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Taxes

Advice For Claiming The Disability Tax Credit

Many qualifying taxpayers miss claiming the Disability Tax Credit because they don’t think it applies to their situation. Here is some advice for Canadians who may qualify for the Disability Tax Credit:

  • Review your situation: The Disability Tax Credit has criteria you must meet in order for you to qualify. In particular, your disability must make it extremely difficult or time-consuming to carry out basic activities of daily living even if you are undergoing therapy and using appropriate devices and medications.

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March 30, 2012
Taxes

Is This Right? Top 8 Reasons Why Your Tax Refund Is Less Than You Think

    • New mom surprise: Service Canada usually withholds insufficient tax from EI benefits. If you are a repeat claimant and your net income is more than $55,250 you may also have to repay some of your benefits. This means that some new mothers find they owe tax even though they can claim the child amount for the newborn.
    • Newly retired: Recently retired seniors often find themselves in a pickle in the year they retire with a tax bill in the year they retire because no tax is withheld from their Old Age Security (OAS) or Canada Pension Plan (CPP) retirement benefits unless they specifically requested it.

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March 26, 2012
Taxes

Tax Tips For Families With Children

  • Claim the kids: Families will continue to benefit from a $2,131 Child Tax Credit for each child under the age of 18. This will result in a federal tax saving of $320 per child. And if one parent cannot use the entire amount to lower their tax payable, the unused amount can be transferred to a spouse or common-law partner.

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March 23, 2012
Taxes

Separated in 2011? Here Is How To Handle Your Taxes Alone

  • Marital status: For tax purposes, your marital status is determined on December 31 of the tax year. So if you are separated on December 31, 2011, you would put “separated” as your marital status. If you were in a common-law relationship, you are only considered separated if the period of separation lasts 90 days or more, so if you separated on December 1, you will not be considered separated on December 30 unless you remain separated on March 1.
  • Inform the CRA: Breaking the news to the Canada Revenue Agency may not be high on your list of priorities. However, since your GST/HST Credit and Child Tax Benefit is now based solely on your income, it will usually be to your advantage. Use Form RC65 Marital Status Change to advise them and they will recalculate your entitlement effective for the next payment date.

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March 16, 2012
Money Saving Tips, Taxes

New Credits To Use On Your 2011 Tax Return

Children’s Art Credit: Enrolling children younger than 16 in artistic, cultural, recreational or development programs means parents can
claim up to $500 in registration or membership fees with the new Children’s Art Credit. This includes activities like scouting, painting, pottery and tutoring. It means about $75 in tax savings. And you can still claim the Children’s Fitness Credit for programs involving physical activity.

Examination fees: If you pay fees to take an examination that is required to obtain a professional status or to practice a profession or
trade, you can now claim them as tuition if the fees are more than $100.

Students studying abroad: Instead of having to study for 13 consecutive weeks outside of Canada, you can now study for only three
straight weeks and qualify for a tuition credit as well as the education and textbook tax credits.

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March 9, 2012