Whether you have income or not, you are required to file a personal tax return in Canada. The deadline for filing personal tax returns is always April 30th of every year. However, due to the COVID-19 pandemic, this year, your taxes are now due June 1, 2020.
There are several personal tax credits you can claim to reduce your taxes due and possibly even increase the amount you get in your tax return. A tax accountant can help you file your taxes based on your specific situation.
Let’s look at 12 important personal tax return credits you can claim:
1. Basic personal tax amount credit
If your total income for the year was $12,069 or less, then you will automatically be given the basic personal tax credit and you won’t have any income taxes on federal.
2. Married or common-law partner personal tax credit
If your spouse (someone you are married to or in a common-law relationship with) doesn’t have any income, or if they have a low income then you can benefit from this credit.
3. Eligible dependent tax credit
Single parents and divorced or separated parents who are supporting the child who lives with them can take advantage of this tax credit.
4. Child tax credit
You can claim the child tax credit for each child that resides with you and is under 18 years of age
5. The age personal tax credit
This is an automatic credit given to those who are 65 years and older. It is important to note that this credit is reduced when a person’s income is above a certain amount.
6. The caregiver personal tax credit
You are eligible for this credit if you are the caregiver for a grandparent or elderly parent
7. Pension income amount
If you are 65 years of age or above, then you can claim $2000 or your pension income. If you are under 65 years old, then you can claim a maximum credit of $300.
8. Adoption expenses personal tax credit
If you adopted this year, you could claim adoption expenses, such as:
- Fees paid to the government registered adoption agency
- Travel expenses incurred
- Legal fees
- Document translation fees
NOTE: To claim this credit, the child must be under the age of 18 years when the adoption is completed.
9. First time home buyers personal tax credit
You could claim this credit if you just purchased your first property in Canada and the house is registered under the name of the taxpayer or the spouse of the taxpayer. The maximum credit amount is generally around $750.
10. Tuition Fees personal tax credit
If you paid school tuition fees for any post-secondary courses, you are entitled to claim this credit. You can claim 15% of your paid fees. The course must have been at least three consecutive weeks long and the course fee should be greater than $100.
11. CPP contributions and employment insurance premiums personal tax credit
If you pay CPP and EI throughout the year you are eligible to claim this credit.
12. Part-time and non-resident personal tax credit
Part-time residents can claim this credit for the days they lived in Canada.
These credits are for personal taxes, but if you’re a business owner, take a look at our complete guide to small business tax write-offs to see what you are eligible to claim.
Before submitting your taxes, this year make sure you have applied for all the tax credits you are eligible for. Doing so can help you save on any taxes due and can potentially even increase the amount you get in your tax return.
Calculating the actual amounts can get a bit tricky and that’s where we step in. Speak with a qualified personal tax accountant at webtaxonline today to get help with filing your taxes in the most efficient and money-saving way possible.