Top Tips You Should Know About Your Taxes

For individuals

  1. Plan ahead – Register for My Account and sign up for direct deposit so you’ll be ready when you file your return. Also be sure to file on time to avoid late-filing penalties and fees and to make sure there are no interruptions to your benefit and credit payments.
  2. Tax-free savings account (TFSA) – Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not subject to tax—either while held in the account or when withdrawn.
  3. Registered retirement savings plan (RRSP) – You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan.
  4. Charitable donations – Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donees may be eligible for a charitable tax credit.
  5. Families – There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes—save those receipts! If you care for dependants with a physical or mental impairment, you may be able to claim up to an additional $ 2,000 in the calculation of certain non-refundable tax credits related to the new family caregiver amount.
  6. Students – Were you a student during 2012? You may be able to claim tuition, textbook, and education amounts, as well as the interest you paid on your student loan.
  7. Public transit amount – If you use public transit, you may be able to save by claiming the cost of your transit passes.
  8. Seniors – If you receive a pension, you may be able to split up to 50{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} 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.
  9. Homebuyers – You may be able to save up to $ 750 if you bought your first home in 2012.

For more information, visit the CRA at www.cra.gc.ca.

2013-03-04T09:16:51+00:00