Tax season is in full swing! We've put together a short list of items you can claim on your tax return that you might not have been aware of.
Public transit amount
If you decided to go green and bought a monthly/annual pass for travel within Canada, you can claim the cost on line 364. We definitely support this environmentally friendly approach (considering we're virtual and paperless)!
It's time to send your kids to piano lessons! Both fitness and art credits can be claimed expenses, which covers sport activities, tutoring, language and music classes, among other expenses.
Home office tax write off
You can deduct your mortgage interest through business from your home by filling out Form T777 'Statement of Employment Expenses'.
There are three ways you can receive a tax write off through your home office:
1. Selling some type of product or service on a part-time basis
2. Using your home as your principal place of business
3. Using your home on a regular or continuous basis to meet customers or clients
If your employer required you to use your own vehicle during employment and you were not reimbursed, you can claim a deduction for a portion of all your car costs on Form T777. This can include gas, oil, repairs, insurance, interest on a car loan, lease costs and more.
Care of eldery parents
The sandwich generation is upon us! If one of your elderly parents is living with you, you may be able to make a claim as the caregiver depending on their income and age.
Started a small business but obtained a few losses in the first couple of years? Losses such as car expenses, property loss from a rental, among others can be applied against any other type of income you report by filing Form T1A.
Travel medical insurance
If you purchase out-of-country medical insurance (and we really hope you do), you can claim it as a tax credit.
To encourage first-time home buyers, the government will refund up to $5,000 as a tax credit if you meet both of the following requirements:
1. You purchased a qualifying home
2. You didn't live in another home (you and your partner) owned last year or the four preceding years.
In addition, you can claim any moving expenses on line 219 if you've moved closer to your employer, you moved to carry on a business at a new location or moved to study as a full-time student at a qualified post-secondary institituion. Eligible moving expenses include packing and moving your household goods, the cost of selling your old home, and utility hook-ups and disconnections.
Charities will provide tax receipts when you make a donation. Once you exceed $200, you'll receive a larger tax credit. You'll be giving back to the community and saving some money, it's a win-win!
It's important to look back at the past year and realize what you have spent. There's a chance that you may be able to receive a refund for these expenses!
If you're still unsure, be sure to contact the Canada Revenue Agency or a certified tax preparer to determine if you're eligible for these tax breaks.