The Canadian government often makes changes to the deductions that are available to us, hence it is well worth your time and effort to determine the deductions and tax credits that may affect you. The raise in your tax return can help you save more money, and you could use the additional money to help improve your credit score – like investing the money into a loan to reduce it significantly.
In order to assist you with finding ways to maximize your tax refund this year, we have put together a list of uncommonly known deductions and tax credits that you may be eligible to claim:
1. Family Deductions
Even though the Canadian government came up with the Universal child care benefit (UCCB) in 2006, there are still numerous Canadians that are unaware of this tax deduction. There have recently been some changes to the UCCB, and it now includes children aged 6-17. The amount you are able to claim per child has also changed, for children 6 and under it has increased to $160 per month, and for children 6-17 years old it has increased to $60 per month.
Another change to Family Deductions is the increase of the Child Care Expense, the maximum deduction per child has increased by $1000.
Another family deduction that many are unaware of is the Children’s Fitness tax credit, that lets you claim up to $1000 per child for fees paid for their physical activity program. In addition to claiming these fees for your own child, you can also claim fees paid for your spouse’s or common-law partner’s child.
2. Student Deductions
Many students realize that they cannot claim the interest paid on their student loan! Don’t worry if you weren’t aware of this until now, because you can still claim any interest you paid in 2015 or the previous 5 years. Either you can claim this on your personal tax claim, or someone related to you can claim it – like your parents/guardians.
3. Public Transit Deductions
If you take public transit, you can claim the cost of your transit passes from last year. In order to qualify for this deduction, your pass must have allowed you to unlimited travel on public transit for a minimum of 20 consecutive days in any 28-day period – for example of a monthly or annual bus pass.
4. Tax-Free Savings Account (TFSA)
A Tax-Free Savings Account can also co
me in handy to get a good tax return.
5. Moving Expense Deductions
If you had to move for a new job or to take courses as a full-time student, then you may be eligible to deduct your moving expenses from your tax claim! In order to qualify for this deduction, your move must have been at least 40 kilometres closer to your new job or school. If you meet these requirement, you’ll need the receipts from your move!
6. File On Time
You may think that this is presumed but it’s incredible how many people submit their tax returns late, incurring additional charges.
There is a late penalty on the balance owing, plus a percentage of your balance owing for each full month your return is late (maximum of 12 months).
7. File Your Taxes Online Without Charge
Canada Revenue Services lists several free systems to file you taxes online. An advantage of filing faster is that you will receive your refund faster.
Interested in Learning More About Taxes?
Canada Revenue Services has an online course for individuals who want to learn about Canada’s tax system and how to file a simple tax return. This is a quick course, and should only take you about 60-90 minutes.
Year after year, the Canadian government is coming out with new tax credits that can lower the tax you owe and allow you to receive a better tax refund. The goal of these programs is to help you recoup the costs of living and enable you to boost your refund.
It’s important to be aware of these government credits at the start of the year so you can keep any receipts required to claim expenses back when it’s time to file your taxes in the following year. By taking the initiative and educating yourself about your available credits, you can save yourself more money when filing your tax return and improve your tax refund.
As we enter take the time to consider all the ways you can save more money before you file. Maximizing your tax refund is one way that you can boost your disposable income and get something back from what you’ve already put in. You can then take those funds and use the money for other things – such as paying off our debts or even financing a new car.
Interested in a new car? Canada Auto Experts can help you build your credit with a vehicle. Complete our secure online auto loan application to get approved for a vehicle today. Alternatively, you can call us at 1-855-550-5565.