It’s a brand new year, but don’t think of 2015 as history until you’ve filed your 2015 income tax return. Whether your tax return is a necessary evil or an opportunity, paying attention to detail could reward you with benefits you didn’t know about.
Fortunately, Canada Revenue Agency’s website provides a lot of good information.Unfortunately, the list of credits, deductions, and rebates gets longer every year. This has created a lot more work for tax preparers. During the busy months of March and April, they may not take the time to give their clients a “tax education.” Whether you do your own tax return or not, doing your homework could reward you with the best “wages” you’ll make all year.
An easy place to start is the bilingual tax guide that our local MP has put in all our
mailboxes for the last couple of years. It lists 31 ways to save taxes, and that’s just a start. New items for 2015 include a refundable fitness credit for children. Unlike previous years, you’ll get money back even if your income is too low to pay federal taxes.
The Universal Child Care Benefit now includes children over age six. These
payments are taxable to the lower-income spouse (or a child, if you are a single parent). As a result, your tax refund may be lower this year than previously, but you’re still better off than you were in 2014.
There is not enough space in this article to provide a complete list of things to look out for, but here are a few ideas.
1. If you have medical expenses, the Refundable Medical Expense Supplement could apply even if you didn’t earn enough income to be taxable.
2. When considering how much an RRSP contribution would put back in your pockets, be sure to consider its impact on the quarterly GST credit, child tax benefits, etc. For families with modest incomes and lots of children, this could double the total benefit.
3. Manitoba offers a tuition tax rebate worth up to $15,000, over a minimum of six years, to taxable graduates. It is based on the postsecondary tuition you reported after 2003 (even if some of it relates to a program of studies you did not graduate from). Students can claim five percent of tuition paid each year as an advance tuition tax rebate.
4. If you are taxable, donations will save you 46 percent of the amount donated (the first $200 are less). If you keep those receipts, you can afford to be twice as generous!
While you are looking for your 2015 receipts, why not set up a system to collect
2016 receipts at the same time? Your accountant will thank you.
