(NC)The days
are starting to get longer, and you can feel that spring is right around the
corner. With spring, of course, comes tax-filing season, so as “filing taxes” joins
“spring cleaning” on your to-do list, here are 10 ways to save you money—and
even land you that refund you've been hoping for.
Tax-free savings
account: Using a TFSA is a smart way to save on tax. Generally, the
interest, dividends, and capital gains earned on investments in a TFSA are not
taxed—not when they are held in the account or when they are withdrawn.
Registered retirement
savings plan: Pay less tax and save for your retirement at the same time.
Any income that you earn in your RRSP is usually free from tax as long as the
funds stay in the plan.
Charitable donations: Donations of
cash, goods, land, or listed securities made to a registered charity or other
qualified donee may be eligible for a tax credit.
Parents: All those
mornings spent at the hockey rink and afternoons spent at the ballet studio can
mean savings—with the children's fitness and arts tax credits. Child care is
also deductible, so gather up your receipts.
Family caregivers: If you have
a dependant with a physical or mental impairment, you could be eligible for an
additional $2,000 this year with the new family caregiver amount.
Student: Were you a
student in 2012? You may be able to claim tuition, textbook, and education
amounts, as well as moving expenses if applicable. And if you've recently
graduated, you can claim the interest you paid on your student loan.
Public transit amount: If you are a
public transit rider, you may be able to save by claiming the cost of your
transit passes. You can get up to 15% of the amount claimed.
Seniors: If you
receive income from a pension, you can split up to 50% of 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 amount.
Home buyers: You may be
able to claim up to $5,000 if you bought your first home in 2012.
Hiring an apprentice: Did your business
employ an apprentice? An employer who paid a salary to an employee registered
in a prescribed trade in the first two years of his or her apprenticeship
contract qualifies for a non-refundable tax credit.
Make filing your taxes this spring even easier by doing it online. It's fast, secure and you may be able to use cost-free filing software. The Canada Revenue Agency offers step-by-step instructions at www.cra.gc.ca/getready. Source: News Canada
Make filing your taxes this spring even easier by doing it online. It's fast, secure and you may be able to use cost-free filing software. The Canada Revenue Agency offers step-by-step instructions at www.cra.gc.ca/getready. Source: News Canada
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