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Financial to-do’s

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  1.   Healthy Homes Renovation Tax Credit:

The Healttodohy Homes Renovation Tax Credit is a permanent, refundable personal income tax credit for seniors and family members who live with them. As a senior 65 years or older in Ontario, you could qualify for this tax credit to help with the cost of making your home safer and more accessible.

If you qualify, you can claim up to $10,000 worth of eligible home improvements on your tax return each year.

For more information about the Healthy Homes Renovation Tax Credit you can also go to
http://www.ontario.ca/taxes-and-benefits/healthy-homes-renovation-tax-credit

2.       Are you unsure when your children should start filing tax returns?

As soon as they start earning some income they should file a return. Benefits of filing include:

  • Accumulating RRSP room
  • Recovery of amounts that may have been withheld from their pay that they were not required to pay.
  • Making sure they are in the system to start collecting benefits they may be entitled to when they turn 19.
  • To get them all the credits they quality for – such as rent, public transit, tuition and education amounts.

Also, make sure you file as a family.  This ensures that credits are used to their maximum advantage to the family.  Ensure you get all the credits and deductions you qualify for.

3.       Important information for many taxpayers!!

This January the CRA will send approximately 33,000 letters to taxpayers who earn self-employment income, receive rental income, or are employees who have claimed employment expenses on their income tax return.

The campaign is part of the CRA’s efforts to encourage voluntary compliance among groups of taxpayers who, their research indicates, may be at risk of non-compliance.

The CRA gives taxpayers a chance to come forward and correct their tax affairs through My Account, a T1 Adjustment Request or the Voluntary Disclosures Program.

If you receive correspondence from CRA and would like help understanding it please contact us at www.ShoeboxTaxPrep.ca. You can also get more information at www.cra.gc.ca/lettercampaign, or by calling the Individual Income Tax Enquiries line at 1-800-959-8281, or call the Business Enquiries line at 1-800-959-5525.

4.       Get ready for Tax Season

It will be tax time before you know it.  Why not start gathering all tax related receipts now?

This is a good time to review your medical expenses/premiums paid and donations made last year as well as other deductions and credits you may qualify for.  T4’s, T5’s and other income related slips and materials will be mailed starting in mid-February, followed by all other tax slips.

The RRSP deadline for a deduction in 2012 is March 1st, 2013.  The maximum RRSP contribution limit for 2012 is the lesser of 18% of earned income for 2011 to a maximum of $22,970. This is based, in part, on your earned income in the previous year, pension adjustments (PAs), past service pension adjustments (PSPAs), pension adjustment reversals (PARs), and your unused RRSP deduction room at the end of the previous year are also used to calculate the limit.

Article prepared by Sandra Janicki of Shoebox Tax Prep.
Let www.ShoeboxTaxPrep.ca make sure you get all the deductions and credits you deserve.

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