Tax Tip Thursday
Tax Deductions & Credits for FY2020
A couple of weeks ago, I spoke about some of the tax benefits and credits available to seniors (click here if you missed it!). This week I thought I would carry on with some credits that are available to the rest of us!
If you are unsure about these or anything else you have heard about, I am happy to help. Give me a shout to book an appointment!
| Credit | Benefit |
|---|---|
| Federal Tuition & Education Tax Credit | This one is often not well understood, but is available to a lot of people!
This is a non-refundable tax credit equal to the amount of tuition paid to an eligible education institution in the year. It is designed for the student to be able to take advantage of it now OR later OR to make it available to their parents. It is up to a $750 tax impact! No income threshold here. |
| Ontario Trillium Benefit (OTB) | OTB covers property taxes and rent and can provide a credit to both seniors and non seniors, depending on the amount paid and income of your family.
It is important that you provide your rent or property tax payments to your tax preparer! This amounts to a monthly deposit from the Ontario government that can be anywhere from $0 to $100 or more! Thresholds vary by circumstance, but start at approximately $30,000. |
| Ontario Senior Home Owners Property Tax Credit | This one is also geared towards property taxes paid on your property, but is for people over the age of 64.
The threshold starts at $35,000. |
| Goods & Services Tax Credit (GST) | The GST/HST credit is a non-taxable amount paid four times a year to individuals and families with low and modest incomes to help offset all or part of the GST/HST that they pay.
Thresholds are a little higher for this one — starting at $39,000 for 2021. |
| Canada Workers Benefit | The Canada Workers Benefit only goes up to $1,381, but the threshold for it starts as low as $13,000. The amount then declines up to $25,000, at which point you don’t get anything. |
| Eligible Educator School Supply Credit | If you personally purchased good and supplies for teaching for which you were NOT reimbursed, you can claim up to $1,000! |
| Employee & Partner GST/HST Credit | If you work for a company or partnership where you are required to purchase materials or drive your vehicle for business, you are entitled to this credit! To get it, you need to have records and receipts for everything if you are audited. |
| Climate Action Incentive (CAI) Credit | The CAI Credit payment consists of a basic amount and a 10% supplement for residents of small and rural communities. This payment may reduce your amount payable or increase your refund when you file your income tax and benefit return! This is supposed to compensate you for the carbon tax that has increased the cost of everything.
Basic Amount = $300 Spouse Amount = $150 Dependent Amount = $75 each Add 10% if rural. So a married couple with two children who live in a rural community will receive a $660 tax credit! Careful though — many of these credits disappear after 4 years so be sure to file even if you don’t have any income! |
This is a pretty big list,
And it does not cover everything you could be eligible for! If you want to optimize your taxes and keep more of YOUR money in YOUR pocket, just give me a call. I am happy to help you!
Disclaimer:
This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.