THOSE T4, T5 and other information slips have started to arrive, heralding that taxing time of the year once again.
Even if you have somebody else prepare your tax return, you still need to provide information and perhaps receipts to make sure you/a family member will not miss out on any deductions or credits.
. Spread the love and save ta If family members in a lower tax bracket worked in your business (including revenue property) last year, you could pay them what you would have paid an outsider to do the same work. The cheque should be dated in 2012.
. Cut the cost of raising children: You may claim credits (which directly offset tax, and so are more valuable than deductions) for the cost of children's physical activities (Children's fitness tax credit); arts, recreational and developmental activities (Children's arts tax credit); daycare or summer camp (Child care expenses). Also check the Universal child care benefit, plus the tax-free Canada child tax benefit and Child disability benefit.
. Travel more lightly: Claim the Public transit amount for you or an eligible dependent.
. Home sweet home: Claim up to $750 if you bought a qualifying home last year (Home buyer's amount).
. Ease the pain: Claim medical and dental expenses for any 12-month period ending in 2012 for yourself, spouse or common-law partner, or children. Choose the 12 months that give you the highest total.
. Interesting interest: You might be able to claim "carrying costs" like the interest on money borrowed to invest, and even the cost of a safe deposit box.
. Learn this one: Student and education expenses can sometimes be transferred to a supporting family member or carried forward.
See if you or a family member could qualify for various disability or care-giving benefits, or for low-income credits or even advance payments (Working income tax benefit, GST/ HST credit).
File a tax return even if you/a dependent won't have to pay tax, to build up RRSP contribution room.
For more details about and links to these and other tax breaks, go to cra-arc. gc.ca.
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 [email protected]
