Did you know?
- Capital Gains
- Charitable Donations
- Disability & Infirmity
- Income Splitting
- Joint & Family Filing
- Medical Expenses
- Registered Retirement Savings Plan (RRSP)
- Tax Slips
- Transit Passes
Income Tax must be paid on any gain made when selling a Capital Property. Determining the Adjusted Cost Base of the property is the sole responsibility of the person purchasing the Capital Property.
Only contributions made to a charity registered in Canada can be used as a tax deduction.You must have a receipt with the charities registration number printed on it. There are special rules for contributions to charities outside of Canada.
Disability & Infirmity
If you or a family member have a severe and prolonged health issues you may be able to apply for the disability tax credit. In addition, there is a family caregiver amount which you may be qualified to claim for a spouse, child or other relative who lives with you in your residence.
It is possible to share CPP payments with your partner if you are both over the age of 60. This can put income into the hands of the lower income spouse and thus reduce taxes for the higher income partner.
If you are over the age of 65 you may also be able to split income such as Life Annuity payments from a pension plan, RIF payments and RRSP Annuity payments. This can have the added benefit of allowing both partners to claim the $2000 Pension Tax Benefit.
Joint & Family Filing
To get the best value in filing your taxes, families should consider filing their returns at the same time. It is important to declare a spouse’s or in some cases a child’s income to calculate the amount of credits and benefits you are entitled to receive. Filing separately may mean that transfers of credits between spouses are missed or you lose the advantage of claiming medical expenses, charitable donations, or amounts for children in the most advantageous manner.
You can claim Medical Expenses that you and your partner paid for on either Tax Return. Claiming all medical receipts on only one of the Tax Returns will have the benefit of not having to reach the threshold on each separate return.
If possible use a full printout from your pharmacy listing all of your medical expenses for the year, this will ensure that nothing is missed.
Registered Retirement Savings Plan (RRSP)
Remember to file your RRSP contributions made in the first 60 days of 2017 on your 2016 tax return.
Tax information slips issued for 2016 must be claimed on the 2016 Tax Return. A missed slip could result having to file an adjustment request at a later date. It could also mean the possibility of a reassessment by Canada Revenue Agency in the next few years and an amount owing plus interest. Some information from financial institutions such as T3 and T5 slips may not be sent until the end of March so make sure you have all income slips before you file your Tax Return.
Save your transit passes and the receipt at the time of purchase. Monthly or annual passes (not individual tickets) may be claimed as a non refundable credit.
Tuition Fees paid to post secondary College or University are generally deductible. To claim the deduction you must have a T2202A slip issued by the learning centre. Special rules apply to institutions outside of Canada. In some cases tuition paid may also be transferred to a Parent or Grandparent.