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Wednesday, March 05, 2014

Working Poor & Low Income People Need Not To Apply : Revenue Canada talking Shit With: They Have Family Tax Credits & Deductions

Like every other year, the working poor and those on social assistance will see no benefit of these expenses that they pay for, and you would think that these are the people who would benefit most, I know for sure that if the income being reported is under 20 grand , you will see if you have entered any and even all these expenses, that your return will not be effected in any way.
So when you hear the Government of Canada sounding off that they are giving credit - think again! 
Public Transit Tax CreditYou can take a tax credit equal to 15 percent of the cost of public transit passes used by the end of the calendar year. There are many rules surrounding this credit—make sure you keep your receipts and passes!
Children’s Fitness Tax Credit
This credit allows parents to deduct 15 percent of the cost of fitness programs (to a maximum of $500 per child) from their taxes— a potential savings of $75 per child. The fitness credit may be split between the parents of children under 16 years of age.  Families with children under 18 who have disabilities can claim an additional $500 if a minimum of $100 in eligible expenses has been paid.
Permitted programs must include a significant amount of physical activity contributing to cardio-respiratory endurance, and must also focus on one or more of muscular strength, muscular endurance, balance or flexibility. Obtain a receipt for your file.
First-time Donor’s Super Credit
The first-time donor’s super credit (FDSC) is a new credit which supplements the value of thecharitable donations tax credit (CDTC) on donations made after March 20, 2013 by first-time donors by 25 percent. First-time donors means neither you, nor your partner have claimed or been allowed a charitable donations tax credit for any year after 2007.
According to the CRA: “The FDSC applies to a gift of money made after March 20, 2013, up to a maximum of $1,000, in respect of only one taxation year from 2013 to 2017. If you have a spouse or common-law partner, you can share the claim for the FDSC, but the total combined donations claimed cannot be more than $1,000.”
Children’s Arts Tax CreditThis credit allows parents to deduct 15 percent of the cost of arts programs, to a maximum of $500 per child, from their tax bill—a potential savings of $75 per child. The child must have been younger than 16 at the beginning of 2013 and the program must be “ongoing, suitable for children and supervised”—so little Billy’s crayon time at home doesn’t count. Permitted programs must focus on artistic, cultural, recreational or developmental activity, such as “literary arts, visual arts, performing arts, music, media, languages, customs, heritage,” wilderness and the natural environment, interpersonal skills training and tutoring.
This credit can be split between the parents to achieve the greatest tax reduction, and is in addition to the federal children’s fitness credit. (The same program expenses cannot, however, be used to claim both this credit and the fitness credit. Music and Movement, for example, could only count towards the arts credit or the fitness credit, not both.) You will need a receipt from the program provider.
Eligible Dependent CreditA parent can claim this credit for one dependent child where there is no spouse (or if you do have a spouse or common-law partner you were not living with, supporting or not supported them). The credit is worth $1,623 federally if the child earns no income, and is in addition to the child amount. There are many T’s to cross for this credit, so please refer to for more details. All provinces and territories offer a similar credit.
Child Care Expense DeductionThis particular deduction must be taken by the spouse with the lower income (zero income included), and cannot be greater than two-thirds of that spouse’s earned income. There are other limits—the child care expense deduction cannot be more than $7,000 per child six years old or younger, and maxes out at $4,000 for each child between seven and 16 years.
Don’t forget that this deduction encompasses more than just daycare and nanny expenses. The following are also included: day camps; child care component of private school tuition; boarding schools (weekly maximums apply) and overnight camps (weekly maximums apply).
You will need to file Form T778, Child Care Expenses, with your income tax return, and you must also obtain a receipt showing the information required by the form about the services provided. If the services were provided by an individual, you will need the individual’s social insurance number.

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