As we approach some important income tax deadlines* I wanted to share something our friend, David Gyurits from Investia Financial Services, shared with us on over looked tax credits and deductions. If you have questions about filing or what options you have feel free to contact David Gyurits.
*March 2nd is the last to contribute to your RSP for 2014 and April 30th which is the deadline to file your taxes
“Quite often things get missed because this is a rather large umbrella and people don’t know what they’re allowed to claim,” Battista says.
Some of the often-missed items that can be claimed under this umbrella, Battista says, are travel medical insurance, extended health-care premiums, and certain alternative health-care services, such as traditional Chinese medicine if you live in B.C., where the profession is regulated. (Allowable medical expenses vary from province to province.)
Kids’ creative, outdoors, and development programs
It’s not just painting classes or piano lessons that are eligible for the 15 per cent nonrefundable Children’s Arts Tax Credit on an amount up to $500 per child but also programs such as Brownies and Girl Guides.
Other eligible programs, according to the Canada Revenue Agency, include an activity that “contributes to the development of creative skills or expertise in artistic or cultural activities; provides a substantial focus on wilderness and the natural environment; helps children develop and use particular intellectual skills; includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or provides enrichment or tutoring in academic subjects”.
Kids’ physical activities
Take note, parents: the 15 per cent nonrefundable Children’s Fitness Tax credit has gone up.
“The children’s fitness amount used to be $500 but now people can claim a maximum of $1,000 per child for fees for membership or registration in a physical activity program,” says Jamie Golombek, managing director of tax and estate planning with CIBC Private Wealth Management . Eligible activities include sports like hockey, soccer, and gymnastics as well as less obvious ones such as horseback riding, sailing, and bowling.
Public transit passes
The Public Transit amount allows you to claim the cost of passes for allowed unlimited travel within Canada on local buses, streetcars, subways, commuter trains, and local ferries.
“If you pay for a monthly transit pass for your child, you can claim that on your taxes too,” Battista says.
“A lot of people don’t realize they might qualify,” Battista says. “There is this notion that you have to be in a wheelchair. It’s important to look at all the different qualifying factors.”
According to Disability Tax Service, which charges 20 per cent of a refund received for its services, the list of potentially eligible conditions is long, ranging from anxiety and ADHD to irritable bowel syndrome and personality disorders.
Family Tax Cut
“This one may get missed because it’s brand new,” says Golombek. “It applies if you have a spouse or [common law] partner and kids under 18, you’re able to notionally transfer up to $50,000 of taxable income from the higher- to the lower-income spouse.”
The maximum benefit for the non-refundable credit is $2,000.
Student loan interest
“If you’re repaying student loans, the interest is eligible for a tax credit, but only on federal and provincial student loans, not loans from a financial institution,” Golombek says. “If you have a student line of credit at your bank, you’re out of luck.”
Certain home purchases
With the Home Buyers amount, you can claim up to $5,000 if you or your spouse or common-law partner buy a qualifying home assuming you or your spouse or partner haven’t owned a home in the preceding four years.
Kids’ summer camps
“The cost of summer camps qualifies as child-care costs,” Golombek says. These include day camps and day sport schools as well as overnight sports schools or camps where lodging is involved