The 2014 fiscal year is now complete and it's time for you to complete your tax returns. Amilia would like to share some tips to help you make the most of the deductions to which you are entitled to.
Has your child participated in physical, artistic, cultural or recreational activities whose duration is at least eight consecutive weeks or at least five consecutive days? Have you made a donation to a charity?
Check out five tips to help you out this tax season:
TIP 1: CLAIM YOUR FEDERAL TAX CREDIT FOR CHILDREN’S FITNESS ACTIVITIES
The Canadian government has doubled the tax credit allocated to children's fitness by increasing its current limit to $ 1,000 for the 2014 and subsequent taxation years.Eligibility
The child must have been under 16 years of age or under 18 years of age if eligible for the disability amount at the beginning of the year in which an eligible fitness expense was paid.
TIP 2: GET YOUR FEDERAL TAX CREDIT FOR ARTISTIC FOR CHILDRENS ACTIVITIES
With the Children’s Arts Tax Credit, you can request a maximum of $ 500 per child for fees paid in 2014 for registration or membership of your child in an eligible program of artistic, cultural, recreational or developmental nature. Each year, the tax credit for children's arts will be equal to the tax rate for the lowest individuals (15 % in 2014 ) times the allowable amount for each child.
The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which an eligible arts expense was paid.
You can claim this amount if another person has not already claimed the same fees and the total claimed is not more than the maximum amount that would be allowed if only one of you were claiming the amount.
TIP 3: CALCULATE FEDERAL TAX CREDIT FOR CHARITABLE DONATIONS AND GET THE SUPER CREDIT FORF FIRST TIME DONATIONS
Currently, the non-refundable charitable donations tax credit (CDTC) is calculated as the total of:
- The lowest income tax rate (15% for 2013) multiplied by the first $200 of charitable donations claimed by an individual; and
- The highest income tax rate (29% for 2013) multiplied by the portion of the donations claimed by the individual that exceeds $200.
For gifts made after March 20, 2013, eligible first time donors will receive an additional federal tax credit. This new credit effectively adds 25% to the rates used in the calculation of the CDTC for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.
TIP 4: ENJOY THE INCOME SPLIT TO REDUCE YOUR TAXES PAYABLE FOR FEDERAL RETURNS
This new tax-cut measure will allow an eligible taxpayers (families with children under age 18) to transfer up to $50,000 of income to his or her spouse for tax purposes in order to collect a non-refundable tax credit of up to $2,000 per year
TIP 5: STAY INFORMED OF CHANGES IN FEDERAL AND PROVINCIAL TAX POLICY
Check out the resources at your disposal to have a better understanding of tax policies in force: websites, brochures, guides, etc. The state of the economy often forces governments to change or improve certain programs that you may be eligible for.