Tax season is here and it’s time to start gathering all of your important documents to take to your tax accountant.
As you begin gathering all of your tax slips, don’t forget to bring your receipts for these, often overlooked expenses:
Although income splitting has been severely limited, there are a number of income splitting opportunities available.
For seniors, pension income splitting can reduce your tax bill, but those splitting pension income should be mindful that they may trigger the OAS clawback or affect other tax credits
For other individuals, you may split with your spouse or children under very specific circumstances. Planning is required because some of these arrangements can become complex and it is easy to run into problems.
You can receive a tax credit for medical expenses you paid within certain limits. If you are a participant in a benefits program, you may be missing some important tax credits.
Many employer’s who offer medical and dental “benefits” are actually deducting a portion of the premium from the employees paycheque. These deductions may qualify as medical expenses and can help you reduce your tax bill.
Also under medical expenses are co-payment amounts and dental expenses. If you have had a number of visits to the doctor in the past year, you may be entitled to additional credits.
If you are a commission sales person or are required to pay certain employment expenses, these can be deductible. You may be able to claim additional home office expenses.
Interest Paid on Investment Loans
If you have a margin account or have used a loan or line of credit to invest in the stock market, the interest on these loans may be deductible.
If you have made charitable donations in the last year, the tax credit is very generous. You receive the minimum tax credit of 15% on the first $200 and 29% on every dollar thereafter.
If you donated securities or other certain other assets, you may be entitled to completely eliminate the capital gain.