There are a number of ways to reduce the amount of tax you owe, and keep more money in your pocket at tax time.
- Does someone in your family regularly take the bus, train, subway, or ferry to work? You may be able to get a non-refundable tax credit for the cost of the transit passes by claiming the public transit amount. More info here. Public transit tax credit
- Have you retired and now receive a pension? You can split up to 50% of eligible pension income with your spouse or common-law partner to reduce the overall taxes you pay. See pension income splitting for more information.
- Do you work in the trades? Trades people can deduct part of the cost of eligible tools purchased throughout the year. You need a T2200 from your employer to allow you to deduct these expenses. View the guide here.
- Did you buy your first home in 2011? Check out the info about the Home buyer’s tax credit – If you’re a first-time home buyer you may be eligible to claim $5,000 on the purchase of your new home, which can save you up to $750.
- Child care expenses – If you have children, you may be able to claim child care expenses that you or your spouse or common-law partner paid so that either of you could work, do research, or go to school.
- Students – Are you still in school? Students can claim the tuition, education, and textbook amounts. Have you graduated recently? You may be eligible to claim the interest that you paid on your student loans.
- Families – Save those receipts! All the activities you have been paying for throughout the year (piano, karate, tutoring, hockey, and more) may save you money at tax time.
- Plan ahead – Submitting your income tax and benefit return before the tax-filing deadline means you can avoid having to pay the 5% late-filing penalty! Find out here how to file your return.
Whenever in doubt, we can help. Contact us with your questions or for your tax preparation!