Before we truly get to start enjoying the sunshine and warmer weather, we have one more hurdle to overcome … tax season! Are you prepared? We thought it would be a timely reminder on some of the things you will need to file your return, whether you are sharpening the pencil yourself or working with a professional, the prep work must be done.
Medical Expenses Qualifying expenses can be claimed for a non-refundable tax credit. Did you know that you can use claims from earlier than 2017 for this credit … the fine print is that the claims must occur within any 12 month chronological period and not have been already claimed. You can also claim for yourself, your spouse/common law partner as well as dependent children under the age of 18. And here is the math … the formula for the credit is 15% of the expense more than the lesser of 3% of your income or $2,268 for 2017.
Charitable Donations Qualifying donations made in the 2017 calendar year (or within the last 5 years if unclaimed) are eligible for a federal tax credit. The math on this one got a little more complicated this year, but essentially works out to 15% of the first $200 of donations, plus 33% of the remainder (caveat – this gets a little more complicated with higher donations and incomes). There is also a provincial tax credit applied. Plus, CRA will allows spouses claim on either returns (allowing a little more flexibility on your returns).
Child Care Expenses Being a parent is one of the biggest joys … and expenses as an adult. Expenses for child care is a deduction up to $8,000 per child under the age of 7, plus $5,000 for those over 6 but under 16. Generally speaking, the deduction would be claimed by the lower income earning spouse/common law partner.
More There are more as well … the last partial year for transit passes, interest expenses, carrying charges, etc.
This is for information purposes only. For your specific return details, please consult with your tax specialist.
If you are looking for a specialist to work with, call our office – we love to introduce great people to each other!
The best preparation for tomorrow is doing your best today. - H. Jackson Brown Jr
