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us help you minimize your payments through careful planning in the
future. Take the hassle and worry out of tax season. We share some
of the Tax Tips.
If the following expenses are incurred by
December 31, they will be eligible for tax deductions:
moving expenses,
child care expenses,
safety deposit box fees,
charitable donations,
political contributions,
medical expenses,
alimony,
public transit amount.
RRSP contributions
You have until February
29, to make tax deductible RRSP contributions for the previous tax
year. Beginning in 2007, the last day you can contribute to your
RRSP is December 31st of the year you turn 71.
Eligible Registered Retirement Savings Plan (RRSP) contribution
amounts are noted on the previous year's personal income tax return
assessment notices.
Consider contributing to a spousal RRSP to achieve income
splitting in the future.
Seniors — maximums below apply to the 2009 tax year.
A OAS recipient, whose net income exceeds $66,355, will
lose all, or part, of their old age security. Calculation of re-payment
is based on 15% of the excess over this amount, to a maximum of
the total amount of OAS received.
Senior citizens will begin to lose their income tax age
credit if net income exceeds $32,280. The age credit will be eliminated,
if net income exceeds $61,187.
See Pension Income Splitting - this was effective with
the 2007 tax year
Children
Every child under the age of six is eligible for the new $100-per
month Universal Child Care Benefit - no matter what your household
income. Register your child with Canada Revenue Agency, if you haven't
started receiving your monthly cheques. See the Canada Revenue site
for application details.
Children's Fitness Tax Credit
The Federal Government has announced the guidelines for the Children's
Fitness Tax Credit that starts in 2007.
Education Amount
You can claim this amount for each whole or part month
for the tax year in which you were enrolled in a qualifying educational
program.
Students, who are eligible to claim the Education Amount,
can now claim the Textbook Tax Credit for each month they are enrolled
in an eligible program. It is $65 a month for full-time students
and $20 for part-time.
Tradespersons Tool Credit
Those who bought eligible tools in excess of $1,000, can claim the
Tradespersons Tool Credit. The maximum claim is $500 and you will
need a Form T2200 certified by your employer. Electronic communication
devices and electronic data processing equipment are excluded.
Self-employed individuals
They will be allowed to deduct Health and dental premiums for the
year for Private Health Plan provided they meet certain criteria.
New for 2009!
The Home Renovation Tax Credit
The new Federal Budget announced in January 2009 is giving homeowners
a tax credit for fixing up their principal residences.
The credit is calculated as 15% of renovations in excess of $1,000.
If you spend $6,000 on renovations, you will get a credit of $750
($5,000 x 15%). The maximum credit is $1,350 on renovations of $10,000
or more.
The renovations must be of an enduring nature and be integral to
the dwelling. Examples provided by the government include:
Renovating a kitchen or bathroom.
New carpet or hardwood floors.
A new deck or fence.
A new furnace or water heater.
Painting the interior or exterior of your house.
Resurfacing your driveway -
Expenses include the cost of building materials, labour, equipment
rentals and the cost of getting permits.
Financing costs.
A residence will generally qualify if it is eligible to be your
principal residence or the principal residence of a family member
at any time between January 27, 2009 and February 1, 2010. If you
own a condominium, you can claim your share of expenses incurred
in respect of common areas as well as expenses in respect of your
own particular unit.
You can only claim for work done or supplies purchased before February
1, 2010. You cannot claim for agreements to do work or buy supplies
that were entered into before January 28, 2009. The credit must
be claimed on your 2009 tax return (even where the work is done
in January 2010).
Additional information is available on the Canada
Revenue Agency website.
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