It is that fun time again when we get the chance to sit around and see where our money has gone and hopefully come up with some habits to save even more in the next year. As a mortgage advisor, I consistently explain to my clients that after their mortgage funds the fun doesn’t stop there. I am part of their financial team and want to coach them to make smart fiscal decisions at all times. I am there to remind you that when you get your tax refund, instead of spending freely, to think about financial strategies such as first putting roughly 35% of it towards a lump-sum payment towards their principal just like a normal pay cheque.
Here are 4 simple tax deductions and credits that you might has missed out on this year, did not know about and can use for next year. Remember keep your documents annually in a easy to find folder or Dropbox account. Also, remember that I am not a practising accountant. If you are looking for an all-star accountant, I know a great gentleman that I use annually and I get rave reviews for referring people to him.
1. Children’s Fitness Tax Credits
You can claim to a maximum of $1,000 per child the fees paid in 2014 relating to the cost of registration or membership for your or your spouse’s or common-law partner’s child in a prescribed program of physical activity. This includes children’s camps of 5 days or more or programs lasting at least 8 weeks. Unfortunately, fees paid by parents for accommodation, travel, food, or beverages (e.g. room and board at a fitness camp) do not qualify.
2. Universal Child Care Benefit (UCCB)
Under proposed legislation, the Government is increasing and expanding the UCCB starting in 2015. The UCCB is being enhanced by providing up to $1,920 per year for each child under the age of 6, and introducing a new benefit of up to $720 per year for children aged 6 through 17. The UCCB is designed to help Canadian families, as they try to balance work and family life, by supporting their child care choices through direct financial support.
To enrol, you fill out the form HERE
These benefits can be used to help apply for mortgages.
3. Child Care Expense Deductions
What are they?
Child care expenses are amounts you or another person paid to have someone look after an eligible child so that you or the other person could:
- earn income from employment;
- carry on a business either alone or as an active partner;
- attend school under the conditions identified under Educational program; or
- carry on research or similar work, for which you or the other person received a grant.
The child must have lived with you or the other person when the expense was incurred for the expense to qualify. Usually, you can only deduct payments for services provided in Canada by a Canadian resident. Read Other situations for exceptions.
4. Adoption Expense Tax Credit
This is becoming more and more common with an increase in adoptions in Canada. You can claim up to 15% of $15000 ($2250) for going through the process of being awesome and adopting a child.
So this was 4 ideas to think of. I hope that you have learned at least something and heck, maybe you will send your child to camp because you didn’t even know about the money you get back. That would make me very happy.
Of course, if you have any questions, comments, suggestions, please feel free to ask away to me!
Nick
