Some helpful tips for tax season. There are an infinite number of questions we all ask when it comes time to prepare our returns. Here are some answers to help you. And do not forget there are other ways than the calculator, paper and pencil to make your statements. It is time to stop pulling your dryer and take advantage of software solutions for your statements, whether online or your computer . If you have comments and questions, please send them to me. Good preparation!
Should I invest my money in a savings account tax-free (TFSA) or in my RRSP?
You can protect yourself and invest in both. However, if you want to contribute to one account, be aware that with an RRSP you can deduct your contributions from your taxes now, while with the TFSA, you can withdraw your money without paying taxes on the amount withdrawn, including interest that you have accumulated. If you think your income will be subject to a lower tax bracket when you begin to withdraw this money later, choose the RRSP because you pay less taxes now and the remaining amount will be taxed less. If you think your income will be higher when you begin to withdraw money, then the TFSA is a better choice, because as you earn more money, you avoid paying a higher rate later. For more information, visit impotrapide.ca / support http://www.celi.gc.ca/ or http://www.cra-arc.gc.ca/ .
I move to Western Province for my work. From a tax perspective, what is the best time to move?
You are subject to provincial tax rate of the province where you reside on December 31 of a calendar year. If you move to a province where the tax rate is higher, it is better to move after Dec. 31 to qualify for a lower tax rate for another year and vice versa.
I have almost no income this year and I owe nothing to the government. Should I still file tax return?
Yes! You have to file tax returns even if you have no income and even if you always pay your taxes. Why? Because it determines your eligibility for certain government programs as the Canada Child Tax Benefit (CCTB), the credit for the GST / HST and any other new rebate program that could be announced during the year. Even if your income is not high, the returns allow you to report your income earned, increasing your contribution to an RRSP. Since your returns are likely to be very simple, why not produce them for free using the free version of our QuickTax online?
Medical costs have actually made a hole in our savings this year. Can I deduct any part in my tax return?
You must take certain things into consideration. To deduct your medical expenses, they must exceed 3% of your net income. To maximize your deduction, collect all the medical expenses of your family in one: yours, those those of your spouse and your dependents are under 18 years, and include them in a single statement. Do not forget travel expenses such as meals and expenses related to a vehicle if you must travel over 40 km for medical treatment not available in your area. If you're traveling over 80 miles from home, you can also claim accommodation costs.
It is generally more advantageous for the spouse who earns the lesser claim the deduction for medical expenses. However, if the spouse who earns less is enough tax credits or deductions to cancel its income, it is better to claim the deduction for medical expenses in the statements of the spouse whose income is higher. You can also transfer the amount to the following year, provided that the expenses were incurred in a period of 12 months ending in the taxation year in which you are claiming the deduction. The QuickTax assesses reports of a couple and recommends the man or woman to whom the deduction is more beneficial.
My elderly father can be considered a dependent?
Probably. Remember that the dependents are not necessarily your children. You may be able to deduct part or all of the amount for caregivers if you are a parent, grandparent or a dependent mentally or physically infirm aged over 18, who lives with you and who has Net income less than $ 18 081.
My daughter is studying at university and she has not earned a high income for its summer work. Can I deduct her tuition?
A summer work allows students to eat or have money pocket, nothing more. Students who have low incomes or no income can quickly reduce the tax liability to zero. They can either defer tuition to a future year or transfer to their spouse, parent, grandparent or even parents or grandparents from their spouse. Your daughter should, however, indicate that you transfer those deductions. Even if you paid her studies, she must first request the deduction. Any amount remaining after taxes reset your daughter can then be transferred to your statements. Your daughter should also take advantage of all deductions available to students. Have him try the Student version of QuickTax online, which maximizes deductions for tuition and other education-related expenses. Students whose income is less than $ 20 000 can use free software to prepare their statements.
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