Tips For Saving Money This Tax Season in Canada
Looking for tips to save money this tax season? Want to make sure you haven’t missed out on a tax credit? The Canada Revenue Agency has come out with some tips ahead of the April 30, 2017 filing deadline.
Families with kids get a whole range of options. You have to tell the Canada Revenue Agency that you have children, if you haven’t already, and a quick and easy way to do that is to fill out the automated benefits application, which will register you for the Canada child benefit as well as any provincial family bonus and early childhood tax benefit.
The Canada child benefit is a tax-free monthly payment to help families with the cost of raising kids.
- Up to $6,400 annually for each child under the age of 6 and $5,400 annually for each child aged six-17.
Childcare expenses can also be claimed, and if your child is eligible for a disability tax credit, you can claim a child disability benefit.
Parents of kids enrolled in fitness or arts programs get to claim $500 or $250, respectively, of the fees you paid for those programs in 2016.
There are tax credits for individuals and child-free families too:
- Working income tax credit applies for all Canadians aged 19 and older who pay income tax and make under and $20,314 a year.
- The same tax credit applies to families or those with children who take in $29,186 a year.
- A GST/HST credit, with the amount depending on income and number of children.
What do you need to do before filing your taxes?
You’ll need to gather a number of documents, based on how you made your money. That can include the following:
- A T1 General 2016 form, which allows you to note your income, credits and deductions.
- If you’re an employee, a T4, Statement of Remuneration Paid form, which shows how much your employer paid you.
- If you’re retired, a T4A, Statement of Pension, Retirement, Annuity and Other Income, which shows you much you earned in retirement payments.
- If you made money from investing, you’ll need a T5, Statement of Investment Income, which shows items such as dividends, interest from bonds or money you loaned, and much more.
- If you received Employment Insurance (EI), a T4E, Statement of Employment Insurance and Other Benefits.
- If you received worker’s compensation or social assistance, a T5007, Statement of Benefits.
What is the deadline for filing this tax season?
April 30 — if you have a balance owing. The regular filing deadline is April 30, but since that falls on a Sunday this year, the CRA will consider your taxes filed on time as long as they are received or postmarked on or before May 1.
June 15 — If you or your spouse or common-law partner ran a business in 2016. But you still have to pay your taxes by April 30 if you owe money to the government.
Filing taxes is a necessary evil. Remember: as long as you do your research and stay collected, you’re sure to make it past April (or June) with a pulse and a couple extra dollars in your pocket. If you need help with your taxes or are looking for ways to reduce what you owe next tax season, please contact us.