Archive for February, 2012

Ten (10) tips to Minimize your Tax payable

1) RRSP

Dead line to buy RRSP will be February 29, 2012. You can buy up to your maximum deductible.You can find this information line (A) of the RRSP Deduction Limit Statement, on your 2010 notice of assessment or notice of reassessment or call the Canada Revenue Agency.

2) CHILD CARE EXPENSES

Do not forget to ask to your daycare a summary of your expenses paid in 2011. Only the parent with the  lowest income can claim this deduction.

3) TFSA

The maximum annual contribution limit to a TFSA is $5,000. Any income from this saving account will be free of tax.

4) CHILDREN’S FITNESS AMOUNT

Maximum credit: $500 per child. Keep all your receipts.

5) PUBLIC TRANSIT AMOUNT

Monthly passes paid to the TTC are eligible to a credit. Keep all receipts plus cards.

6) EMPLOYMENT EXPENSES

Some employment expenses may be illegible to a deduction. Your employer will need to provide the form T2200 to you.

7) MEDICAL EXPENSES

This Canada Revenue Agency Link will give you the list of relevant expenses.

8) DONATIONS

Donation to charities may be illegible to a tax credit. The charities listing is available on the Canada Revenue Agency Website.

9) TAX ON SPLIT INCOME

If your spouse or partner is retired, you may be illegible tax on split income.

10) INTERESTS PAID ON STUDENT LOANS

Not all the banks send automatically a yearly statement. Do not forget to call them.

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