Posted on Sunday 01 May 2016
Are you ready to make the most out of your tax savings ? Though it might be late to be filling, for those Canadians who requested an extension on their taxes, these strategies and tax savings will prove to be more than beneficial. It always hurts when you save money by budgeting but then still lose it to taxes. We're sure those who are self employed will find many ways to take advantage of these here too! Canadians who can, should claim as many tax deductions and credits as possible. This will then potentially lower their tax burden at the end of the year. Furthermore, the end goal is to make certain to avoid all the common misunderstandings, pitfalls and the limitlessness misinformation that does exist. We will dispel some of this for you right here! Now, before we actually start listing some of these tips, we want to point out a very important issue with financial gifts or benefits gained on your job. Some Canadians believe these don't have to be claimed, as they think they are non taxable. Modest gifts from your employer might be okay to not claim, but if you're receiving end of year bonuses that are above $500--and this is every year; these kinds of things have to be claimed. If it was something like every 3 to 5 years, then you could get away with it. Unfortunately, the CRA will pick up on discrepancies through audits and by other regulations. Let's take the time to look at some of the things you should do and some of those you shouldn't do when it comes to your taxes and gaining those precious tax advantages!
Just because you receive a pay raise or a promotion doesn't necessarily mean you'll be in a new tax bracket and have to pay more out in taxes at the end of the year. In fact, the opposite might be true. Too many Canadians are losing out on tax benefits by not accepting promotions and raises versus any truth to the latter. Be proud of your work and your position and accept what you've earned! After all, you don't want to keep getting by on instalment loans.
Kids still get a $9800 personal exemption. This is great for kids who have a part time job during high school, as they may not have to pay any tax at all. Not sure how it applies to their possible instagram venture though or their high school side hustle.
So many Canadians believe that filing taxes online can lead to unexplained penalties and other unnecessary costs, but this isn't true. As long as you're familiar with how to file taxes and if you have the similar earnings year after year, filing online can save you time and money. The earlier you can get your taxes taken care of the better! There are definitely more tax myths out here that intimidate and scare people for no reason. Filing your taxes might take time, but it's a necessary evil. Knowing the facts about the CRA and how it all works makes everything even simpler. With further investigation and educating, you'll learn more tips and strategies that might be perfect for you! If you haven't filed yet, don't wait to get that extension approval!
Business meetings can still count as 50% tax deductible, but in addition to this well known fact it is also possible in some instances to write off the additional cost of special foods if they are required as part of a medically necessary diet. If you are careful, this can help you save money while doing meal planning. For example, some people with celiac disease can write off the difference between the cost of a gluten-free version of a normally gluten-containing food. If you work from home, that might help you save further. You either need to purchase a home or be using your living space as a work from home space. We encourage you to contact your accountant for details.