It’s tax time and we have valuable information for you
Did you know?
The Canada Revenue Agency (CRA) is here to help you during tax season. Here’s some information you should know about your taxes, including ways to save money at tax time.
1. Plan ahead – Register for My Account and sign up for direct deposit, so you’ll be ready when you file your income tax and benefit return. You can use My Account to view your tax slip information, your registered retirement savings plan (RRSP) deduction limit, your tax-free savings account (TFSA) contributions, pay with pre-authorized debit, track your return and refund once it’s filed, and more.
2. TFSA – Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not taxable -either while held in the account or when withdrawn.
3. Registered retirement savings plan (RRSP) – You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan. The RRSP contribution deadline for the 2014 tax year has been extended to Monday, March 2, 2015, as March 1 falls on a Sunday.
4. Charitable donations – Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donee may be eligible for a charitable tax credit. Also, take advantage of the first-time donor’s super credit on donations of money to a maximum of $1,000 made after March 20, 2013, if you are considered a first-time donor.
5. Families – There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes—save those receipts! If you care for dependants with a physical or mental impairment, you may be able to claim an additional amount up to $2,058 in 2014 when calculating certain non-refundable tax credits related to the family caregiver amount. New for the 2014 tax year is the proposed Family Tax Cut, a federal non-refundable tax credit of up to $2,000 that is available to eligible couples with children under the age of 18.
6. Students – Were you a student during 2014? You may be able to claim tuition, textbook, and education amounts, public transit passes, as well as the interest you paid on your student loan.
7. Seniors – If you receive a pension, you may be able to elect to allocate up to 50% of your eligible pension income with your spouse or common-law partner to reduce the taxes that you pay. You may also be eligible to claim the age amount, medical expenses, and the disability tax credit. If you are a dependant and being cared for by a caregiver, they may be able to claim the family caregiver amount.
8. Home buyers – You may be able to claim an amount of $5,000 for the purchase of a qualifying home if you are a first-time home buyer in 2014.
9. Representatives – If you manage a friend or family member’s tax affairs or if you wish to have someone manage your tax affairs on your behalf, Represent a Client is a secure service that allows the representative to check the status of tax returns and refunds, make changes to tax returns, request remittance vouchers, view RRSP and TFSA information, and more.
10. Community Volunteer Income Tax Program (CVITP) – If you need help filing your return, have modest income, and a simple tax situation, community organizations hosting tax preparation clinics across the country may be able to help you. For more information on the CVITP, go to www.cra.gc.ca/volunteer.
Fast facts about filing your income tax return online
• Filing your return online lets you get your refund faster and avoids interruptions to your Canada child tax benefit or GST/HST credit payments.
• Filing online is easy. Certified software packages and web applications (some of which are free to use) guide you through the process, making sure you don’t miss out on credits and benefits you may be eligible for.
• Filing online is secure. The CRA uses the same high level of online security Canadian financial institutions use.
• Go to www.cra.gc.ca/getready and let us walk you through the process step by step.