Did You Know
- Apprenticeship Incentive Grants
If you are enrolled in an apprenticeship program in one of the Red Seal trades you may be able to apply for a taxable cash grant of $1,000 for each of your first and second year. The Province of BC also offers various refundable income tax credits for apprentices. - Apprenticeship Job Creation Tax Credit
If you are an employer that has employees working in their first two years of an apprenticeship program, you may be able to claim a credit for 10% of their wages and salaries up to a maximum of $2,000 per employee. The Province of BC offers tax credits for levels 3, 4 and higher. - Apprenticeship/ Tradesperson Tools Deduction
You may be eligible to deduct the cost of tools you purchased for employment purposes in a tradesperson or mechanical apprenticeship capacity. This cost includes the amount of GST/HST and PST paid on the tools. - Apprenticeship Completion Grant
If you complete your training in one of the Red Seal trades, you may be able to apply for a taxable cash grant of $2,000. - Canadian Learning Bond
For families entitled to the National Child Benefit supplement for their child, Government of Canada will provide a Canada Learning Bond (CLB) of up to $2,025 as an incentive for modest-income families to save early for their child's education. - Carrying Charges
You cannot deduct the interest paid on money borrowed to purchase RRSP's, RESP's and TFSA's. You may, however, deduct safety deposit box fees and fees for certain investment advice. - Children's Fitness Tax Credit
You can claim a tax credit for fitness programs up to $500 per child less than 16 years of age. The credit is higher and the age limit is increased to 18 for children who qualify for the disability tax credit. - Contractors
If you employ contractors that are classified as employees under Canada Revenue Agency's definition, you are responsible for both the employer's and employee's share of CPP contributions and EI premiums. You may be subject to penalties and interest on un-remitted amounts. - Contributions to a Federal Political Party
You can claim a tax credit on up to $1,275 of your donations to a federal political party. A $1,275 donation would result in a $650.00 credit. - EI Measure for Self-Employed Individuals
Starting January 2011, self-employed Canadians will be able to access Employment Insurance (EI) special benefits. Special benefits include maternity, parental, sickness and compassionate care. In order to be eligible for the EI special benefits, self-employed persons must enter into an agreement with the Commission through Service Canada. Agreements can be entered into starting January 31, 2010. - Employment Expenses
If your employer requires you to pay for certain expenses in the course of your employment, you may be able to deduct these expenses on your income tax return. Request a T2200 Conditions of Employment form from your employer. - Employment Travel Expense
If an employee is required to be away from his principal residence or at a special work site for a temporary period of at least 36 hours, that employee may exclude from income the value of board and lodging or reasonable allowance for board and lodging received from the employer. Some conditions apply. - GST on a New Rental
When you purchase a newly constructed or completely renovated residential rental property, you may be entitled to a GST/HST rebate provided you meet certain requirements. - Home Buyer's Plan (HBP)
You and your spouse or common-law partner can withdraw (tax free) up to $25,000 from your RRSP in a calendar year to buy or build a qualifying home under the Home Buyers' Plan. This amount must be repaid or included in your income over the following 15 years. - Home Buyer's Tax Credit
You may be eligible to claim a $5,000 home buyers' non-refundable tax credit for the home buyers' tax credit if you or your spouse or common-law partner have not recently owned a home. Certain criteria must be met. - 2009 Home Renovation Tax Credit (HRTC)
A non-refundable tax credit may be received for eligible expenses incurred between January 27, 2009 and February 1, 2010 to make improvements to your house, condo or cottage. Expenses over $1,000 and less than $10,000 qualify for the non-refundable tax credit. - Interest Charged by CRA
Interest charged by Canada Revenue Agency is not deductible from business income. However, legal and accounting fees paid to object to interest and penalties are deductible. - Interest Paid on Student Loans
Along with tuition fees paid for education, and the textbook credit, you may be able to claim most of the interest paid on your student loans as a non-refundable tax credit if you meet certain criteria. - Medical Expenses
If medical treatment is not available within 40 km of your locality, you may be able to claim the cost of public transportation or vehicle expenses to get the treatment elsewhere. Furthermore, if the travel distance is greater than 80 km, you may also be able to claim the cost of your meals and accommodations. - Medical Expenses - Mobility Impairment
If a renovation or alteration gives someone who has a severe and prolonged mobility impairment access to their dwelling place, they may be able to claim this as a medical expense. - Moving Expenses
You may be eligible to deduct certain moving expenses if you moved a distance greater than 40 kilometers to be closer to a new place of work or education institution. The expenses are only deductible against employment, business or certain education income earned in the new location. - Pension Splitting
You can split up to 50% of certain qualifying pension income (excludes CPP and OAS) with a spouse or common-law partner as long as both parties agree to do so. Certain pension income such as RIF annuity payments cannot be split until the person splitting their income is 65 years of age. - Public Transit Amount
You can claim a non-refundable tax credit for the full amount paid for public transit passes or multiple transit passes paid during the year. - Recaptured CCA on a Rental
If you record depreciation on a rental property for tax purposes (commonly referred to as "Capital Cost Allowance" or "CCA") and then sell that property at a gain, you will have to include all of the CCA recorded to date in your income for the year of sale. - Registered Disability Savings Plan (RDSP)
Individuals who qualify for the disability amount can make contributions to a registered disability savings plan. The government will pay matching grants to the plan of up to $3,500 per year. The amounts of these grants depend on the beneficiary's family income and the amount contributed privately. The government will also contribute bonds of up to $1,000 per year to the plans of low-income Canadians with disabilities. - Registered Education Savings Plan Contributions (RESP)
If you make contributions to Registered Education Savings Plans you will receive a Canada Education Savings Grant worth 20% of your contribution up to a maximum of $500 per year. Families with a qualifying net income of $0 to $77,769 will receive additional grants worth up to 20% on the first $500 contributed. - Registered Retirement Savings Plan (RRSP) - Contribution Limit
If you contribute above your RRSP deduction limit for the year, you may have to pay a special tax on the excess contributions. Your contribution room shows on your Notice of Assessment. - Small Business Corporations
If your incorporated business qualifies as a qualified small business corporation, you may be able to sell the shares of that business for a gain up to $750,000 and pay zero income tax. - Spousal RRSPs - still useful
Spousal RRSPs may still be a useful income splitting tool. RRSP annuities and RIF annuities cannot be income-split with the spouse until the person splitting their income reaches 65 years of age. On the other hand, spousal RRSPs can be withdrawn at any age and these withdrawals will be taxed in the spouse's tax return (hopefully at lower tax rates). - Tax Free Savings Account (TFSA)
Starting January 1, 2009, you can open a registered savings account that allows you to earn the investment income tax free within the account. The contribution limit starts at $5,000 for Canadian residents who are 18 years of age or older. The limit will increase by $5,000 per year. Generally, the types of investments permitted in a TFSA are the same as those in a registered retirement savings plan (RRSP). - Union Dues and Malpractice Professional Insurance Premiums
Annual dues deductible against employment income not only includes dues paid to a union or professional board and professional memberships, but also includes professional or malpractice insurance premiums. - Universal Childcare Benefit
Each family with children under the age of 6 may be eligible to receive $100 per month per child. - Valuable Tax Credit - Caregiver Amount
If you have a parent or grandparent who is 65 or older living with you, or another relative who is dependant on you due either to a mental or physical impairment and their income is less than $18,534, you may be able to claim the caregiver amount. - Voluntary Disclosure
The Voluntary Disclosures Program allows taxpayers to come forward and correct inaccurate or incomplete information or to disclose information they have not reported during previous dealings with CRA, without penalty or prosecution. Some conditions apply. - Work-Space-in-the-Home Expenses
If you work out of your home for your business, and meet certain criteria, you may be able to claim a portion of your home expenses against your income.