As you prepare to file your tax returns, you may be wondering if there are any tax credits you can get to acquire a little more money in your return. The thought of having to file your taxes is cringe worthy, but knowing that there are tax credits you can get that are simple to discover may ease your mind.
The 7 Deadly Sins
Charitable Donations
If you make donations to charity, make sure you are keeping the receipts. Charitable donations will give you a larger tax credit if the donation was more than $200. Charitable donations may be saved for up to five years, which means that if you save them then turn them all in at once during a year that you need it the most, you will get a larger credit.
Family Tax Cut
This tax break is for couples who have children under the age of 18. This credit is up to $2000 and non-refundable. This proposed family tax cut allows the higher-income earning spouse to transfer up to $50,000 of taxable income to the spouse who has the lower-earned income. The maximum benefit can be $2000. This relief is calculated on the difference in the tax before and after the transfer of income. In order to benefit from this credit, each spouse has to file a tax return and either spouse can claim the credit.
Universal Child Care Benefit
The Universal Child Care Benefit provides $160 per month for each child under the age of six and the parents will receive up to $1920 each year for each child in this age group. There is also a new benefit that the government is introducing which would be $60 per month for children ages 6-17. For this age group, parents will receive up to $720 per child. All families with minor children are eligible and in order to qualify, they need to complete the Canada Child Benefits Application form.
First-Time Donor’s Super Credit for Charitable Donations
This new credit is meant to enhance the attractiveness of donating to a charity. This is perfect for young Canadians who are in the position to make first-time donations. The FDSC will increase the value of this tax credit by 25 percentage points if neither the taxpayer or their spouse has claimed the credit since 2007. A $1,000 cash donation will be applied by the FDSC of any one taxation year from 2013-2017.
Farmers Tax Deferral
For farmers who dispose of breeding livestock due to a drought or excess moisture condition in specific regions, there will be a special income tax rule. This rule will allow farmers to exclude up to 90% of the sale proceeds from their taxable income until the following year of the sale or a later year of the conditions will not subside. This plan proposes to extend the deferral to bees and all types of horses that are over 1 year old and kept for breeding.
As you can see, these are just a few of the tax credits you may be able to receive. Tax credits are great for those who qualify for them because it will give them that little bit of extra money they may need for that year.