Tax Tips

/Tax Tips
Tax Tips2017-04-03T23:13:52+00:00

RRSP deadline March 1, If your income is in the higher tax bracket and you anticipate needing less income when retired, then contributing and deferring taxes to when you will be in a lower tax bracket is a good decision or contributing to a spousal RRSP plan if the spouse is likely to be in a lower tax bracket when retired makes good planning.


CHILD EDUCATION SAVINGS

RESP deadline December 31st – government adds 20% to your contribution to max of $500 per yr, so contribute up to $2000 and now you have $2500 saved towards your Childs education. Be sure to do this before child turns 15.


INVESTMENTS

If you have capital gains you may want to sell of stocks or property that will have losses to offset your gain.


MEDICAL TRAVEL

Keep your calendars for 2011 and write down all your medical appointments for the family for tax time. You will need to know Date, Address, Who for, Doctors/Clinic name and km driven. If more than 40km on way you can claim, if more than 80 km one way you may be able to claim meals, keep receipts for parking as well. Keep apt cards and any receipts for prescriptions and medical devices.


KEEP RECEIPTS

Start gathering receipts, keep in safe place for tax preparer, Child care receipts, prescriptions, medical treatment receipts, travel insurance, tuition T2202A forms, Bus pass receipts, RRSP withdrawals and contributions, T4s, T5s, T3s. Watch for Accurate Tax Tax Envelope mailout in January.


IMPORTANT INFO TO TELL

Remember to tell your tax preparer important news that will affect your taxes like; Did you marry or divorce, live common-law, have a child? Did you move to be closer to your work? Where you a caregiver for a family member who has severe disabilities and low income? Did you go to school, have a child who went to school? Did you buy a house for the first time, or the first time in 5 years?



Tax Tips: 2

1. Disability tax credit

Many taxpayers feel they do not qualify but it may be worth asking your doctor to review the criteria on the T2201 medical disability form. This form is submitted to the CRA and they will determine whether you qualify. If you are eligible you may also qualify for RDSP, Registered Disability Savings Plan, which receives government grants.


2. Claim your income:

Any child under 18 who works part time or full time during the summer months may be entitled to a refund of taxes paid if their income is below the basic personal amount. Even if no tax is deducted, reporting the income will increase the child’s RRSP contribution limit for future years and they may be eligible for the Tax Credits.


3. Get your benefits:

Those turning 19 before April 1, 2014 should be filing a 2013 tax return even if they had no income. This will allow them to collect the GST/HST credit for the quarter following their 19th birthday.


4. Caregiver amount & Family Caregiver:

You may be eligible to claim an extra non-refundable tax credit for family member(s )who depend on you, due to mental or physical and have low income. Talk to a professional to see if you may be eligible.

Get a SIN # for your Children and start saving for Education right away! Don’t miss out on RESP opportunity to get help with your child’s education.


5. Canada Learning Bond:

Designed to help lower income families the Government provides $500 in a CLB at birth for children whose families are entitled to the National Child Benefit Supplement. As long as the family is still entitled to the
supplement, they will receive an additional $100 CLB each year until the age of 15.


6. Save for future education:

Designed to help save for a child’s post-secondary education, parents can make up to $50,000 RESP lifetime contribution. There are also no longer any annual limits on RESP contribution. Canada Education Savings Grant (CESG) per year is $500.


Call us today to set up an appointment to review your situation and get the most from your government.

Susan Northey
705 656-1200

  1. Make any large purchases you are planning prior to year end to be able to claim capital cost allowance (depreciation). Purchase rather than lease will give you a better right off this close to the end of the year and allow for the HST refund in full.
  2. IF you have payroll be sure to review prior to the final remittance for the year, Jan 15, or Jan 10th for some, ensuring that all the correct amounts have been deducted and remitted to receiver general.
  3. Review your profit for year and plan your Salaries or dividends if you are incorporated, or see if you should be paying your spouse or child a reasonable wage for work performed for business.
  4. Get your log book up to date for personal/business use of vehicle, take the KM reading on vehicle Dec 31st.

Basically everyone can make $11,038 for 2013 without paying income tax, more if you are over 65, or disabled, or have dependants with no income etc. Here are the main combined tax brackets for regular income (not dividends or capital gains), so each time you go to another tax bracket you pay that tax rate only on each dollar within that tax bracket.

Marginal Rates 2013

Tax Brackets Other Income
%
Capital Gain
%
Dividends1
Eligible2
%
Ordinary3
%
$39,724 – $43,561 24.2 12.1 3.8 7.9
$43,562 – $69,958 31.2 15.6 13.4 16.6
$69,959 – $79,448 33.0 16.5 14.2 17.8
$79,449 – $82,420 35.4 17.7 17.5 20.8
$82,421 – $87,123 39.4 19.7 19.9 23.8
$87,124 –$135,054 43.4 21.7 25.4 28.8
$135,055 – $509,000 46.4 23.2 29.5 32.6
$509,001 and over 49.5 24.8 33.8 36.5

This link to a tax calculator will help you to determine tax on different types of income and the tax break levels click here .


Tax Tips: 2

1. Disability tax credit

Many taxpayers feel they do not qualify but it may be worth asking your doctor to review the criteria on the T2201 medical disability form. This form is submitted to the CRA and they will determine whether you qualify. If you are eligible you may also qualify for RDSP, Registered Disability Savings Plan, which receives government grants.


2. Claim your income:

Any child under 18 who works part time or full time during the summer months may be entitled to a refund of taxes paid if their income is below the basic personal amount. Even if no tax is deducted, reporting the income will increase the child’s RRSP contribution limit for future years and they may be eligible for the Tax Credits.


3. Get your benefits:

Those turning 19 before April 1, 2014 should be filing a 2013 tax return even if they had no income. This will allow them to collect the GST/HST credit for the quarter following their 19th birthday.


4. Caregiver amount & Family Caregiver:

You may be eligible to claim an extra non-refundable tax credit for family member(s )who depend on you, due to mental or physical and have low income. Talk to a professional to see if you may be eligible.

Get a SIN # for your Children and start saving for Education right away! Don’t miss out on RESP opportunity to get help with your child’s education.


5. Canada Learning Bond:

Designed to help lower income families the Government provides $500 in a CLB at birth for children whose families are entitled to the National Child Benefit Supplement. As long as the family is still entitled to the
supplement, they will receive an additional $100 CLB each year until the age of 15.


6. Save for future education:

Designed to help save for a child’s post-secondary education, parents can make up to $50,000 RESP lifetime contribution. There are also no longer any annual limits on RESP contribution. Canada Education Savings Grant (CESG) per year is $500.


Call us today to set up an appointment to review your situation and get the most from your government.

Susan Northey
705 656-1200

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This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.