It’s hard to believe that another tax season is here. As a matter of fact, we, as Canadians, were allowed to file our taxes with Revenue Canada starting on February 20, 2017.
To finish off this three-part series, we want to dive into the last 7 deductions that you as a taxpayer should be made aware of.
11. Self-Employment Expenses – T2125
Being self-employed has a number of benefits, including being able to deduct expenses that you have paid out to earn income. You can also deduct the part of the expenses of your home if you have a home office where you conduct 50% or more of your business. The only caveat is that you cannot claim Business Use of Home expenses if you if you didn’t make money in your business as you are not allowed to incur a loss from these types of expenses.
12. Interest Paid on Student Loans – Line 319
Are you still paying off your student loans from attending post-secondary education? There is a deduction for that. You had to have received from under the Canada Student Loans Act, or the Canada Student Financial Assistance Act to qualify. Keep in mind, you can carry forward this credit for up to five years.
13. Eligible Educator School Supply Tax Credit
Are you a teacher or an Early Childhood Educator (ECE)? You can now claim up to a 15% refundable tax credit based on an amount of up to $1,000 of eligible supplies purchased by the teacher or ECE.
14. Apprenticeship Job Creation Tax Credit
Did you hire an apprentice last year? And did that apprentice work in a prescribed trade? Then you may be eligible to claim the Apprenticeship Job Creation Tax Credit. This is a non-refundable tax credit that is equal to 10% of the eligible salaries and wages payable to your apprentice to a maximum credit of $2,000 per year.
15. Volunteer Firefighter Credit – Line 362
Did you complete at least 200 hours of eligible volunteer firefighting services or 200 hours as a search and rescue volunteer? Then you can claim $3,000 for the Volunteer Firefighter’s Amount (VFA) or the Search & Rescue Volunteers’ Amount (SRVA). Remember, though, you cannot claim both!
16. Education and Tuition Amounts
So your protégée has moved off to post-secondary education. And “mom and dad” are helping foot the bill. With a stroke of a pen, your son/daughter can transfer up to $5,000 in tuition amounts to you to help offset the costs that you are outlaying to help them succeed in the next step of their “careers”.
17. GST/HST Credits
And finally. If you are 19 or older, you should be filing a tax return, even if no income was earned during the year. You are entitled to receive the GST/HST quarterly payment and the calculation is based on your yearly income. Don’t miss out…. File that return!
There are numerous deductions and credits that you can take advantage of. These are just a small portion of what is available to tax payers today. My recommendation is that you speak to a professional tax preparer to discuss what you can and cannot claim, and take the time to get to know your personal situation.
Until the next time,