Are you confident about maximizing your income tax situation in 2020? Here in this article we will discuss how you can get more money back from your tax return.
There are the daycare expenses that you have paid whole year. When you hire a live-in child care provider then you can qualify for it. Also, if your children attend any day camps then those expenses also qualify for deduction.
Deduct Spousal/Child Support Payments
If you have any former spouse or child then payments to support them also qualify for tax deduction.
Deduct Student Loan Interest
If you have got any student loan then you can ask for the deduction on the interest charged on the student loan. You have to remember that only interest on the original student loan will qualify.
Deduct Property Taxes (Owners) or Rental Payments (Tenants)
Home owners can deduct their property taxes based on their province of residence and it is also affected their income. Also, tenants can deduct their rent payments.
Deduct Professional and/or Union Dues
You can lower your taxable income by showing your professional association fees and union fees.
Deduct Employment Expenses
If your employees ask you to pay for the work material then these expenses are tax deductible. For example, if you are a teacher and purchase supplies for your classroom then these expenses qualify for tax deduction.
Deduct Education/Tuition Expenses
Post-secondary tuition costs can be deducted by either the student or a relation of the student.
Deduct Moving Expenses
If you have moved to get at least 40km closer to your workplace, new company, or post-secondary school, you can claim your expenses from that transfer.
Deduct Medical and Charitable Expenses
You can obtain a partial deduction for some medical expenses and charitable donations.
Apply for the First-Time Home Buyers’ (FTHB) tax credit
If you are a first time home owner within past 4 years then you qualify to claim $5000 tax credit. You apply the lowest federal income tax rate against that $5,000. Recently, the lowest tax rate has been 15%. At 15%, your rebate is a cool $750.
Apply for GST/HST New Housing Tax Rebate
If you have purchased a newly built home or have made major renovations to a home that is your (or a relationship) primary residence, you might be eligible for a GST/HST tax refund that has already been paid. There is a similar clause, under some circumstances, for landlords.
Apply for Various Provincial Credits
In reference to federal and provincial GST/HST credits, some states provide extra credits for some sections of the population. These include survival rehabilitation of seniors’ homes in New Brunswick and climate change incentives to reduce carbon taxes in provinces such as Saskatchewan, Ontario and others. There are several more credits, particularly for seniors, such as Ontario Transit Pass credit, so check out your province’s website.
Apply for the Disability Tax Credit
If you or anyone in your family suffers from any illness or accident, then you can qualify for the disability tax credit. To claim this you have to hire a medical practitioner to prove the disability statement.
Although the tax deduction amount varies by province, once you qualify for it, it can open the door to other benefits too.