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Tax Tips

 

Calculate payroll deductions and payroll remittances.

 

Canada Pension Plan – Effective January 1, 2012, employers may have to deduct CPP contributions from the pensionable earnings you pay an employee who is 60 to 70 years of age, even if the employee is receiving a CPP or QPP retirement pension.

 

Child care expenses - If you require childcare to work or go to school, you can claim the amount paid to a qualifying childcare provider to look after a child, if the child resides with you during the tax year and is under the age of 16 or if claimed as a dependant on your tax return there is no age limit.

 

Children's arts amount – Parents can claim up to $500 for each child under the age of 16 (under the age of 18 if the child is disabled) in an eligible arts program..

 

Disability tax credit – A non-refundable tax credit for a person with a serious disability that effects their day-to-day activities such as vision; hearing; walking; elimination; feeding; dressing; mental functions; life-sustaining therapy may be eligible to receive. To apply for this tax credit your doctor will need to fill out a disability tax certificate.

 

Donations and gifts – If you, your spouse or common-law partner made a donation (gift) to a registered charity or another qualified done, you can claim eligible amounts of gifts to a limit of 75% of your net income. Gifts of certified cultural property or ecologically sensitive land may be eligible for additional tax credits. If you do not use all the credits in the current year, you are able to carry them forward to use within the next 5 years. A valid receipt should have the charity’s name, registration number, date, amount donated, donors name and be signed by the organization. You should save your receipts in case Canada Revenue Agency ask for them.


Employed tradespersons – If you are a tradesperson and have purchased an eligible tool to earn employment income you could qualify for up to a $500 tax deduction.


First time home buyers' amount –If you purchased a qualifying home and if you or your spouse has not owned a home in the year of purchase or 4 years prior, you are eligible for the first time home buyers tax credit.

 

Fitness Tax Credit – A taxpayer can claim up to $500 to the Children’s Fitness Tax Credit per child under the age of 16 (under the age of 18 if the child is disabled).

 

GST/HST credit –non-refundable quarterly payment (or annually if your benefits are substantially reduced) based on your prior years income tax return to help families with low or modest income offset all or part of the GST/HST they pay. To qualify for this credit you have to be over the age of 19 and file your personal income tax even if your total income is Nil. 

 

Medical Expenses – Eligible medical expenses that you, your spouse, dependant or child under 18 have paid in the taxation year or in any period of 12 months ending in the taxation year can apply for the medical expense tax credit.   You should keep the supporting documents in case of an audit by Canada Revenue Agency.

 

Moving Expenses – Moving expenses can be claimed if you have moved at least 40 kilometres to establish a new home to be employed or carry on a business at a new work location or if you move to study courses as a student in full-time attendance at a university, college or other educational institution that offers courses at a post-secondary school level.

 

New Brunswick child tax benefit – a non-refundable amount paid monthly by the New Brunswick Government to qualifying families with children under the age 18. This benefit is based on the parents income tax return and is to help pay for the needs of their children.

 

New Brunswick School Supplement – Starting in 2012, based on your 2011 personal income tax return, the New Brunswick provincial government will assist low-income families with the cost of back-to-school supplies for the school –aged children. This supplement will be given to families with a net income of $20,000 or less. If you qualify for this supplement you will be eligible for $100 for each child that you have full custody for or $50 for part time custody.


Pension income splitting- The pensioner can reallocate up to 50% of his income to the pension transferee (your spouse or common-law partner). By doing this it reduces the amount the pensioner will be taxed on.


Public transit amount –You can claim monthly or yearly passes used in Canada for local buses; streetcars; subways; commuter trains or buses or local ferries. A non-refundable tax credit used to reduce the amount of federal taxes payable.


RRSP – An RRSP is a retirement savings plan that you establish, and to which you or your spouse or common-law partner contribute. When you put money into your RRSP, you can deduct that amount from your taxable income for that year. You don't pay tax on the money you put into an RRSP account, or any interest you earn on it, until you take the money out.


Tuition, education, and textbook amounts- Are non-refundable tax credits used to reduce the amount owing on your income tax return. If you do not have any taxes owning you can carry forward all of part of your credit or a student can transfer up to $5,000 of their credit to a spouse, common-law partner, parent or grandparent.


Volunteer firefighters' amount- If you are a volunteer firefighter you may be eligible for up to a $450 tax credit providing you have federal taxes owing. To be eligible for this credit you have to have completed 200 eligible hours of volunteer fire fighting services in the year that you are claiming the credit.