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Checklist could save you tax dollars

Take a chance on a checklist to win perhaps hundreds, even thousands, of dollars. No, this isn't a lottery. It's a carefully designed list that includes ways you could save tax.

Take a chance on a checklist to win perhaps hundreds, even thousands, of dollars.

No, this isn't a lottery. It's a carefully designed list that includes ways you could save tax. Most Canadians think about income tax for a very short period around this time each year. Chartered accountants (and Ottawa), on the other hand, think about and deal with income tax all year.

Lohn Caulder LLP, CAs (like most other accounting firms) sends a summary personal tax checklist or a comprehensive checklist to its clients. You may access these lists here.

And especially if you have a family, also review the Canada Revenue Agency's "Top things families should know about taxes" here. If any of the following relate to you/your family, make sure they are included on your tax return - whether or not you complete and file it yourself. In some cases, if you missed claiming a credit or deduction in the past, you might be able to go back to claim the money. Going forward, you will now know to make the claim every year if you qualify - and that could easily save you thousands of tax dollars.

- The Canada child tax benefit - a tax-free monthly payment. The increased universal child care benefit.

- The family tax cut. Children's fitness tax credit. Children's arts tax credit. Child care expenses - which could include a summer day camp.

- The GST credit. The working income tax benefit.

- The disability amount. Family caregiver amount. Child disability benefit. Medical expenses - choosing the optimum 12-month period ended in 2014.

- Education deductions and credits - some of which might be transferable to a parent or spouse if the student can't use the claim.

Consider having children who received income last year file tax returns even if there are no immediate benefits. This can start to build up RRSP contribution room which can then be used when tax has to be paid.

Up to 50 per cent of eligible pension income may be split between spouses or common-law partners; that could save tax if one person is in a lower tax bracket than the other. (Even if this doesn't apply to you, make sure retired relatives are aware if this could apply to them.)

Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally. Email mike.grenby@gmail.com