account (TFSA) – Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not taxable---either while held in the account or when withdrawn.
3. Registered retirement savings plan (RRSP) – You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan. The RRSP contribution deadline for the 2013 tax year has been extended to Monday, March 3, 2014, as March 1 falls on a Saturday.
4. Charitable donations – Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donee may be eligible for a charitable tax credit. Also, take advantage of the new first-time donor’s super credit on gifts of money to a maximum of $1,000 made after March 20, 2013, if you are considered a first-time donor.
5. Families – There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes---save those receipts! If you care for dependants with a physical or mental impairment, you may be able to claim up to an additional amount of $2,040 when calculating certain non-refundable tax credits related to the family caregiver amount.
6. Students – Were you a student during 2013? You may be able to claim tuition, textbook, and education amounts, as well as the interest you paid on your student loan.
7. Public transit amount – If you use public transit, you may be able to save by claiming the cost of your transit passes.
8. Seniors – If you receive a pension, you may be able to split up to 50% of your eligible pension income with your spouse or common-law partner to reduce the taxes that you pay. You may also be eligible to claim the age amount, medical expenses, and the disability tax credit.
9. Home buyers – You may be able to save up to $750 if you are a first-time home buyer in 2013.
Fast facts about filing your income tax return online
• Filing your return online lets you get your refund faster and avoids interruptions to your Canada child tax benefit or GST/HST credit payments.
• Filing online is easy. Certified software packages and web applications (some of which are free to use) guide you through the process, making sure you don’t miss out on credits and benefits you may be eligible for.
• Filing online is secure. The CRA uses the same high level of online security Canadian financial institutions use.
Footnotes: Footnotes: This column is presented as a general source of information only and is not intended as a solicitation for business. It is always recommended that you consult a qualified tax professional before embarking on any of the suggestions outlined above. Mohammed Yasin, CGA, is the principal of M. Yasin & Co. Inc., Certified General Accountants and has offices in Vancouver & Surrey,B.C. He is also A Member of Muslim Business Council of B.C. For more information on this topic or any other taxation matter
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