8 tax tips and credits for families with new babies!

Congratulations on your bundle of joy! While you’re trying to get caught up on some sleep TAXplan has made filing tax returns easier than ever for young families. We know you’re tired and time is limited with the little one. That’s why filing your returns this year with TAXplan is the right fit.  There’s no need to leave your home to file your taxes – we’ve made it easy and convenient for you to file your return from the comfort of your couch or rocking chair. We’ve even done some homework for you by making a list of 8 credits & deductions that are available to families with babies and dependants.

1)      Medical Expenses – Any expenses you may have incurred such as the cost of a hospital stay or the cost of fertility treatments, may be eligible to be claimed as medical expenses on your income tax return. Medical expenses are one of the most overlooked ways of saving at tax time. You can keep track of your medical expenses throughout the year with TAXplan’s Medical Expense Organizer.

2)      The Canada Child Benefit (CCB) – This tax-free monthly payment is an income-based benefit to help families with the cost of raising children under 18 years of age. In order to qualify, you must file your taxes every year, as the CRA uses information from your return to calculate how much you qualify for. The benefits are paid over a 12-month period, starting in July, and based on your income tax return of the previous year.

4)      Child Care Expenses – If you and/or your spouse  paid for child care this year because you had to return to work or go back to school make sure you get a receipt. Child care expenses such as babysitters, nursery school or daycare, that were incurred in order for you to work or go to school are an eligible income tax deduction.

5)      Disability Amount – If your child is born with a disability please ask your doctor for a signed T2201 (Disability Tax Credit Certificate) and send a copy to the Canada Revenue Agency. This will entitle you to claim the disability amount for your dependant and help provide some additional relief on your tax return. If you file with TAXplan we can do this for you!

6) Adoption expenses – If you adopted a child under the age of 18, certain expenses incurred in the adoption process can be claimed as eligible expenses. The maximum you can claim per child is $15,670, the expenses must have been incurred during the tax year in which the adoption process was completed.

Here’s a list of the eligible expenses:

  • fees paid to an adoption agency licensed by a provincial or territorial government;
  • court costs and legal and administrative expenses related to an adoption order for the child;
  • reasonable and necessary travel and living expenses of the child and the adoptive parents;
  • document translation fees;
  • mandatory fees paid to a foreign institution;
  • mandatory expenses paid for the child’s immigration; and
  • any other reasonable expenses related to the adoption required by a provincial or territorial government or an adoption agency licensed by a provincial or territorial government.

7) The Amount for an Eligible Dependent: If you’re a single parent, you may be able to claim one of your children under 18 years of age under the Amount for an Eligible Dependant. TAXplan’s TAXprofile questionnaire is designed to help you answer all these questions – ensuring you get all the eligible credits and deductions coming to you.

8) Canada Caregiver Amount: If you support a spouse / common-law partner, or a dependant with a physical or mental impairment you may qualify for the Canada Caregiver Amount. Contact TAXplan for more details.