Tax Tips – Get the Most Out of Your Tax Return
It’s tax season again! To help you get the most out of your tax return, we’ve got tax tips from local accountants, Court Carleton Accounting & Tax Services and Irene McCardle, CPA, CMA, CFP.
Tax Tips from Irene McCardle, CPA, CMA, CFP
-A person can earn up to $11,635 before they pay any federal tax and up to $9,895 before they pay any provincial tax.
-Seniors (age 65 and older) have an additional deduction of $7,225 federally and $4,831 provincially.
-The seniors tax credit is clawed back starting at $36,430 of income, and is completely eliminated at $84,597 of net income.
-If you have eligible home accessibility expenses, you can claim up to $10,000 as a Federal tax credit on your return.
-If you qualify as a first-time home buyer, you can deduct up to $5,000 as a Federal tax credit on your return.
-The maximum withdrawal from his/her RRSP towards the purchase of a home (Home Buyers’ Plan) is $25,000 – contributions to be repaid over 15 years or included in income annually.
-The annual withdrawal from his/her RRSP towards the Lifelong Learning Plan is $10,000 with a maximum limit of $20,000 – repayments over 15 years, conditions apply.
–Volunteer firefighters and search and rescue volunteers can claim a tax credit of $3,000 on their Federal returns.
-The maximum contribution an employee can make to the Canada Pension Plan is $2,564. or 4.95% of his income – which is matched by the employer.
-The maximum contribution to Employment Insurance by an employee is $836.19 or 1.63% of his income – the employer pays 1.4 times the employee amount.
-The maximum RRSP contribution is $26,010 or 18% of earned income.
-The 2017 Tax Free Savings Account maximum contribution is $5,500 with a cumulative maximum of $52,000 plus repayment of any withdrawals.
Tax Tips from Court Carleton Accounting & Tax Services
-If you have Adoption expenses they could be claimed for a tax credit.
-If you have infirmed dependants under the age of 18 there is a Canada caregiver tax credit of $2150 or if you have an infirmed dependant over the age of 18 the maximum is $6883 depending on their income.
-If you pay for Student Loan, interest payments are deductible, if never claimed you can go back five years.
-If you have donations they can be claimed for a tax credit, if never claimed you can go back five years.
-If you have medical expenses such as drugs, vision, dental and travel these expenses may be able to be claimed as a tax credit. In addition you may also qualify for a medical expense supplement.
-If you over contributed to CPP or EI through employment any excess amounts may be refunded in that year.
-If you have working income from employment or business you may be able to claim The Basic Working Income Tax Benefit refund, for a single person the maximum is $1043 and for a family the maximum is $1894
-If you are a teacher there is a School Supply Benefit of a maximum of $1000
Giv’er Miramichi is about “What’s up, what’s new, what’s happening”. We are focused on building people up, supporting one another and celebrating our successes.