With the current economy, raising a family can be a challenge. However, there are many benefits, credits, and deductions that can help your family with costs during the year. These could save your family hundreds of dollars and lower the amount you owe at tax time. The biggest key is to file on time if you wish to take advantage of these credits.
- Child care expenses: If you pay child care so that you can go to work or school, you may be able to claim those expenses on your tax return. Claiming child care expenses may reduce the amount of tax you have to pay. You, your spouse, common-law partners, or single parents can claim child care expenses. For further details on this visit the CRA link to see what you may be eligible for:
https://www.canada.ca/en/revenue-agency/cra-canada.html?utm_campaign=not-applicable&utm_medium=redirect&utm_source=cra-arc.gc.ca_redirecttx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/wht-eng.html
- Child disability benefit: The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons to reduce the amount of income tax they may have to pay. To qualify, a doctor must certify on Form T2201 that there exists a severe and prolonged impairment that “markedly restricts” the individual’s daily living activities. For further details on visit the CRA link to see what you may be eligible for:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html
- Working income tax benefit (WITB): Low-income Canadians in the workforce who are at least 19 years of age are entitled to this refundable tax The tax credit is intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce.For further details on visit the CRA link to see what you may be eligible for:
- Children’s arts tax credit: With children’s arts tax credit you can claim a 15% non-refundable children’s arts tax credit based on up to $250 in eligible expenses per eligible child. An additional amount of $500 is available for children eligible for the disability tax credit. For further details on visit the CRA link to see what you may be eligible for: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses.html
Other potential tax savings that you may be eligible for include:
- Goods and serviced tax/harmonized sales tax (GST/HST) credit: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/goods-services-tax-harmonized-sales-tax-gst-hst-credit.html
- Children’s fitness tax credit: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses.html
- Canada child benefit (CCB): https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html
Eliam Chikange / Payroll Specialist / PEO Canada