While chirping birds aren’t in symphony just yet, the weather is finally breaking ground in Toronto – with an expected high of 17+ by end of week!
Alas, I’m grateful. Life is good.
But, accompanying this most wonderful time of year is a not-so-welcomed guest, tax season. Yup, for many Canadians the looming April 30th deadline strikes a tinge of fear & anxiety.
For others, tax time offers some money saving opportunities, courtesy of our tax system. I’m going to share with you three of those hidden gems.
Tax Saving Gem #1. If you’re a first time buyer, for example, you can claim up to $5,000 for the purchase of a qualifying home that you bought in 2013. Both of the following situations must apply:
a. You or your spouse or common-law partner acquired a qualifying home.
b. You did not live in another home owned by you or your spouse or common-law partner in the year of purchase or in any of the four preceding years.
A qualifying home is one that is registered in either of your names and includes existing homes and homes under construction. The types of home allowed, include: single-family houses; semi-detached houses; townhouses; mobile homes; condominium units; and apartments in duplexes, triplexes, fourplexes, or apartment buildings.
Watch the First Time Home Buyers Tax Credit video below
Tax Saving Gem #2. Are you a regular downtown commuter in condo-land like me, or perhaps just a frequent user of public transit? There’s a tax credit for the cost of monthly or annual public transit passes. This applies to travel on buses, streetcars, subways, commuter trains or ferries, and may apply to electronic payment cards as well.
Tax Saving Gem #3. Have you heard about the family caregiver tax credit? If you have a dependant with an impairment in physical or mental functions, you may be able to claim a non-refundable tax credit of up to $306 per eligible dependant.
Watch the Family Care Giver Tax Credit video below
While the above list is by no means a complete nor exhaustive one, every year many Canadians overpay their taxes because they simply aren’t aware of the more obscure tax credits that they qualify for.
Be proactive, always talk to a qualified tax professional to explore what your options are. Now it’s your turn. Know of any useful tax gems out there? Share. Leave a comment.