Tax Season Tips

Year-end financial info to get ready

Tax filing deadline: April 30 or June 15 for self employed taxpayers

• Late filing: penalty of 5% on balance owed plus 1% per month, up to 12 months

• Repeated late filing within 3 years: penalty of 10% on balance owed plus 2% per months up to 20 months

• Interest will be charged too

A list of some of the basic forms and information to collect as you get ready for tax time:

1. Income and investment receipts

· Your T4 slips;

· Other types of income-related slips and receipts, such as T4A, T4E and so on;

· Pension and RRSP income slips, such as T4RIF and T4RSP;

· Old age and pension slips, such as T4A (OAS) and Canada Pension T4A(P);

· Investment income slips, such as T3, T5, T5013, and your calculations of gains and losses in investing.

2. Other assets and income

· Rental and business income and expenses;

· Details of foreign assets you own.

3. Eligible deductions

· Your RRSP contribution slips;

· Charitable donation receipts;

· Federal and provincial political donation receipts;

· Union dues, or professional association annual dues;

· Interest expenses and carrying charges on investing;

· Education and tuition expenses;

· Childcare expenses.

4. Other deductions from your income

· Automobile expenses;

· Travel, meal and related business expenses;

· Rental expenses incurred in earning income.

5. Home office expenses

· Worked more than 50% of the time from home for a period of at least 1 month;
· Flat rate method: $ 2 per day, max 200 days = $400, No supporting documents needed;

· Detailed method: Form T2200s must be completed by Employer;

· Shared all direct home expenses proportional to area of use (designated area);

· For use of common area, proportional to area of use and hours of use.

6. Canada Training Credit

· Age 26 - 65;

· Annual income $10,000 - $150,000;

· $250 (refundable credit) per year;

· Up to 20 years (max $5000);

· Enroll for a post-secondary or vocational course;

· 50% of tuition fees or the accumulated credit in the fund will be refunded;

· Continue to claim tuition credit.

7. Caregiver Credit

· For infirm dependent over age 18;

· Depends on you because of impairment in physical or mental function;

· Parent, grandparent, child, brother, sister, uncle, aunt, niece, or nephew;

· Max $7,276 if income under $17,085;

· Credit reduced if income $17,086 - $24,361.

8. Disability Credit

· Obtain T2201 (Disability Tax Credit Certificate) from qualified practitioners;

· Amount: $8,576;

· Transferable to person who support the dependent.

9. Medical Expenses Credit

· Part of nursing home expenses = medical expenses;

· Amount will be reduced by 3% of income (max $2,397);

· If total medical expenses over $10,000, no disability credit claim;

· Transferable to person who support the dependent.

10. Child care expense

· Age 6 and under : $8,000; 

· Aged 6-16 : $5,000;

· Expenses can be paid to family members over 18;

· Deduction must be claimed by parent with lower income except the other person attended school OR not capable of caring for children due to impairment in physical or mental function OR in prison.

11. Donations

· First $200, 20% tax refund;

· Over $200, 40% or more tax refund;

· Claim the donation together with your spouse’s receipts;

· Donate shares/mutual funds to charity organization direct: Upon filing T1170, no tax on capital gain.

12. Other Credits

· Digital News Subscription Credit: max. $500;

· School Supply Tax Credit: maximum $1,000;

· Home Accessibility Expenses: maximum $10,000 for renovation for senior (65) or disabled person to gain access to house or reduce the risk of harm within the house;

· Home Buyer’s Amount: $5,000 for new home buyer.