So, you found that very first T4 slip in the mail. Yes, it’s tax season again. For your benefit, we at Optimize Wealth Management have compiled four ways to get a little extra from your tax return this year.
1. File as a Family
As a married couple, you both can claim several non-refundable tax credits on each of your returns. These include medical expenses, donations and political contributions. Furthermore, you can also transfer non-refundable tax credits to one another (the age amount, pension income amount, disability amount, child amount and tuition, education and textbook amounts). The point is simple, embrace your family during tax season – filing your taxes as a family can make your pockets a little deeper.
2. Don’t Miss Employment Deductions
If your employment contract requires you to pay out-of-pocket expenses, you may be able to get those deductions back. Note that your employer has to certify these expenses by way of form T2200 – Declaration of Conditions of Employment.
3. Have Your Partner File Despite Small or No Income
Even if your partner makes little to no income, there are still many reasons to file. The two biggest are not missing out on GST / HST tax credits and the Child Tax Benefit.
4. Keep and File Medical Expenses
Many people often ignore this tax benefit because of the high threshold of eligibility. A person must have expenses that exceed roughly $2,200 or three per cent of their net income. But there is a long list of expenses that qualify, so don’t assume you’re short. You just might be surprised.